🇪🇸 Hiring in
Spain
What every employer needs to know before hiring in Spain — contracts, payroll setup, social security, and HR compliance obligations.
Key Employment Facts — Spain
Minimum Wage
€ 1,184
Annual Leave
22 days
Notice Period (min)
15 days
Probation Period (max)
6 days
Maternity Leave
16 weeks
13th Month Pay
Not required
How to Hire in Spain — Step by Step
Verify your hiring structure
Decide whether to hire via a local legal entity, a Professional Employer Organisation (PEO), or an Employer of Record (EOR). An EOR lets you hire in Spain without setting up a local company.
Issue a compliant employment contract
All employees in Spain must receive a written employment contract. It must cover job title, salary, working hours, notice period, and leave entitlements before or on the first day of employment.
Register for payroll and tax
You must register with the relevant Spain tax authority before making any salary payments. Payroll must be run in local currency and employer contributions must be filed on time.
Enrol in social security
Employers in Spain are required to enrol employees in the national social security scheme from day one. Both employer and employee contributions are mandatory.
Run compliant payroll
Pay must meet the statutory minimum wage, be paid on the agreed frequency, and include all mandatory deductions. Keep payslip records for the legally required retention period.
Understand termination rules
Notice periods, severance, and redundancy rules in Spain are governed by employment law. Always seek local legal advice before terminating an employment contract.
Contractor Classification Rules — Spain
How Spain distinguishes employees from independent contractors, and the risks of misclassification.
Classification Test
Employment presumption — Workers Statute Article 8 + TRADE (economically dependent autonomous worker) regime
Key Classification Factors
- ✓Personal and direct service
- ✓Dependency — work under instructions
- ✓Integration into organisational structure
- ✓Working hours set by the client
- ✓Exclusivity or near-exclusivity
- ✓Fixed remuneration
Misclassification Penalties
Full reclassification as employee with back-payment of Social Security contributions, paid leave, severance, and all employment entitlements. ITSS (Labour and Social Security Inspectorate) fines up to EUR 187,515 for serious violations. Criminal liability for concealed employment.
Off-Payroll / IR35 Equivalent
Spain has no direct IR35 equivalent. The TRADE regime and Riders' Law serve anti-avoidance functions.
Platform Worker Law
EU Platform Work Directive (2024) — Spain implementing. Riders' Law (Ley Rider, 2021) presumed employment for food delivery platform workers — landmark legislation. Glovo reclassified 12,000+ riders as employees.
Safe Harbour Criteria
Autonomo registration with Social Security (RETA), IRPF advance payments, invoicing with IVA, multiple clients (to avoid TRADE status), own tools, freedom to set working hours.
Spain's Riders' Law (2021) was a landmark law presuming employment for all platform delivery workers — one of the first in Europe. It led to Glovo being fined EUR 57.1 million and reclassifying its riders. Spain actively enforces contractor classification. The autonomo (self-employed) regime requires Social Security RETA contributions of approximately EUR 230-500/month (quota system). TRADE status applies if >75% of income comes from a single client, with enhanced protections but still classified as self-employed.
Work Permits — Spain
Main visa and work permit routes for hiring foreign nationals in Spain.
Unidad de Grandes Empresas (UGE) — International Highly Qualified
Processing
14–30 days
Validity
24 months
Cost
Varies
Sponsor Needed
Yes
Fast-track permit for multinationals and highly qualified workers via the Large Business Unit (UGE). No labour market test. Salary threshold EUR 35,000/year. Processing 10-14 days for qualifying employers registered with UGE. Covers executives, researchers, and ICT transfers.
Official source ↗EU Blue Card (Tarjeta Azul UE)
Processing
30–60 days
Validity
48 months
Cost
Varies
Sponsor Needed
Yes
For highly qualified non-EU professionals. Minimum salary EUR 45,360/year (1.5x average Spanish salary) or EUR 34,020 for shortage occupations. University degree or 5 years equivalent required. Employment contract of at least 1 year. Enhanced EU mobility.
Official source ↗Autorizacion de Residencia y Trabajo por Cuenta Ajena
Processing
60–90 days
Validity
12 months
Cost
Varies
Sponsor Needed
Yes
Standard work and residence authorisation for non-EU nationals employed by a Spanish company. Employer applies at the Delegacion o Subdelegacion del Gobierno. Labour market test (situacion nacional de empleo) required — employer must prove no Spanish/EU candidate is available. Annual renewal up to 4 years then long-term residence.
Official source ↗EOR Intelligence
Skip the entity setup — hire via EOR in Spain.
An Employer of Record handles all local compliance on your behalf.
This guide is for informational purposes only and does not constitute legal or HR advice. Employment law in Spain is subject to change. Always consult a qualified local employment lawyer before hiring.
About This Guide
- ✓ Sourced from official government publications
- ✓ Updated monthly — always current rules
- ✓ For guidance only — not legal advice
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