The suspects nabbed in raids in major cities across Spain allegedly defrauded Spain's social security system to the tune of €7.7 million ($10.6 million).
They are charged with tax crimes and welfare fraud, as well as worker's rights infringements and document forgery, police said in a statement on Monday.
The alleged scammers set up a total of 29 fake companies in Barcelona with some 1,544 staff to obtain unemployment benefits and subsidies, according to police.
Some also created fake jobs to illegally renew the work visas of foreign nationals in Spain, authorities added.
The arrests are part of new tough approach to social security fraud in Spain, signed off on by relevant ministries in 2013.
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