Hire in Spain

Employer of record in Spain

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Spain, an employer of record may be the best option for achieving your global growth objectives. 

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Spain―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity. 

Learn about the hiring, employment, and benefits requirements for workers in Spain and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in Spain

Top companies from around the world have recognized the advantages of hiring in Spain, but its labor regulations can be complex. Employment relationships in Spain are governed by the Workers' Statute (Estatuto de los Trabajadores), the General Law on Social Security (Ley General de la Seguridad Social), and various statutory instruments, as well as collective agreements and individual contracts. The Workers' Statute serves as the primary legal framework, outlining workers' rights, employer obligations, and procedures for labor disputes.​

Additionally, Spanish law places specific regulations on the use of temporary and agency workers. The Law on Temporary Employment Agencies (Ley de Empresas de Trabajo Temporal) ensures that agency workers receive equal treatment in terms of basic working and employment conditions. Employers must provide written employment contracts detailing terms and conditions, and ensure compliance with statutory requirements such as the minimum wage and working time regulations.​

Because of the complexity of Spain's labor and tax laws, compliant employment contracts are a critical business requirement. With Safeguard Global as your partner, you can hire employees in Spain with confidence, knowing that every contract meets legal standards. We also provide guidance on cultural expectations and hiring best practices, while helping you stay current with regulatory changes.

Employment laws and contracts

Employment contracts

In Spain, employment contracts can be fixed-term or permanent, depending on the nature of the job and the agreement between the employer and employee. Permanent employment contracts must include benefits such as paid vacation, social security contributions, severance pay, and unemployment benefits. Fixed-term employees are entitled to the same benefits as permanent employees, and misuse of fixed-term contracts can result in them being deemed permanent.

Spain also has apprenticeship contracts, mainly for training, which are governed by labor laws and regulations. Employers engaging apprentices are required to:

• Provide structured training aligned with approved curricula
• Pay apprentices a stipend in line with government regulations
• Ensure apprentices work in a safe environment
• Adhere to regular working hours as defined by labor standards

Probationary period

In Spain, probation periods are indirectly addressed in local law. In general, they do not exceed two months in the private sector and six months for technical positions. Probabtion periods for government roles are comparable to those for the private sector, as per the Workers’ Statute.

Termination and notice periods

In Spain, statutory laws generally require a 15-day written notice for termination due to objective causes, or salary in place of notice. In most cases, terminated employees are entitled to a warning and a fair hearing. Just cause for a dismissal includes the following:

• Repeated and unjustified absences
• Indiscipline or disobedience
• Verbal or physical offenses
• Breach of contractual good faith
• Decrease in work performance
• Substance abuse
• Harassment

Employees terminated for objective reasons are entitled to severance pay of 20 days' wages per year of service, up to a maximum of 12 months. As your Employer of Record (EOR) in Spain, we can assist you in managing employee terminations by providing legal guidance and a personalized process to ensure compliance with labor laws and minimize legal risks.

Working hours and overtime

The standard working week in Spain typically consists of 40 hours, spread across five days, with a legal maximum of nine hours per day and 40 hours per week on average, calculated over a reference period of one year. Employees are entitled to 12 consecutive hours of rest between working days and one and a half days off per week, typically including Sunday.

Any work beyond the standard working time is considered overtime. Spanish law limits overtime to 80 hours per year, excluding hours compensated with equivalent rest. While there is no fixed overtime rate under national law, collective agreements often require overtime to be paid at a premium or compensated with time off in lieu.

