Spain is one of Europe’s most attractive destinations for international business expansion.
With a strong and diverse economy, highly skilled workforce, and strategic position connecting Europe, Africa, and Latin America, it offers unparalleled opportunities for companies across multiple sectors.
From Madrid’s finance and technology centers to Barcelona’s creative industries and Valencia’s logistics hubs, Spain provides fertile ground for growth.
However, expanding into Spain and hiring employees directly comes with challenges. Setting up a legal entity involves incorporation with the Mercantile Registry, tax registration with the Agencia Tributaria, and compliance with Spain’s complex labor laws and collective bargaining agreements (Convenios Colectivos). Payroll, social security contributions, and employee benefits require strict adherence to national and regional regulations.
Employer of Record in Spain services from INS Global allow you to bypass these complexities. Acting as your legal employer in Spain, we handle contracts, payroll, tax, benefits, and compliance, while you focus entirely on managing your team.
With almost two decades of experience in over 160 countries, we enable companies to enter the Spanish market quickly, securely, and in full compliance with local law.
The Strategic Advantage of Hiring in Spain
Spain combines economic opportunity with quality of life, making it a magnet for both domestic and international talent. Key advantages include:
- Strategic location: Gateway to Europe, Africa, and Latin America, with strong trade links and transport infrastructure.
- Highly educated workforce: Strong technical skills in engineering, IT, life sciences, and renewable energy.
- Diverse economy: Leading sectors include tourism, automotive, aerospace, pharmaceuticals, agriculture, and technology.
- Competitive labor costs compared to Western European averages, without sacrificing skill quality.
- Business-friendly incentives for R&D, renewable energy, and technology development.
With Employer of Record Spain solutions, you can take advantage of these strengths immediately, without the delays and costs of setting up your own subsidiary.
Understanding the Spanish Employment Framework
Spain’s labor market is governed by the Workers’ Statute (Estatuto de los Trabajadores), extensive health and safety legislation, and sector-specific collective agreements. Compliance requires careful attention to both national law and any applicable regional rules.
Employment Contracts
Written contracts are mandatory for most employment relationships. They must outline job role, salary, working hours, probation period (up to six months for qualified positions), and applicable Convenio Colectivo. Permanent and fixed-term contracts are common, but fixed-term hiring is subject to stricter justification requirements than in many countries.
Payroll and Social Security
Employers must process payroll monthly, deducting income tax (IRPF) and making contributions to the Spanish social security system (Seguridad Social) for pensions, healthcare, unemployment, and occupational accident coverage. Employer contributions typically range between 29% and 32% of gross salary.
Working Hours and Leave
The standard workweek is 40 hours, with at least one and a half days of rest per week. Employees are entitled to at least 30 calendar days of paid annual leave, plus public holidays which vary by region. Sick leave, maternity and paternity leave, and other family-related leaves are protected by law.
Collective Bargaining Agreements
Convenios Colectivos set minimum pay rates, working hours, and additional benefits for specific industries or geographic areas. These agreements are legally binding and often provide benefits beyond statutory minimums.
Immigration and Work Permits
EU/EEA and Swiss citizens can work freely in Spain. Non-EU nationals require a work permit and residence authorization. Common pathways include:
- Highly Qualified Professional visa: For skilled roles in sectors like technology, finance, and engineering.
- Intra-company Transfer visa: For relocating staff from an overseas branch.
- General Work visa: For roles that meet local labor market requirements.
Employer of Record Spain services from INS Global include full immigration support, managing the application process, renewals, and compliance with Spain’s foreign worker regulations.
Business Culture and Hiring Practices
Spanish workplace culture emphasizes relationship-building, trust, and clear communication. Personal connections often play a role in business negotiations, and respect for hierarchy is common in many organizations.
Recruitment processes may involve multiple interview stages, aptitude tests, and reference checks. Salary packages often include benefits such as meal vouchers, transportation subsidies, and private healthcare.
Many businesses offer 14 salary payments per year, 12 monthly salaries plus two extra payments in summer and December, as required in many sectors.
With an Employer of Record in Spain support, your hiring process can be adapted to meet local cultural expectations while remaining compliant with all legal obligations.
Compliance Challenges for Foreign Employers
Foreign companies often encounter obstacles such as:
- Misapplying or overlooking relevant Convenio Colectivo agreements.
- Miscalculating social security contributions.
- Failing to comply with probation period or termination notice rules.
- Not providing required statutory benefits.
- Underestimating the complexity of regional labor law variations.
INS Global’s Employer of Record in Spain solutions address these risks by combining local legal expertise with centralized HR management.
Why Choose INS Global for Employer of Record in Spain
INS Global provides more than just payroll administration, we offer complete compliance and HR management for your Spanish hires.
With Employer of Record Spain services from INS Global, you gain:
- Full Compliance from Day One: Contracts, payroll, benefits, and taxes aligned with Spanish labor laws and applicable Convenios Colectivos.
- Fast Market Entry: Hire and onboard employees in weeks, not months.
- Immigration and Expat Support: Guidance and processing for work permits and visas.
- Local Expertise: Advisors with deep understanding of Spanish labor law and business culture.
- Secure HR Technology: ISO 27001-certified systems for payroll, contracts, and document storage.
- Scalability: Hire one employee or build a full team without forming a local entity.
- Proactive Compliance Monitoring: Automatic updates for legislative changes and industry regulations.
Since 2006, we’ve helped more than 3,200 companies expand into over 160 countries, maintaining 99% payroll accuracy and 97% customer satisfaction.
Expanding into Spain with Confidence
Spain offers access to a skilled workforce, a diverse economy, and a strategic location bridging multiple markets. But success here depends on navigating its complex labor laws, social security system, and regional regulations.
By choosing INS Global as your Employer of Record Spain partner, you can hire quickly, operate compliantly, and focus on growth, knowing that every legal and HR detail is handled.
Our team provides the infrastructure, expertise, and support you need to thrive in one of Europe’s most competitive and rewarding markets. Employer of Record Spain services from INS Global are your direct route to compliant, efficient hiring and long-term success.