
Lucas Botzen
Founder & Managing Director
Last updated:
September 21, 2025
What is an Employer of Record in Spain?
View our Employer of Record servicesAn Employer of Record (EOR) in Spain is a company that legally hires employees on your behalf. This means you can build a team in Spain without setting up a local entity, which can be a complex and time-consuming process. The EOR handles all the administrative and legal aspects of employment, such as contracts, payroll, taxes, and benefits, ensuring compliance with Spanish labor laws. You maintain control over your employees' day to day work and responsibilities. For companies looking to hire in Spain, an EOR like Rivermate can simplify the process.
How an Employer of Record (EOR) Works in Spain
Using an EOR to hire in Spain follows a straightforward process. Here are the typical steps:
- Select an EOR Provider You choose an EOR that operates in Spain and fits your company's needs.
- Define the Role You determine the job description, responsibilities, and compensation for your new employee.
- The EOR Handles Onboarding The EOR takes over the formal hiring process. This includes drafting a legally compliant employment contract that meets Spanish regulations.
- Employee Registration The EOR registers your employee with the necessary Spanish authorities, including the social security and tax offices.
- Payroll and Benefits Administration The EOR manages all aspects of payroll, including tax withholdings and social security contributions. They also administer employee benefits in line with Spanish law.
- Ongoing Compliance The EOR stays up to date with any changes in Spanish labor laws to ensure ongoing compliance.
Benefits of Using an EOR for Hiring in Spain
Using an EOR to hire in Spain offers several advantages. It allows you to access the Spanish talent pool quickly and efficiently, without the legal and financial hurdles of establishing a local entity.
- Faster Onboarding You can hire and onboard new employees in a fraction of the time it would take to set up a legal entity in Spain.
- Reduced Administrative Burden The EOR handles all HR-related administrative tasks, freeing you to focus on your core business operations.
- Compliance with Local Laws EORs have expertise in Spanish labor laws, reducing the risk of non-compliance and potential penalties.
- Cost-Effective It is generally more affordable to use an EOR than to establish and maintain a legal entity in Spain.
Responsibilities of an Employer of Record
As an Employer of Record in Spain, Rivermate is responsible for:
- Creating and managing the employment contracts
- Running the monthly payroll
- Providing local and global benefits
- Ensuring 100% local compliance
- Providing local HR support
Responsibilities of the company that hires the employee
As the company that hires the employee through the Employer of Record, you are responsible for:
- Day-to-day management of the employee
- Work assignments
- Performance management
- Training and development
Costs of using an Employer of Record in Spain
Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Spain includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Spain.
Employ top talent in Spain through our Employer of Record service
Book a call with our EOR experts to learn more about how we can help you in Spain







Book a call with our EOR experts to learn more about how we can help you in Spain.
Trusted by more than 1000 companies around the globe
Hiring in Spain
Hiring in Spain can be a great move for your company. The country has a strong talent pool with a growing number of professionals in tech and other industries. You'll find a workforce that is adaptable and often bilingual. Keep in mind that Spain has strong labor laws that protect employees, so it's important to understand your obligations before you start the hiring process.
Employment contracts & must-have clauses
In Spain, you can use verbal or written employment contracts, but written contracts are standard practice. Certain types of contracts, like temporary or part-time agreements, must be in writing. Indefinite (permanent) contracts are the most common and are encouraged under Spanish law.
Here are some clauses you'll want to include in your employment contracts:
- Party details: Full names and addresses of both the employer and employee.
- Job details: A clear description of the role and responsibilities.
- Contract type: Specify if the contract is permanent or for a fixed term.
- Start date: And an end date for temporary contracts.
- Probation period: The length of the trial period.
- Working hours: Details on the work schedule.
- Salary and compensation: A breakdown of the salary and any additional pay.
- Benefits: Information on any extra benefits provided.
- Overtime policy: How overtime is handled.
Probation periods
Probation periods in Spain give you a chance to see if a new hire is a good fit. During this time, either you or the employee can end the contract without notice. The length of the probation period can vary depending on the collective bargaining agreement.
Here's a general guide to probation period lengths:
Employee Type | Maximum Probation Period |
---|---|
Qualified technical employees | 6 months |
Other employees | 2 months |
Companies with fewer than 25 employees | 3 months for unqualified employees |
Working hours & overtime
The standard workweek in Spain is 40 hours, with a maximum of 9 hours per day. A proposal to reduce the standard workweek to 37.5 hours is expected to pass in 2025.
