Payroll Services in Portugal, Spain, and Italy
BRIDGE IN provides fully managed payroll services for foreign companies operating in Portugal, Spain, Italy, and Poland. Whether you have a local entity, are operating through an Employer of Record, or have registered as a Foreign Employer, we are here to help you. One partner, four markets, full compliance.
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What are payroll services?
Running payroll across multiple European countries is complex. Each market has its own labour code, social security system, tax obligations, mandatory benefits, and filing deadlines.
Getting any of it wrong creates compliance risk, employee dissatisfaction, and administrative burden that distracts from your core business.
Payroll Services by Country


Portugal
Portugal has a well-defined payroll and employment framework, governed by the Código do Trabalho. Key employer obligations include social security contributions (TSU) of 23.75%, mandatory holiday and Christmas bonuses, income tax (IRS) withholding and work accident insurance.
BRIDGE IN has deep, hands-on expertise in Portuguese payroll — managing payroll for international companies across tech, shared services and commercial teams since our founding.


Spain
Spain’s payroll environment is shaped by detailed labour legislation, a strong collective bargaining system and significant employer social security obligations — typically 29–32% of gross salary. Monthly filings, IRPF withholding and sector-specific collective agreements (convenios colectivos) all require precise local knowledge to manage correctly.
BRIDGE IN manages payroll for companies operating in Spain, ensuring full compliance with Spanish labour law and Social Security (Seguridad Social) requirements.


Italy
Italy has one of the most complex payroll environments in Europe. Employer social security contributions (INPS) range from 28–32%, mandatory severance fund accrual (TFR) applies to all employees, and compliance with sector-specific national collective agreements (CCNLs) is legally required. Payroll errors in Italy carry significant legal and financial risk.
BRIDGE IN manages the full payroll cycle for companies operating in Italy, covering INPS filings, IRPEF withholding, TFR accrual and CCNL compliance.
What BRIDGE IN Manages on Your Behalf
Regardless of which market you operate in, BRIDGE IN handles the full payroll function:
Monthly payroll calculation and processing
Employer and employee social security contributions
Income tax withholding and remittance
Mandatory benefits administration (holiday pay, bonuses, meal allowances)
Statutory filings and reporting to local authorities
Expense management and reimbursement processing
Benefits management and local provider coordination
Payroll compliance monitoring and regulatory updates
Employee payslip generation and distribution
Offboarding and final settlement calculations
Who We Work With
BRIDGE IN specialises in supporting foreign companies — particularly tech, tech-enabled and professional services businesses — that are expanding into Southern Europe and need a reliable, compliant payroll partner with genuine local knowledge.
We work with companies at every stage:
No local entity yet
we can run payroll through our Employer of Record or Foreign Employer Registration solutions
Existing local entity
we manage your payroll function end-to-end as your outsourced payroll provider
Multi-country operations
we coordinate payroll across Portugal, Spain and Italy under a single point of contact
Why BRIDGE IN
Local payroll expertise in PT, SP, & IT.
Full compliance with each country's laws.
One point of contact across all four markets.
Fast setup and transparent, predictable pricing.
Trusted by 50+ international companies.
Everything in-house. End to end.
Frequently Asked Questions
Payroll in Southern Europe
Yes. BRIDGE IN manages payroll across Portugal, Spain and Italy, with a single point of contact for multi-country clients. This simplifies coordination, reporting and compliance management for companies operating across Southern Europe.
No. If you do not have a local entity, BRIDGE IN can employ your team through our Employer of Record solution or register your company as a Foreign Employer (non-resident company), and manage payroll within that structure. If you already have a local entity, we can manage payroll directly on your behalf.
For new hires through our Employer of Record solution, onboarding typically takes 2 to 5 business days. For companies with an existing entity, payroll setup timelines depend on the complexity of the existing structure, but BRIDGE IN works to minimise setup time in all cases.
With payroll services, your company is the legal employer — BRIDGE IN manages the payroll function on your behalf. With Employer of Record, BRIDGE IN is the legal employer on record, taking on full employment liability and managing payroll as part of a broader employment solution. The right model depends on whether you have a local entity and how you want to structure employment liability.
BRIDGE IN’s local teams in Portugal, Spain and Italy monitor legislative and regulatory developments continuously — including annual minimum wage updates, social security rate changes, collective agreement renewals and new employment law obligations. Clients are notified of any changes that affect their payroll or compliance position.
Explore Country-Specific Payroll Services