HR, PEO & Employer of Record (EOR) Services in Spain

Introduction

Spain offers a strategic gateway to both European and Latin American markets, combining a robust domestic economy with global connectivity. Renowned for its skilled workforce, competitive labor costs, and strong infrastructure in sectors like technology, renewable energy, and logistics, Spain is an attractive hub for expansion.

With supportive government incentives and access to the EU’s single market, businesses entering Spain gain both growth opportunities and international reach.

EOR & PEO Solutions in Spain

If you’re looking to hire employees in Spain without setting up a legal entity, using an Employer of Record (EOR) like Empleyo is the simplest and most compliant path forward. An EOR in Spain acts as the official legal employer on your behalf, managing everything from payroll and HR administration to employment contracts and statutory employee benefits.

This model allows you to expand into Spain quickly, while remaining fully compliant with local labor laws without the complexity or cost of registering a local entity.

What Is an Employer of Record in Spain?

An Employer of Record Spain (also known as an EOR provider) enables businesses to hire and onboard Spain employees without having to incorporate in-country. The EOR manages:

You continue to oversee your team’s day-to-day tasks, while the EOR service handles legal obligations as the official employer on paper.

What’s the Difference Between EOR and PEO?

A Professional Employer Organization (PEO) typically supports businesses that already have a registered entity in Spain, offering co-employment solutions for HR, payroll, and benefits. An EOR, however, is ideal when you don’t have a legal presence in Vietnam but still want to hire full-time staff.

Whether you choose an EOR or PEO depends on your Spain hiring strategy, budget, and long-term plans for the market.

Benefits of Using an EOR Service in Spain

By using an EOR solution, companies can confidently build their team in Spain, access top talent in Spain, and stay focused on business growth without getting tangled in bureaucracy.

Hiring in Spain

Spain is a thriving market with a growing pool of skilled professionals, making it an ideal destination for businesses looking to expand globally. But to hire in Spain successfully, it’s important to understand your options especially when you don’t have a legal entity in Spain.

That’s where using an Employer of Record in Spain makes all the difference.

Your Hiring Options in Spain

Businesses have two main paths to hire employees in Spain:

The second option is faster, lower-risk, and ideal for companies that want to test the Spanish market, launch quickly, or hire remote employees without permanent infrastructure.

Why Use an EOR to Hire in Spain?

This approach is especially useful for startups, global teams, and growing businesses that need to hire quickly and remain fully compliant.

Employment in Spain

Understanding how employment in Spain works is key to managing your team successfully and staying compliant. Whether you’re hiring directly or using an Employer of Record (EOR), companies must follow Spanish labor laws closely especially when it comes to employment contracts, payroll, and employee benefits.

That’s why many growing businesses choose to use an EOR in Spain to handle these responsibilities with confidence.

Employment Contracts in Spain

All employees in Spain must be hired under a written employment contract, clearly outlining the job role, salary, benefits, working hours, and duration of employment. Contracts must comply with the Labor Code of Spain, and are usually signed before or on the first day of work.

By working with a Spain employer of record, you can ensure that all employment contracts in Spain are properly structured, compliant, and aligned with local requirements without having to hire a full in-house HR team.

Payroll & Employer Contributions

Payroll in Spain involves more than just paying a monthly salary. Employers are required to withhold income tax and make contributions to:

These deductions and employer contributions are calculated based on the employee’s gross monthly salary, and must be submitted on time to remain compliant. An EOR in Spain handles this for you, managing all payroll, tax filings, and reporting on your behalf.

Employee Benefits and Leave

Spanish labor law mandates several employee benefits, including:

Using an employer of record service ensures your team in Spain receives all required benefits and that your business remains fully compliant with Spanish employment law.

Termination & Notice Periods

Ending an employment contract in Spain requires strict adherence to labor laws, where notice periods and termination conditions depend on contract type, tenure, and reason for dismissal. Employers must generally provide at least 15 days’ notice for ordinary terminations, with longer obligations in cases of collective or unfair dismissal.

By partnering with an Employer of Record (EOR), businesses ensure that all documentation, severance calculations, and compliance steps are handled correctly mitigating legal risk while respecting employee rights.

Visas & Permits in Spain

If you’re planning to hire employees in Spain or bring in foreign talent, understanding Spain’s visa and permit requirements is critical. Navigating these processes can be complex, but working with a trusted Employer of Record (EOR) in Spain makes it much easier.

An experienced EOR provider will ensure all permits are handled legally, so you can focus on building your team in Spain with confidence.

Work Permits for Foreign Employees in Spain

Foreign nationals who plan to work in Spain must secure the appropriate work and residence permits, with requirements depending on nationality and role. While EU/EEA and Swiss citizens benefit from free movement and can work without additional permits, non-EU employees must obtain both a work authorization and a residence visa.

An Employer of Record (EOR) streamlines this process by managing applications, ensuring compliance with Spanish immigration rules, and enabling businesses to onboard global talent quickly and legally.

Types of Visas for Foreign Talent

There are several types of visas used to work or do business in Spain, including:

Each visa type has specific use cases, duration limits, and documentation requirements. If you’re looking to hire in Spain or send international staff temporarily, an EOR Spain solution helps you identify the right visa and manage the application process end-to-end.

Business Permits for Foreign Companies

To operate directly in Spain, foreign companies typically need to register a legal entity in Spain and apply for a business license. This can be a time-consuming process that includes office registration, investment approvals, and compliance with Spanish labor laws.

Alternatively, you can use an EOR in Spain to bypass the need for a local entity. The Spain employer of record is already registered and authorized to employ staff and manage payroll, contracts, and local compliance making it easier and faster to hire employees in Spain.

Why Visas & Permits Matter for Global Hiring

If you’re hiring foreign employees in Spain, or placing international staff in-country, it’s essential to stay compliant with immigration laws. The right employer of record service helps you:

Common Questions on EOR in Spain

What types of employment contracts can an EOR issue in Spain?

EORs can issue permanent, temporary, and fixed-term contracts in full compliance with Spanish labor law. They ensure contracts reflect mandatory clauses, collective bargaining agreements, and role-specific requirements.

How long does it take to onboard a new hire through an Employer of Record in Spain?

Onboarding a new hire through an Employer of Record (EOR) in Spain is generally a fast and streamlined process. For local Spanish employees, setup can often be completed within 1–2 weeks, depending on how quickly required documents (e.g., tax ID, social security number, signed contract) are provided. For foreign employees, the timeline is longer since work and residence permits are required—this process can take 1–3 months or more, depending on the type of visa and the applicant’s country of origin. An EOR ensures all employment contracts, payroll setup, and compliance checks are handled efficiently to minimize delays.

Is remote or hybrid work possible when hiring through an EOR in Spain?

Absolutely. An EOR can structure employment contracts to support remote or hybrid arrangements while ensuring compliance with Spanish labor laws, tax obligations, and health and safety requirements.

What happens if an employee needs to be terminated in Spain?

An EOR manages the termination process according to Spanish labor law, which includes statutory notice periods, severance obligations, and protections against unfair dismissal. This safeguards businesses against costly disputes or penalties.

How does an EOR ensure compliance with Spanish labor regulations?

An EOR continuously monitors changes in Spain’s employment, tax, and social security laws. By applying best practices and aligning with collective agreements, they ensure businesses remain compliant without needing an in-country legal entity.