Pay and benefits

When negotiating terms of an employment contract with a candidate in Spain, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Minimum wages and salary benchmarks

Minimum wage rates in Spain are set nationally. As of January 1, 2025, the monthly minimum wage is €1,381.30 EUR, equating to €16,576 EUR annually, based on 12 payments per year. ​

The minimum wage applies uniformly across sectors, ensuring fair compensation regardless of industry.​

The overall annual average salary in Spain is approximately €24,905 EUR, with monthly earnings varying significantly by position, experience, and region. The median monthly salary is estimated to be around €2,075 EUR. ​

By gender, a wage gap exists with average annual salaries for men typically exceeding those for women. Efforts to reduce this disparity continue through targeted government initiatives and policy reforms.​

Looking at salary by location in Spain

• Madrid: Known for offering salaries above the national average, particularly in sectors such as finance, technology, and healthcare
• Barcelona: Offers competitive compensation in industries like tourism, education, and information technology, with wages generally reflecting the local cost of living
• Seville: While salaries in Seville are competitive, certain sectors may offer compensation slightly below the national average, influenced by regional economic factors​
• As your employment partner in Spain, Safeguard Global can provide you with the latest resources and insights on average employee compensation across various roles and regions, ensuring that you make competitive and compliant employment offers.

Payroll frequency

In Spain, employees are typically paid on a monthly basis, with salaries disbursed at the end of each month, as specified in the employment contract or collective bargaining agreement. Spanish labor law mandates that remuneration must be paid at least once a month, ensuring regular income for employees. ​

In addition to regular monthly wages, employees may receive additional compensation such as the 13th- and 14th-month salaries, commonly paid in July and December. These payments are often stipulated in collective bargaining agreements or internal company policies and are disbursed according to the terms outlined therein. Employers are required to adhere to the agreed-upon schedules for these payments to maintain compliance with labor regulations.

Bonuses and additional payments

In Spain, employers are legally required to provide employees with two annual bonus payments, commonly referred to as the 13th- and 14th-month salaries. Each bonus is equivalent to one month's salary and is typically paid in July and December. These payments are considered part of the employee's regular remuneration and are subject to income tax. Employers may choose to prorate these bonuses across the twelve monthly salary payments, provided this arrangement is agreed upon in the employment contract or collective bargaining agreement.

Employee benefits

Employers in Spain are required to provide several statutory benefits under national labor law.

• Social security contributions (Seguridad Social): Employers contribute approximately 29.9% of the employee’s gross salary to cover pensions, unemployment, disability, and healthcare.

• Sick leave (Incapacidad Temporal): Employees receive up to 60% of their salary from the 4th to the 20th day of illness, and 75% thereafter, funded by social security and topped up by some employers.

• Parental leave (Permiso por Maternidad/Paternidad): Both parents are entitled to 16 weeks of paid leave, with full wage coverage provided by social security. Additional unpaid parental leave is available until the child turns 12.

• Holiday entitlement (Vacaciones): Employees are entitled to a minimum of 30 calendar days (or 22 working days) of paid annual leave, excluding national and regional public holidays.

Many employers also offer supplemental benefits, such as meal vouchers, private health insurance, flexible schedules, or transportation allowances. These additional benefits help improve retention and employer branding.

As your Employer of Record in Spain, we help design compliant and competitive benefit packages that align with statutory obligations and local market expectations.

Tax and social contributions

Income tax and employee deductions

In Spain, withholding tax is known as Impuesto sobre la Renta de las Personas Físicas (IRPF) and is deducted by employers before paying salaries to employees. Employers must deduct IRPF from employee salaries based on applicable income tax rates and submit it to the Spanish tax agency (Agencia Tributaria).

Employer payroll contributions

Spain's social security system requires employer contributions that are dependent on the total number of employees, and these contributions cover pensions, medical care, disability insurance, and gratuity payments. In addition, workers' compensation is financed by contributions from state governments, employers, and employees. ​

Business tax and compliance

Employers in Spain must adhere to various taxation and regulatory compliance requirements to operate legally and avoid penalties.​

• Corporate tax: Companies are taxed at a standard rate of 25%. Small companies with turnover less than €1 million EUR benefit from a reduced rate of 23%. ​
• Value added tax (VAT): VAT applies to all businesses regardless of turnover. Employers must register, file monthly or quarterly returns, and pay VAT on applicable goods and services. ​
• Withholding tax: Employers must deduct withholding tax from employee salaries, vendor payments, and contractor fees. Withholding tax must be deposited by the 20th of the following month, and periodic returns must be filed.​
• Income tax returns (ITR): ITRs are filed annually based on company profits. Companies must also file annual financial statements with the Spanish tax authorities.

