Hire employees in Spain with an Employer of Record
Hiring in Spain through an EOR does not require setting up a local legal entity. EuroDev becomes the legal employer running payroll and compliance while you keep full operational control.
How hiring in Spain through EuroDev works
An Employer of Record lets your company hire in Spain without establishing a Spanish subsidiary or branch. EuroDev becomes the legal employer, while your company retains day-to-day operational direction.
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2–4
weeks
Typical hiring timeline: employees can usually be onboarded within a few weeks, depending on role complexity and documentation.
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Direct expansion vs. partner-led market entry
Both paths are legitimate - the right one depends on how fast you need to move and how permanent your presence in Spain will be.
When an EOR is the right choice
When a local entity makes sense
Permanent and fixed-term contract rules
Spain assumes employment is indefinite by default - incorrectly structured temporary contracts can be automatically reclassified as permanent.
Permanent (indefinite)
Fixed-term (temporary)
Spain has strong employee protection laws
Employment ”at will” does not apply when hiring through an EOR in Spain.
EuroDev guides you through termination procedures to ensure compliance.
Probation periods
Not mandatory, but must be agreed in writing. Without a collective agreement, probation may run up to six months for qualified technical roles and two months for others. Either party may terminate without notice or severance during a lawful probation.
Notice & severance in practice
Notice may be extended by contract or collective agreement, and payment in lieu is permitted. No notice is required for gross misconduct, and no severance is owed for valid disciplinary dismissals.
What hiring through an EOR costs in Spain
Employer costs typically run around 29.90% on top of gross salary - covering all mandatory employer charges and statutory contributions.
Estimated annual employment cost
Mandatory employer contributions
Social security registrations
Working hours & overtime
Statutory leave entitlements in Spain
EuroDev ensures every leave entitlement is tracked and administered correctly, from vacation days to parental leave.
Annual leave
Public holidays
Maternity leave
Paternity leave
Why companies choose EuroDev for EOR in Spain
Hire employees in Spain with confidence
EuroDev helps international companies hire in Spain quickly, compliantly, and without unnecessary risk whether you're onboarding your first employee or expanding an existing team.
What happens after you contact us? +
Contact us
Get in touch with our team of experts to identify the best PEO and EOR solutions for your needs in Spain today.
Our HR Outsourcing services provide you with the right helping hand to enable you to grow.
Monique Ramondt-Sanders
CCO & VP of HR Outsourcing
FAQ's
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Yes, you can hire employees in Spain without setting up a local legal entity by using an Employer of Record (EOR). The EOR acts as the legal employer in Spain, while your company manages the employee’s day‑to‑day work. This allows you to hire compliantly without incorporating a Spanish subsidiary.
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Hiring through an Employer of Record is significantly faster than setting up a legal entity. In most cases, employees can be onboarded within a few weeks, depending on the role, contract terms, and completion of required documentation.
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Employment contracts in Spain must be in writing if they last longer than four weeks. Contracts are generally presumed to be indefinite unless clearly defined as fixed‑term. When hiring through an EOR, the provider prepares a locally compliant contract that reflects Spanish labor law and applicable collective agreements.
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A PEO or EOR can support contractor engagement, but Spain has strict rules around worker classification. If a contractor operates under conditions similar to an employee, there is a risk of misclassification. Many companies choose an EOR employment model instead to reduce legal and financial risk.
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Payroll in Spain is typically processed monthly. It includes gross salary calculation, income tax withholding, employee social security contributions, and employer contributions. When hiring through an EOR, the provider runs payroll on your behalf and ensures all statutory payments are made correctly.
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Employees in Spain are usually paid on a monthly basis. Some collective agreements require additional payments, such as 13th or 14th-month salaries, which are common in Spain. An EOR ensures the payroll structure aligns with local requirements.
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Yes, a PEO or EOR manages income tax withholdings and both employee and employer social security contributions. This includes calculating amounts owed, submitting filings, and making payments to the relevant authorities.
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Yes, payroll in Spain is run in euros (EUR). Employees are paid locally in EUR, while the EOR can invoice your company in an agreed currency, depending on your commercial arrangement.
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Yes, using an Employer of Record is legal in Spain when structured correctly. The EOR must act as the formal employer, comply with labor law, and meet all registration and reporting obligations. Reputable EOR providers operate fully within Spanish legal frameworks.
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All Spanish labor laws apply, regardless of whether the hiring company is foreign or local. This includes rules on contracts, working hours, termination, severance, paid leave, and social security. An EOR ensures these laws are applied correctly from day one.
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Misclassification can lead to back payments of social security contributions, fines, penalties, and potential claims from workers. Spain is particularly strict on employment status. Using an EOR reduces this risk by placing the employee in a compliant employment structure.
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A PEO or EOR ensures compliance by:
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Issuing legally compliant employment contracts
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Registering employees with social security and employment authorities
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Applying correct tax and contribution rates
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Monitoring labor law changes and collective agreements
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Managing termination and severance processes correctly
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This significantly reduces legal and operational risk for foreign employers.
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