- Overtime: Overtime is limited to 80 hours per year.
- Compensation: You must compensate employees for overtime with either extra pay or time off.
- Rest periods: Employees get a minimum of 1.5 uninterrupted rest days per week.
Public & regional holidays
Spain has a mix of national, regional, and local public holidays. Each municipality can have up to 14 public holidays per year. Nine of these are national holidays, and at least two are chosen locally.
Some of the national public holidays for 2025 include:
- January 1: New Year's Day
- January 6: Epiphany
- April 18: Good Friday
- May 1: Labour Day
- August 15: Assumption of Mary
- October 12: Spain's National Day
- November 1: All Saints' Day
- December 6: Constitution Day
- December 8: Immaculate Conception
- December 25: Christmas Day
Keep in mind that regional holidays vary, so it's a good idea to check the specific holidays for the region where your employee is based.
Hiring contractors in Spain
You can hire independent contractors, known as autónomos, in Spain. They manage their own taxes and social security contributions. This can be a flexible option for project-based work.
However, you need to be careful about employee misclassification. If you treat a contractor like an employee by controlling their work hours and tasks, you risk them being reclassified as an employee. This can lead to penalties, including back payments for social security and taxes.
An Employer of Record (EOR) can help you avoid these risks. An EOR hires employees on your behalf, taking on the legal responsibility for compliance with Spanish labor laws. This way, you can build your team in Spain without the risk of misclassification.
Compensation and Payroll in Spain
Navigating payroll in Spain means understanding a system shaped by national laws, regional rules, and collective bargaining agreements. These agreements, known as convenios colectivos, are important and regulate things like salary ranges and working hours for specific jobs. This guide will walk you through the key things you need to know to pay your team in Spain.
Payroll cycles & wage structure
In Spain, you typically pay your employees monthly. A unique feature of Spanish payroll is the 14-month salary structure. This means employees receive 12 monthly payments plus two extra payments, usually in July and December. Some companies choose to prorate these extra payments, spreading them across the 12 regular monthly paychecks.
Overtime & minimums
The Spanish government sets a national minimum wage each year, called the Salario Mínimo Interprofesional (SMI). For 2025, the minimum wage is €1,184 per month, based on 14 payments. Collective agreements can establish higher minimums for certain sectors.
A standard workweek is 40 hours. Any hours worked beyond this are considered overtime and must be compensated, often at a rate of 175%. There is a cap on overtime, with a maximum of 80 additional hours per employee per year.
Employer taxes and contributions
As an employer in Spain, you are responsible for making several social security contributions on behalf of your employees. These contributions fund pensions, healthcare, unemployment benefits, and more.
Contribution | Employer Rate | Notes |
---|---|---|
Social Security (General) | 23.6% | Covers pensions, maternity leave, and illnesses. |
Unemployment | 5.5% | Funds unemployment benefits. |
Salary Guarantee Fund (FOGASA) | 0.2% | Protects employees' pay in case of company insolvency. |
Vocational Training | 0.6% | Supports professional training programs. |
Intergenerational Equity Mechanism (MEI) | 0.67% | A newer contribution to support the pension system. |
Employee taxes and deductions
Employees also contribute to the social security system and pay income tax, which you withhold from their paychecks.
Contribution | Employee Rate | Notes |
---|---|---|
Social Security (General) | 4.7% | Employee's share for pensions and other benefits. |
Unemployment | 1.55% | Employee's contribution to unemployment funds. |
Vocational Training | 0.1% | Employee's share for training programs. |
Intergenerational Equity Mechanism (MEI) | 0.13% | Employee's portion of the pension support contribution. |
Income Tax (IRPF) | Progressive Rates | Withheld from the employee's salary. |
€0 – €12,450 | 19% | Rates can vary by autonomous region. |
€12,451 – €20,200 | 24% | |
€20,201 – €35,200 | 30% | |
€35,201 – €60,000 | 37% | |
€60,001 – €300,000 | 45% | |
More than €300,000 | 47% |
How an Employer of Record, like Rivermate can help with payroll taxes and compliance in Spain
An Employer of Record (EOR) manages monthly payroll calculations, employer contributions, and tax filings in-country on your behalf. Rivermate handles registrations, payslips, statutory reporting, and remittances to authorities so you stay compliant with local rules and deadlines—without setting up a local entity. Our specialists monitor regulatory changes and ensure correct rates, thresholds, and caps are applied to every payroll cycle.
