Border protection activity and the enforcement of immigration-related laws that impact employers and foreign nationals are always on the frontline in Spain and Europe. Sanctions for the general immigration law and the Law for Entrepreneurs are set out both in the general immigration law and in Spanish labor legislation (the Law for Breaches and Sanctions in the Social Order in Spain). Employers of foreign nationals unauthorized for employment are becoming increasingly subjected to administrative and criminal penalties. Entries and departures are now electronically controlled throughout the Schengen territory and the EU, which is a more accurate system. Concerns about foreign workers' impact on the Spanish labor market, given the high unemployment rate in Spain and the lack of personnel to handle immigration procedures, are reasons that are frequently stated to justify longer processing times and the increase in refusals of petitions under the general immigration law. Employers should evaluate the immigration alternatives prior to hiring foreign nationals.
Employers involved in mergers, acquisitions or reorganizations must also bear in mind the status of foreign employees and the impact on foreign nationals' employment eligibility when structuring transactions. Due diligence, including reviewing potential immigration-related liabilities associated with an acquisition, is becoming increasingly important as fines are high and enforcement activity is increasing.
However, in Spain, there have been several recent modifications to immigration legislation and regulations to benefit family members of Spanish nationals or students of higher-level degrees that would like to remain in Spain once they have finished their studies. There is a clear general interest in attracting talent and highly skilled professionals to Spain and adapting to new forms of work to draw international remote workers and ICT (intercompany transferee) professionals to the country. In addition, there have been legal changes conducive to eliminating bureaucracy by increasing the validity period of initial and renewed permits. More changes to immigration regulations are expected in the coming years.