Work visas and immigration

Programs for foreign workers

In Spain, hiring foreigners without valid work permits can result in fines ranging from €501 EUR to €10,000 EUR per worker, legal action, or suspension of business activities. The Spanish government enforces strict regulations to ensure employment opportunities are first available to Spanish citizens unless specialized skills are required. Therefore, Spain has structured skilled migration programs for foreigners, with provisions for highly skilled professionals in sectors like engineering, healthcare, information technology, and finance. Certain workers may apply for a Spanish employment visa.​

• Highly Qualified Professional (HQP) Visa: For professionals with advanced degrees and job offers in Spain
• EU Blue Card: For non-EU nationals with high qualifications and a binding job offer
• Intra-Company Transfer (ICT) Visa: For employees transferred within the same company to a Spanish branch​

Foreigners may also apply for a Short-Term Business Visa, which is issued for attending meetings, conferences, or training sessions in Spain. It does not permit full-time employment in a Spanish company.

Sponsorship and employer responsibilities

Hiring a foreign national in Spain requires compliance with immigration and labor regulations. Employers must ensure that both the position and the candidate meet the criteria defined by the Spanish immigration authorities and the Ministry of Inclusion, Social Security and Migration.

Eligibility criteria

• The role must align with the applicant’s qualifications and, if applicable, be listed as a shortage occupation.
• The candidate must present recognized vocational or academic credentials.
• The employer must offer a binding employment contract with equitable working conditions.

Required documentation

• Job offer or signed employment contract specifying salary, duties, and workplace
• Recognition of foreign qualifications
• Proof of salary meeting national or Blue Card thresholds
• Completed visa application forms and biometric passport
• Medical certificate and criminal record check
• Authorization from the Spanish labor authorities, if required

Post-arrival requirements

• Application for a Foreigner Identity Card (TIE) at the local Foreigner's Office within 30 days of arrival
• Registration with the local municipality (Empadronamiento)
• Enrollment in the Spanish social security system
• Employers must report employment changes and maintain personnel documentation for inspection

Processing times and costs

Once a person has applied for a Spanish employment visa, the processing time varies, but it typically ranges from four to 12 weeks. ​

The fees for an employment visa vary based on the applicant's nationality and the duration of the visa. ​

United States citizens

• Employed work visa: €167 EUR​

• Self-employed work visa: €238​ EUR

United Kingdom citizens

• Employed work visa: €100 EUR​

• Self-employed work visa: €674 EUR​

Other nationalities

• Employed work visa: €80 EUR​

• Self-employed work visa: €80 EUR​

Additional fees, such as service charges and delivery fees, may apply. Check with the specific Spanish consulate or embassy for the most accurate and up-to-date fee structure.

Leave and public holidays

Annual leave and paid time off

In Spain, employees are entitled to paid vacation leave as outlined by the workers' statute (Estatuto de los Trabajadores). The statutory minimum entitlement is 30 calendar days per year for full-time employees, which typically translates to 22 working days. This leave is fully paid and must be scheduled in mutual agreement between the employer and employee. 

Employers may offer additional leave beyond the statutory minimum as part of collective agreements or employment contracts, but this is not legally required. 

Unused statutory leave must be taken within the calendar year. Carrying over leave is permitted only if justified by exceptional circumstances — such as extended illness — and must be used within 18 months of the original entitlement year. Payment in lieu of unused leave is allowed only when the employment relationship ends.

Public holidays

Employees are entitled to several paid public holidays.