Loading calculator...
Benefits and Leave in Spain
In Spain, your employee benefits package and leave policies are key to attracting and keeping top talent. The country's labor laws provide strong protections for workers, including generous leave allowances and a robust social security system. Understanding these regulations is the first step to building a competitive and compliant benefits plan for your Spanish team.
Statutory leave
Spanish law mandates several types of paid leave to support employees' well-being and work-life balance.
- Annual leave: You must provide a minimum of 30 calendar days of paid vacation per year, which is equivalent to 22 working days. This leave cannot be replaced by payment, so you need to encourage your team to take their time off.
- Maternity and Paternity leave: Both parents are entitled to 16 weeks of leave, with the first 6 weeks to be taken immediately after the child's birth. The remaining 10 weeks can be used at any time until the child is one year old.
- Sick leave: Employees can take up to 18 months of sick leave. The payment during this time comes from social security. For the first 3 days, the employee is not paid. From day 4 to 20, they receive 60% of their regular pay, and from day 21 onwards, this increases to 75%.
Public holidays & regional holidays
Spain has a number of national public holidays, and each autonomous community also has its own regional holidays. In total, employees receive about 14 paid public holidays each year.
Date | Holiday | National/Regional |
---|---|---|
January 1 | New Year's Day | National |
January 6 | Epiphany | National |
February 28 | Day of Andalusia | Regional (Andalusia) |
March 1 | Day of the Balearic Islands | Regional (Balearic Islands) |
March 19 | St. Joseph's Day | Regional (Murcia, Valencia) |
April 17 | Maundy Thursday | National (except Catalonia & Valencia) |
April 18 | Good Friday | National |
April 21 | Easter Monday | Regional (some regions) |
April 23 | St. George's Day | Regional (Aragon, Castile and León) |
May 1 | Labour Day | National |
May 2 | Community of Madrid Day | Regional (Madrid) |
May 30 | Day of the Canary Islands | Regional (Canary Islands) |
May 31 | Day of Castile-La Mancha | Regional (Castile-La Mancha) |
June 9 | Day of La Rioja and Murcia | Regional (La Rioja, Murcia) |
August 15 | Assumption of Mary | National |
September 11 | National Day of Catalonia | Regional (Catalonia) |
October 9 | Day of the Valencian Community | Regional (Valencia) |
October 12 | Hispanic Day | National |
November 1 | All Saints' Day | National |
December 6 | Constitution Day | National |
December 8 | Immaculate Conception | National |
December 25 | Christmas Day | National |
Typical supplemental benefits
While the statutory benefits in Spain are comprehensive, many companies offer additional perks to stand out.
Statutory Benefits | Non-Statutory (Supplemental) Benefits |
---|---|
Social Security (healthcare, pension, unemployment) | Private health insurance |
Workers' compensation | Supplemental retirement plans |
Paid annual, sick, maternity, and paternity leave | Additional paid time off |
13th and 14th-month pay (pro-rated and paid throughout the year or as lump sums) | Meal vouchers |
Childcare vouchers | |
Gym memberships | |
Company car or transportation allowance |
How an EOR can help with setting up benefits
Setting up a benefits plan in a new country can be complex. An Employer of Record (EOR) simplifies this process for you. We handle the administrative and legal requirements of managing employee benefits in Spain.
An EOR can:
- Ensure your benefits package complies with Spanish labor laws.
- Administer both statutory and supplemental benefits for your employees.
- Manage payroll and social security contributions.
- Provide local expertise on competitive benefits packages.
By partnering with an EOR, you can offer your Spanish employees a comprehensive and compliant benefits plan without the need to establish a local legal entity. This allows you to focus on growing your business while we take care of the HR details.
How an Employer of Record, like Rivermate can help with local benefits in Spain
Rivermate provides compliant, locally competitive benefits—such as health insurance, pension, and statutory coverages—integrated into one EOR platform. We administer enrollments, manage renewals, and ensure contributions and withholdings meet country requirements so your team receives the right benefits without added overhead.
