The self-employed sectors receiving the most scrutiny from tax inspectors in Spain has been revealed.

According to the latest annual report from the Labour and Social Security Inspectorate (ITSS), more than 690,000 workplaces belonging to 522,883 companies were audited during 2024.

The figures show a significant concentration of inspections on bars, restaurants, shops, transport firms, logistics companies, construction sites and small service-sector businesses.

The report also highlights the financial consequences for employers found breaking the rules.

Inspectors detected 130,416 labour and Social Security violations during the year, resulting in proposed fines totalling more than €541million.

That equates to an average penalty of over €4,100 per infringement.

Hospitality, retail and transport under the spotlight

The service sector was by far the most heavily targeted area of the economy, accounting for 62.9% of all inspections carried out in 2024.

The category includes hospitality businesses, bars, restaurants, retail shops, hairdressers, cleaning companies, transport operators, logistics firms and personal care services.

Labour inspectors say these sectors frequently generate complaints and reveal irregularities involving working hours, unpaid overtime, incorrect contracts, wage issues and Social Security registration problems.

Working time violations were among the most common issues detected.

Inspectors carried out more than 35,500 checks relating to working hours, rest periods and overtime during the year, uncovering almost 12,000 violations and proposing more than €15million in sanctions.

Construction a major target

Construction accounted for 21.8% of all inspections, meaning more than one in five visits took place on building sites, renovation projects and associated businesses.

Unlike the service sector, inspections in construction are heavily focused on health and safety risks.

Authorities pay particular attention to fall protection, machinery safety, excavations, electrical hazards, personal protective equipment and subcontractor coordination.

Almost 40% of all workplace safety inspections carried out in Spain were concentrated in the construction industry, despite it being far smaller than the services sector.

What inspectors are looking for

The report suggests inspections are becoming increasingly targeted rather than simply checking paperwork.

One major focus remains employment fraud.

During 2024, inspectors forced the conversion of 77,787 temporary contracts into permanent positions after identifying irregularities.

A further 89,959 fixed-discontinuous contracts were converted into standard permanent contracts due to misuse of the employment category.

Authorities are also cracking down on workers officially employed part-time but allegedly working far more hours than declared.

Almost 42,000 working hours increases were imposed following inspector interventions.

Time recording systems continue to be another major area of concern.

More than 9,000 inspections focused specifically on workplace clocking-in systems, resulting in nearly 1,900 violations.

Illegal employment

Labour inspectors carried out more than 278,000 investigations targeting undeclared work and Social Security fraud.

These operations uncovered 92,689 jobs that had not been properly registered with Social Security.

Authorities also identified 7,234 cases involving so-called ‘false self-employed’ workers, where individuals are registered as freelancers despite effectively working as employees.

The inspectorate has additionally intensified checks on foreign workers without the correct employment permits, particularly in hospitality, construction, agriculture and retail.

More than 12,000 workers were found to be working irregularly in this area alone, generating proposed sanctions exceeding €124million.