• Jan. 1: New Year’s Day
• Good Friday
• May 1: International Workers’ Day
• Aug. 15: Feast of the Assumption
• Oct. 12: Spanish National Day
• Nov. 1: All Saints’ Day
• Dec. 6: Spanish Constitution Day
• Dec. 25: Christmas Day

The national calendar includes 14 public holidays per year, of which eight are set by the national government, while four are designated by each autonomous community, and two by local municipalities. When a public holiday falls on a weekend, regional or local authorities may allow it to be moved to a weekday. Employees are not entitled to substitute days off unless specified in the applicable collective agreement or employer policy.

Sick leave

Personal and sick leave are governed by the General Social Security Law. Employees receive sick pay starting from the fourth day of illness, funded by social security. The benefit amounts to 60% of the employee's salary from days four to 20, and 75% from day 21 onwards, for a maximum duration of 365 days, extendable by 180 days in certain cases.

Parental leave

Employers must provide 16 weeks of paid leave to each parent following the birth, adoption, or fostering of a child, with additional weeks granted in cases of multiple births or disabilities, as stipulated by national regulations. Employees who have contributed to the Spanish social security system for the required period are eligible for benefits, with written notice and necessary documentation submitted prior to the commencement of leave.​

Hiring and talent management

Commonly recruited roles

Global companies operating in Spain frequently hire for roles that support digital transformation, multilingual services, and international operations. Employees are commonly recruited for several types of roles.

• Software developers and IT specialists: Manage infrastructure, cybersecurity, and custom software applications
• Customer support representatives: Deliver multilingual support to clients across Europe and Latin America
• Finance and accounting professionals: Handle audits, tax compliance, and financial reporting under Spanish GAAP
• Sales and marketing specialists: Drive campaigns, lead generation, and brand positioning across Iberian and global markets
• Human resources and admin coordinators: Oversee onboarding, labor documentation, and internal policy implementation
• Legal and compliance officers: Ensure adherence to EU data protection, labor, and tax regulations
• Renewable energy technicians: Support Spain’s growing solar and wind energy sectors through project design and maintenance

As your Employer of Record in Spain, we can help you access experienced, Spanish-speaking professionals and onboard top talent efficiently and compliantly.

Languages

Spain is a multilingual workplace environment, with Spanish and regional languages used across industries. While Spanish dominates corporate settings, regional languages are widely spoken in government and business sectors, particularly in Catalonia, the Basque Country, and Galicia. Workplaces often operate in a bilingual or multilingual manner, depending on the industry and region.​

In corporate sectors like IT and finance, Spanish is the primary language for communication, documentation, and client interactions, especially in multinational companies. Meetings, presentations, and official emails are generally conducted in Spanish, though employees may use regional languages informally.​

In government offices and public sector organizations, Spanish and regional languages are commonly used for internal communication and documentation. Spain recognizes several co-official languages, with autonomous communities prioritizing their regional languages — such as Catalan in Catalonia, Basque in the Basque Country, and Galician in Galicia.​

The manufacturing and retail sectors rely on local languages for daily operations, especially in labor-intensive industries. Factories, warehouses, and construction sites primarily use Spanish or regional languages, while management-level communication may be in Spanish.​

In customer service, language use depends on clientele. Spanish is common for domestic and international customer support, while many companies also hire speakers of Catalan, Basque, Galician, and other regional languages to cater to regional customers.

Education level

The Spanish workforce comprises individuals with diverse education levels, ranging from basic schooling to advanced degrees. Education levels vary by industry, job role, and region, with skilled and unskilled workers contributing to different sectors of the economy.

