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EOR Spain
Employer of Record Spain
Spain is one of Western Europe’s largest economies and a leading nearshore hiring market for UK and Northern European companies. Our Employer of Record service lets you hire Spanish employees quickly and compliantly — fully aligned with local labour law and social security rules — without setting up a Spanish company. We employ your team on your behalf while you keep full day-to-day management control.
- S.L. Registered
- Estatuto de los Trabajadores Compliant
- Onboard in Days
Capital
Madrid
Official language
Spanish (contracts required in Spanish)
Currency
€ Euro (EUR)
Working hours
40 hrs/week
Public holidays
14 days/year
Min. monthly wage (2026)
€1,221 × 14 or €1,424.50 × 12
Min. paid leave
30 cal. days (~22 working)
Collective agreements
Apply in most sectors
Tax year
1 Jan – 31 Dec
Sources: Seguridad Social — Contributions · Agencia Tributaria — Minimum Wage & IRPF · Estatuto de los Trabajadores — Workers' Statute
“Spain is usually top of the list when clients ask us where to hire next — and it’s easy to see why. The talent’s brilliant, the salaries stack up well against the UK, and the market’s on the doorstep. The catch is that the rules are stricter than most people expect, so the companies that do well here are the ones that get it right from day one rather than fixing it later.”
— Clare van Rensburg, HR Consultant at ThisWorks
What is an Employer of Record in Spain?
An Employer of Record is a third party that acts as the legal employer of your staff on your behalf. Your company directs the day-to-day work, while the EOR takes on the formal employment relationship, compliance and admin. (New to the model? See our 2026 guide on what an Employer of Record is.)
In Spain, employment is governed by the Estatuto de los Trabajadores — reformed most recently in 2021 to make the indefinite contract the default. Hire through an EOR and the provider is the entity registered with, and answerable to, the Spanish authorities.
Compliant Spanish contracts
Seguridad Social registration & contributions
IRPF calculation & filing
Convenio colectivo compliance
Spanish-language documentation
Falso autónomo protection
Payslips (nóminas) & reporting
Compliant termination & severance
Work & residence permit support
💡 Falso autónomo note: If your company has been engaging Spanish contractors as self-employed (autónomos) in roles that resemble employment, an EOR is the fastest, cleanest transition path to compliant employment as Spanish authorities increase enforcement under Article 8.1 of the Estatuto de los Trabajadores.
Why Use an EOR in Spain?
Spain is one of Western Europe’s largest economies and a leading nearshore hiring market for UK and Northern European companies — offering a deep, highly educated talent pool in technology, engineering and finance, competitive salaries and full EU membership. But Spanish employment law is detailed and heavily protective of employees, and compliance around collective agreements, dismissal and worker classification requires careful attention.
Access Top European Talent
Spain offers a workforce of over 20 million, with outstanding technology, engineering and finance talent in Madrid and Barcelona — at salary levels that stay competitive against the UK, the Netherlands and Germany.
No Entity, No Delay
Forming a Sociedad Limitada means Registro Mercantil registration, a NIF, share capital and Seguridad Social setup — weeks of work. An EOR lets you hire in days, with no entity of your own.
Convenio Colectivo Handled
Spain has hundreds of sector and provincial collective agreements setting pay, hours and bonuses above the statutory minimum. The EOR identifies and applies the correct convenio automatically.
Spanish-Language Compliance
Contracts, payslips (nóminas) and statutory filings must all be produced in Spanish and in specific legal formats. The EOR handles the language and local paperwork — no in-house Spanish payroll or legal team required.
Falso Autónomo Protection
Spanish authorities are stepping up audits of freelance arrangements. The EOR employs your people in line with Article 8.1 of the Estatuto de los Trabajadores, removing the risk of costly reclassification.
Termination & Severance Handled
Every dismissal in Spain needs a valid legal reason, and an unfair dismissal can cost 33 days' pay per year of service. As the legal employer, the EOR manages exits correctly so a single misstep doesn't become a claim.