Termination and Offboarding in Spain
Ending a working relationship in Spain involves clear, specific steps. You must follow legal procedures to ensure a fair and compliant process. This involves providing written notice, justifying the termination, and paying the correct severance. The process depends on the reason for the dismissal, which can range from disciplinary issues to economic reasons.
Notice periods
When you terminate an employee for objective reasons, such as economic or organizational changes, you must provide at least 15 days' notice. You need to give this notice in writing, clearly stating the reasons for the termination and the effective date. If you prefer, you can pay the employee their salary for the notice period instead of having them work.
For disciplinary dismissals due to serious misconduct, you do not have to provide a notice period. However, you still need to deliver a written termination letter explaining the reasons for the dismissal.
Severance pay
The amount of severance pay depends on the type of termination.
Type of Dismissal | Severance Pay |
---|---|
Objective Dismissal | 20 days' salary for each year of service, up to a maximum of 12 months' pay. |
Unfair Dismissal | 33 days' salary for each year of service, up to a maximum of 24 months' pay. |
Disciplinary Dismissal | No severance pay is required if the dismissal is justified. |
It is important to calculate and provide the severance payment at the time of giving the notice for an objective dismissal.
How Rivermate handles compliant exits
When you partner with us, we manage the entire offboarding process for you. We make sure every termination is handled in a compliant and professional manner.
Here’s how we help:
- Documentation: We prepare and handle all necessary legal documents, including the termination letter.
- Compliance: We ensure that every step follows Spanish labor laws, from notice periods to severance calculations.
- Communication: We help you communicate the decision clearly and respectfully to your employee.
- Final Settlement: We manage the final payment, known as the finiquito, which includes any outstanding salary, unused vacation days, and severance.
We take on the administrative and legal burdens so you can focus on your business. We help you navigate the complexities of Spanish employment law to ensure a smooth and fair exit process for everyone involved.
Visa and work permits in Spain
Navigating the world of visas and work permits in Spain can feel complicated. Put simply, if you are not a citizen of the European Union, Iceland, Liechtenstein, Norway, or Switzerland, you will need a permit to legally work in the country. For citizens of these countries, the process is more straightforward, only requiring registration with the local authorities if you plan to stay for more than three months. For everyone else, securing the right authorization before you start working is essential. The Spanish government offers several pathways to employment, depending on your situation.
Employment visas & sponsorship realities
When it comes to hiring talent from outside the EU, you have a few options. An Employer of Record (EOR) can simplify this process significantly.
An EOR can sponsor visas for non-EU nationals, which is a great solution if you don't have a legal entity in Spain. This typically works best for certain types of visas:
- Highly Qualified Professional Visa: This is for specialists with a qualified job offer.
- EU Blue Card: This is an option for professionals with advanced qualifications.
An EOR takes on the legal responsibilities of employment, including payroll, taxes, and compliance with Spanish labor law. This means you can hire talent in Spain without the headache of setting up a local company.
However, there are some routes an EOR typically can't support, such as the self-employment visa, which is designed for freelancers and entrepreneurs who want to start their own business in Spain.
Business travel compliance
If you need to travel to Spain for short-term business activities, you might not need a visa. For stays of up to 90 days in a 180-day period, you can typically attend meetings, conferences, and negotiations without a permit.
However, it is crucial to understand that these short-term visits do not allow you to engage in any paid work. The activities are limited to things like:
- Attending business meetings
- Visiting clients
- Going to trade shows
- Receiving training
If your activities in Spain go beyond this, you will likely need a specific short-term work visa. Always check the specific requirements before you travel to ensure you are compliant with Spanish immigration rules.
How an Employer of Record, like Rivermate can help with work permits in Spain
Navigating work permits can be complex and time‑sensitive. Rivermate coordinates the entire process end‑to‑end: determining the right visa category, preparing employer and employee documentation, liaising with local authorities, and ensuring full compliance with country‑specific rules. Our in‑country experts accelerate timelines, minimize refusals, and keep you updated on each milestone so your hire can start on time—legally and confidently.
Frequently asked questions about EOR in Spain
About the author

Lucas Botzen
Lucas Botzen is the founder of Rivermate, a global HR platform specializing in international payroll, compliance, and benefits management for remote companies. He previously co-founded and successfully exited Boloo, scaling it to over €2 million in annual revenue. Lucas is passionate about technology, automation, and remote work, advocating for innovative digital solutions that streamline global employment.