• Unskilled and semi-skilled jobs (agriculture, construction, retail, informal sector): Primary (Educación Primaria) or secondary (ESO)
• Skilled trade and technical jobs (manufacturing, automotive, electrical, construction): Vocational training (FP), polytechnic diploma, Bachillerato
• Entry-level corporate and service sector jobs (clerical, sales, customer service): Bachelor's degree (BA, BCom, BSc) or Bachillerato
• IT and engineering jobs (software development, technical support, research and development): Bachelor's degree (BEng, BSc in computer science, IT, or electronics)
• Finance and business jobs (accounting, banking, consulting, corporate roles): Bachelor's or master's degree (BCom, MBA, Economista, CFA)
• Healthcare and life sciences jobs (medical, pharmaceuticals, biotechnology): Bachelor's or master's degree (MD, BPharm, MSc, MTech in biotechnology)
• Academia and research jobs (education, scientific research, government): Master's or PhD (MA, MSc, MPhil, PhD)

Recruitment trends and hiring considerations

The Spanish job market in 2025 reflects strong demand in digital transformation, healthcare, renewable energy, and skilled trades. Technology, tourism, and business services remain core drivers of hiring, while hybrid and remote work models continue to shape recruitment strategies.

Labor shortages in IT, nursing, and construction are influencing training initiatives and government-backed employment programs. Employers increasingly seek candidates with digital competencies, multilingual abilities, and role-specific certifications.

Cultural considerations include a preference for formal job applications, structured onboarding processes, and clear contractual agreements. As your local partner, we can help you navigate Spanish hiring practices, salary expectations, and legal requirements — ensuring a compliant and efficient recruitment process in Spain.

Workplace culture and business practices

Workplace norms and professional etiquette

Spanish workplace culture values relationship-building, open communication, and adaptability. While organizational hierarchies exist, collaboration and interpersonal trust play a key role in business practices.

Hierarchy and authority: Decision-making structures may be centralized, but input from team members is often encouraged. Titles are respected, but accessibility and informal exchanges with management are common.

Email and phone etiquette: Business emails often begin with polite greetings and may include a brief personal note. Clarity and courtesy are important. Phone conversations may involve small talk before transitioning to business topics.

Meeting etiquette: Punctuality is appreciated, though meetings may begin slightly late. Agendas can be flexible, allowing for open dialogue. Building rapport and consensus during discussions is valued over rushed decision-making.

Professional dress code: In corporate environments, attire tends to be business formal — such as tailored suits or dresses. In creative or tech sectors, business casual is widely accepted. Overall, style and personal presentation are important in Spanish workplaces.

Typical working hours and business customs

The standard workweek in Spain typically consists of 40 hours, spread over five days, with most employees working Monday to Friday. Standard hours are generally from 9:00 a.m. to 6:00 p.m., often including a midday break. Employees are entitled to at least one full day of rest per week, commonly on Saturday or Sunday. ​

Remote and hybrid work arrangements have become increasingly common across sectors like finance, tech, and professional services. Employers must ensure that remote employees adhere to working time regulations, receive appropriate rest periods, and are protected under Spanish employment law. ​

Flexible working requests are a statutory right for eligible employees and must be considered fairly. Any agreed changes to working hours or location must be confirmed in writing in line with Spanish labor regulations.

Key HR challenges and compliance risks

Spain's labor framework, primarily governed by the Workers' Statute, outlines comprehensive employer responsibilities. Recent reforms, such as the proposed reduction of the workweek to 37.5 hours and enhancements to digital disconnection rights, have added complexity to compliance efforts. Noncompliance can lead to significant penalties, legal disputes, and reputational harm. Frequent updates to tax legislation and compensation structures necessitate diligent HR practices, especially for organizations transitioning from an EOR arrangement to a locally registered entity.

Professional employer organization (PEO) vs. employer of record (EOR) in Spain

What is a PEO in Spain?

A professional employer organization (PEO) in Spain is a third-party service provider that manages human resources, payroll, compliance, and employee benefits for their workforce.

Challenges with a PEO model

While a professional employer organization (PEO) in Spain can streamline HR operations through a co-employment model, the client company retains certain legal liabilities. This arrangement typically necessitates establishing a local legal entity and managing aspects such as tax filings and employee benefits.