“The thing clients most often overlook is how much a collective agreement shapes a Spanish contract — the minimum salary, the extra pay periods, the working hours, all of it. Because we employ people in Spain under an established collective agreement, that framework is already built into every contract we put in place, so clients don’t have to decode it themselves or worry they’ve missed something.”
— Nicky Papadopoulos, Junior HR Consultant at ThisWorks
Hiring Employees in Spain: What You Need to Know
Spanish employment is governed principally by the Estatuto de los Trabajadores (Royal Legislative Decree 2/2015), with social security under the General Social Security Law and income tax under the IRPF framework. Below are the rules that most often catch international employers. See our Spanish hiring guide for more.
Employment Contracts & Probation
Since the 2021 labour reform, the indefinite (permanent) contract is the default, and temporary contracts are limited to specific, justified situations. The main types are:
- Contrato indefinido — permanent (the default)
- Contrato fijo-discontinuo — permanent seasonal
- Contrato temporal — temporary, requiring objective justification
Contracts must be in Spanish and comply with the applicable collective agreement. Written form is required for fixed-term, part-time and remote roles, and a written teletrabajo agreement is needed where an employee works remotely 30% or more of the time (Law 10/2021).
Probation lasts up to 6 months for degree/specialist roles and 2 months for other employees (1 month in companies under 25 staff), unless the convenio sets less. Either party may end employment during valid probation.
Working Hours & Leave
The statutory maximum working week is 40 hours, averaged over the year, with minimum daily and weekly rest periods. Overtime is capped at 80 hours per year and must be paid or offset with equivalent time off.
- Minimum 30 calendar days’ annual leave (approx. 22 working days)
- 14 public holidays per year (national, regional and local)
- A reform to cut the legal maximum to 37.5 hours is advancing — many convenios already set a shorter week
Notice, Dismissal & Severance
Spain has no general statutory employer notice period as in the UK, Germany or the Netherlands — termination is governed by dismissal law. Ending a permanent contract always requires a valid legal reason, given in writing. There are two main routes:
- Disciplinary (serious misconduct) — immediate; no severance if upheld
- Objective (economic, technical or organisational) — 15 days’ notice, plus 20 days’ salary per year of service, capped at 12 months
If a court rules a dismissal unfair, the employer must reinstate the employee or pay 33 days’ salary per year of service, capped at 24 months.
Convenio Colectivo (Collective Agreements)
Arguably the most overlooked compliance issue for international employers. Spain operates hundreds of sector and provincial collective agreements. Governed by Title III of the Estatuto de los Trabajadores, a convenio can set higher pay, extra pay periods, different working hours and enhanced conditions above the statutory minimum.
It applies automatically to every employee within its scope, regardless of what the individual contract says. Identifying the correct convenio and keeping contracts aligned with it is a core EOR obligation — and one international employers frequently underestimate.
Social security contribution and income tax
Every employee in Spain is enrolled in the national social security system (Seguridad Social), which funds pensions, unemployment,healthcare and sick pay. Both sides contribute, but the employer carries the larger share compared to the employee. Separately the employer withholds income tax (IRPF) from each salary and remits it to the tax authority.
| Contribution | Employer | Employee | Notes |
|---|---|---|---|
| Common contingencies (pension, disability, death) | 23.60% | 4.70% | Main contribution; covers pension and major disability |
| Occupational accident & disease | ~1.5% | — | Employer-only; rate depends on the activity's risk profile |
| Unemployment (desempleo) | 5.50% | 1.55% | Permanent-contract rate |
| Professional training (formación profesional) | 0.60% | 0.10% | Small but mandatory |
| Wage Guarantee Fund (FOGASA) | 0.20% | — | Employer only |
| Intergenerational Equity Mechanism (MEI) | ~0.75% | ~0.13% | Rises annually |
| Income tax (IRPF) | — | Variable | Employee only; progressive rate withheld from salary and remitted by the EOR. Depends on income, region and personal circumstances |
For international employers unfamiliar with Spanish payroll administration, calculating and remitting these contributions correctly — and keeping them aligned with the applicable convenio colectivo — can be challenging. An EOR manages all IRPF calculations, Seguridad Social contributions and reporting obligations from day one.
