Organic Law 8/2000 (of December 22) on the Rights and Freedoms of Foreigners in Spain and their Social Integration, together with the recent Organic Law 14/2003, on the same matter, clarify and even amend certain of the provisions introduced by the previous Organic Law 4/2000 (of January 11), in an attempt to provide greater guarantees for a policy to ensure the integration of nationals from third countries who reside legally on Spanish soil, and encouraging nondiscrimination of this group in Spanish economic, social and cultural life.

Laws 8/2000 and 14/2003, introduce the following main new features: they clarify the definition of "foreigner" (non-Spanish national or non-Community national); they extend to foreign nationals the constitutional safeguards in Article 13 of the Spanish Constitution on civil liberties; they introduce enforcement measures to combat illegal immigration, as well as measures to combat human trafficking, and enable certain activities linked to this traffic to be monitored.

With regard to residence, the new Legislation differentiates between the following situations: visit (for a period shorter than 90 days, albeit extendible in certain cases); temporary residence (a period longer than 90 days but shorter than 5 years); and permanent residence.

To be self-employed workers, foreigners require an administrative approval. Employers who intend to engage a foreigner who is not authorized to work in Spain should previously obtain an authorization from the Ministry of Labor and Social Affairs. Nevertheless, Organic Law 14/2003, establishes that, without prejudice to the responsibilities of the employer, lack of a work permit will not render the employment contract void with regard to the rights of the foreign worker and will not hinder his obtaining of the benefits to which he may be entitled.

The Law on the Status of Foreigners in force was implemented by regulations approved under Royal Decree 864/2001.Nevertheless, the process of approving a new set of regulations is at a very advanced stagenew implementing regulations approved under Royal Decree 2393/2004 were published on January 7, 2005, and will enter into force one month after their publication in the Official State Gazette.

1. Nationals from non-EU countries
Under Spanish labor legislation, non-EU nationals intending to work in Spain must obtain a special work visa and a work and residence authorization. The Spanish labor authorities grant different types of work authorization depending on the type of work and its duration.

Initial authorizations for employed work and residence will be for one year and can be restricted to a certain geographical area and type of work for one year.After the one-year period, initial authorizations can be renewed for a two-year period. Once renewed, an authorization will allow its holder to engage in any type of work anywhere in Spain.

Foreign citizens will also be able to obtain a permanent residence authorization if they provide proof that they have resided legally and continuously in Spain for five years. Upon obtaining this authorization, the worker in question must apply for a foreigner’s identity card, renewable every five years.

Authorizations for self-employed work and residence will also be granted for an initial one-year period and can be renewed on expiry for further two-year periods. As in the case of an authorization for employed work, a foreign citizen will be entitled to a permanent residence authorization if he or she has resided in Spain for five years.

The current types of work authorization are as follows:

Work authorizations are granted taking into account the employment situation of Spanish nationals for the same kind of work.

However, there are certain preferred categories such as foreigners who have Spanish family ties, workers necessary to set up or repair imported machinery, or senior executives.

Foreigners legally working in Spain generally have the same rights and obligations as Spanish citizens under Spanish labor legislation.

2. Nationals from EU Member States
Nationals from other EU Member States are not subject to the requirements applicable to other foreigners to obtain a work authorization as an employee or a self-employed worker, because EU legislation on the free movement of workers applies fully.They are therefore entitled to perform any activity both as employees and as self-employed workers, in the same terms as Spanish citizens.

Since Royal Decree 178/2003, of February 14, came into force, self-employed workers or employees, students or beneficiaries of the right to permanent residence, provided that they are citizens of the European Union Member States or of other States signatories to the European Economic Area Agreement, and certain of their relatives may reside in Spain without need for a residence card. It will suffice for them to hold a valid national identity card or passport.

Other foreign citizens included in the Community system should obtain a residence card.

There is currently a transitional legal regime in place for citizens from the new EU Member States.