In contrast, an employer of record (EOR) assumes full legal responsibility for employment, enabling foreign companies to hire in Spain without setting up a local entity. The EOR manages payroll, taxation, compliance with labor laws, and statutory benefits, thereby reducing administrative burdens and legal risks.

EOR as an alternative to PEO

If you're interested in expanding into Spain and managing complex labor regulations or sector-specific agreements are among your top concerns, an employer of record (EOR) may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Spain — often in as little as two weeks — without having to take on the cost and risk of establishing a local entity.

Safeguard Global has more than 17 years' experience as an EOR in countries around the globe. As an EOR in Spain, we're experts in employment law, payroll processing, and benefits administration, ensuring your business operates smoothly and compliantly.

Entity setup in Spain

Setting up a local entity

While employers of record (EORs) provide a quick entry into Spain, establishing a legal entity is essential for companies planning large-scale operations, direct hiring, and full market control. The decision depends on growth plans, industry regulations, and cost considerations.

Safeguard Global can help you assess your growth plan and objectives and find the solution that best meets your needs. We're the only provider that grows with you.

Entity registration steps and timelines

Establishing a legal entity in Spain requires several steps, each involving specific documentation and regulatory approvals. The process begins with obtaining a Negative Name Certificate (Certificación Negativa del Nombre) from the Central Mercantile Registry to ensure the proposed company name is unique. Subsequently, a corporate bank account is opened, and the minimum share capital — €3,000 EUR for a Sociedad de Responsabilidad Limitada (S.L.) — is deposited. The bank provides a certificate confirming the deposit.​

Next, the company's articles of association are drafted, and the public deed of incorporation is signed before a notary. The deed, along with other required documents, is submitted to the Mercantile Registry (Registro Mercantil) for registration. Upon approval, the company is officially registered and receives its tax identification number (Número de Identificación Fiscal, NIF).​

After registration, businesses must register for tax purposes with the Spanish tax agency (Agencia Tributaria) and, if hiring employees, register with the General Treasury of the Social Security (Tesorería General de la Seguridad Social). Depending on the business activities, additional licenses or permits may be required.​

The entire incorporation process in Spain typically takes between three to six weeks, depending on the completeness of documentation and the efficiency of the relevant authorities.

Comparing EOR vs. entity setup

While EOR is a faster, low-risk option for market entry and small teams, entity setup is better suited for long-term growth and larger workforce expansion.

When EOR might better suit your needs:

• You need to hire employees quickly (one to two weeks).

• You don’t want to set up a legal entity and manage compliance.

• You are testing the Spanish market before making a long-term commitment.

• You plan to hire fewer than 50 employees in Spain.

• You need flexibility without significant investment.

When entity setup might better suit your needs:

• You want full business control and plan to operate long term.

• You need to sign contracts, open bank accounts, and own assets in Spain.

• You are hiring 50+ employees (EOR costs become unsustainable).

• You operate in a regulated industry requiring local registration.

• You want to protect your intellectual property under Spanish law.

Global workforce solutions

HR & Benefits solutions in Spain

We offer localized HR and benefits support in Spain, ensuring your workforce receives compliant and competitive offerings. This includes administration of statutory benefits (such as social security, health coverage, and retirement contributions), onboarding, leave tracking, and employee records management. Whether your team is remote or office-based, we help ensure alignment with Spanish labor regulations and market expectations.

Tax & Accounting solutions

Our team manages employer payroll tax calculations, income tax withholdings, and social contribution remittances in accordance with Spanish tax law. We also support corporate tax filings and ensure compliance with Agencia Tributaria and Seguridad Social reporting requirements.

Global Payments & Payroll Processing

We provide compliant multi-currency payroll processing and salary disbursements for Spanish employees and expatriates. Our services include real-time payment tracking, year-end tax documents, and transparent deductions — ensuring you stay compliant with Spanish wage and banking regulations.

Updated: May 2025

Partner with Safeguard Global as your Spain employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution to expand and hire in over 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Spain. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer: The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.