How Our EOR Service Works in Spain
Hiring in Spain doesn’t have to mean months of setup. Our EOR service lets you employ people compliantly — social security, IRPF and collective-agreement obligations all handled — without forming a Spanish S.L. Get to know the team behind ThisWorks.
1
Finding the right employee
You identify your business needs and find the best candidate — or transition an existing civil-law contractor. We can also support you with Polish salary benchmarking and recruiting services.
2
Onboarding locally
We provide an Estatuto de los Trabajadores–compliant contract (indefinite by default, or justified temporary) in Spanish, aligned with the applicable convenio colectivo, and handle Seguridad Social registration.
3
Payroll & Seguridad Social
We calculate and withhold all Seguridad Social contributions and IRPF (income tax), remit payments on time, and provide monthly payslips (nóminas) in Spanish.
4
Benefits & Convenio Administration
We manage all statutory benefits — including the extra pay periods (pagas extraordinarias), annual leave and sick pay — and keep everything aligned with the applicable convenio colectivo.
5
Compliance & support
Our Spain specialists monitor regulatory changes, manage notice, dismissal and severance procedures, and support you and the employee throughout the employment lifecycle.
Hire with a Spanish EOR today!
Whether or not you have a presence in Spain, ThisWorks has you covered. Our EOR solution lets you hire compliantly without a local entity, while our Global Payroll solution manages payroll and compliance for the direct employees of businesses that already have a Spanish S.L.
EOR vs Setting Up an Entity in Spain
Many companies start with an EOR to test the Spanish market, then move to their own S.L. once the team is established for a long term. ThisWorks can also support this transition for your team. Read more about our entity setup service here.
| EOR (via ThisWorks) | Spanish Entity (S.L.) | |
|---|---|---|
| Set-up time | ✓ A few days | 4–8 weeks, sometimes several months |
| Cost | ✓ Low/no upfront cost, predictable monthly fee | High setup + ongoing gestoría, legal and notary costs |
| Effort / burden | ✓ Minimal — payroll, contracts and compliance outsourced | High — payroll, admin and filings handled by your team in Spanish |
| Registro Mercantil / NIF / Seguridad Social | ✓ Included in EOR setup | Separate registrations required from you |
| Convenio colectivo | ✓ Applied automatically under an established agreement | You identify, apply and maintain the correct convenio |
| Flexibility | ✓ Easy to scale up or down without structural changes | Structurally flexible but scaling requires internal capacity |
| Control | Employment handled by EOR provider | ✓ Full legal and operational control |
| Compliance risk | ✓ Handled by an experienced Spain EOR team | Your company takes full responsibility |
| Best suited for | Market entry, testing Spain or building an initial team | Established, long-term operations with a larger local presence |
Many companies start with an EOR to test the Spanish market, then move to their own S.L. once the team is established for a long term. ThisWorks can also support this transition for your team. Read more about our entity setup service here.
Cost of Using an Employer of Record in Spain
EOR pricing in Spain varies by provider and scope of service, but the real advantage over setting up your own entity is financial predictability. Instead of unpredictable legal and compliance overheads you pay a structured monthly fee per employee, so budgeting is straightforward from day one.
What you pay in Spain depends on a few things, such as additional benefits or level of support requested to the provider.
Most providers in Spain use one of two models:
Percentage of Salary
Some providers charge a percentage of the employee’s gross salary. It can look attractive for junior roles, but the cost climbs with every senior hire and pay rise. This makes the budgeting complicated as the team grows.
Fixed monthly fee per employee
A set fee per employee per month, regardless of salary — the model ThisWorks uses. It is prized for its predictability: you always know your employment costs. The exact fee depends on scope of service and any additional benefits requested.
Why Choose ThisWorks for EOR in Spain?
Spain rewards employers who get the details right and it is unforgiving for those who don’t. Strict dismissal rules, sector collective agreements and tightening enforcement around false self-employment make it a market where an experienced partner matters most.
“What clients tell us they value most is the speed combined with the confidence that nothing has been missed. We can have someone compliantly employed in Spain very quickly – payslips, social security registration and the collective agreement all handled. They get to focus on the hire; we take care of the paperwork that keeps them on the right side of the authorities.”
—Janneke Vossen, HR Consultant at ThisWorks
Dedicated Spain Specialist
You get a named point of contact who knows Spanish employment law inside out — real answers from a specialist, not a ticket in a queue.
Work & Residence Permit Support
We handle Spanish work and residence permits end to end — a service not every EOR covers — so you can relocate international talent or hire non-EU nationals.
Fast onboarding
Once complete documentation is provided, we can onboard within days — no waiting for entity setup, Seguridad Social registration or lengthy admin.
Pan-Country capability
Beyond Spain, ThisWorks supports compliant hiring across Germany, the UK, the Netherlands, Poland and South Africa — a single partner for multi-country workforce growth.
Transparent pricing
One clear monthly fee per employee, with no hidden costs. You’ll know exactly what you’re paying for before you commit to hiring in Poland.
Falso Autónomo Specialists
We help companies move Spanish freelancers into compliant employment as enforcement of false self-employment under Article 8.1 of the Estatuto de los Trabajadores tightens.
Spain EOR FAQs
What is an Employer of Record in Spain?
An EOR is a third party that becomes the legal employer of your staff in Spain — handling contracts, social security, income tax and payroll — while your team manages the employee’s day-to-day work.
Do I need to set up a S.L. to hire employees in Spain?
No. An EOR lets you employ people in Spain compliantly without incorporating a Spanish company (such as S.L), saving the 4-8 week set-up and the ongoing accounting and reporting costs.
What are Seguridad Social contributions and how does an EOR manage them?
They are Spain’s mandatory social security contributions, covering pensions, unemployment and more. The EOR registers, calculates and remits the contributions each month on your behalf.
What is falso autónomo and why is it a risk for my company?
Falso autónomo or “false self-employment” is a situation where a contractor is, in substance, an employee. Spanish authorities are increasing auditing and consequences for this, and possible misclassification can trigger backdated contributions, tax liabilities and penalties. An EOR removes the risk of financial and reputational damage by employing the person in accordance with Spanish law.
How do fixed-term contracts work in Spain after the 2021 labour reform?
Can I transition my Spanish freelancers to EOR employment?
How does dismissal law work in Spain?
Dismissing a permanent employee always requires a valid reason, set out in writing. There are two main grounds: disciplinary dismissal for serious misconduct ( no severance if the cause is upheld), and objective dismissal, which carries statutory severance of 20 days’ salary per year of service ( capped at 12 monthly payments) plus 15 days of notice. In case of dismissal claimed unfair by the labour court serious compensation must be given to the employee by the employer.
How long does it take to hire through an EOR in Spain?
The onboarding can be completed as fast as a few days after the necessary information is provided
What are the total employer costs in Spain?
Your total cost is made up of a few parts: the employee’s gross salary, the employer’s social security contributions on top of that, and the EOR’s monthly service fee. The exact amount depends on a salary, the role and the applicable contract, so we provide a clear, all-in quote up front with no hidden extras.
Hire in Spain with ThisWorks
Hiring in Spain doesn’t need to be complex. Social security contributions, collective-agreement obligations, Spanish-language contracts and full compliance with the local labour law are all handled for you by us, so you can start hiring in days, not weeks, without a local entity.
HR Consultant at ThisWorks
“You don’t need a Spanish entity, an accountant or months of set-up to hire brilliant people in Spain. We handle the compliance from day one — social security, income tax, the collective agreement, all of it, so you can focus on what matters the most – international growth of your company”
