If you’re expanding into Spain or starting a business locally, hiring employees in Spain comes with specific legal requirements. Spanish labor law is protective of employees and highly regulated, so non-compliance can result in costly penalties.
This guide walks you through the key legal steps, documentation, and employer obligations when hiring staff in Spain.
📋 1. Legal Structure to Hire
Before hiring employees, you must operate under a recognized legal structure in Spain:
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Spanish company (S.L. or S.A.)
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Foreign company with a branch or permanent establishment
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Freelancer (autónomo) – Can only hire a limited number of employees
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Non-resident entity via employer of record (EOR)
💡 Need help setting up a legal entity? We can assist with company formation or finding a compliant EOR solution.
🏦 2. Register as an Employer
You must register with the following public bodies before hiring:
| Authority | Purpose |
|---|---|
| Social Security (Seguridad Social) | Obtain employer contribution number (Código de Cuenta de Cotización – CCC) |
| Tax Agency (AEAT) | For income tax (IRPF) withholding and payroll compliance |
| SEPE (Public Employment Service) | Optional but useful for labor notifications and grants |
📑 3. Draft a Compliant Employment Contract
Spanish law requires written employment contracts for:
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Temporary work
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Part-time work
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Remote work
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Any contract longer than 4 weeks
Standard elements include:
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Job title and duties
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Salary and benefits
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Working hours
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Termination clauses
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Trial period (typically 2–6 months)
📌 Use official templates or have your lawyer draft bilingual contracts.
💰 4. Minimum Wage & Salary Obligations
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Spanish Minimum Wage (SMI): Reviewed annually by the government
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Salary must be paid monthly and include 2 extra payments (June and December), unless prorated
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Industry-wide collective bargaining agreements may set higher wages or benefits
⏰ 5. Working Hours & Leave
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Standard full-time workweek: 40 hours
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Mandatory rest: 12 hours between shifts, 1.5 days/week off
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Paid annual leave: 30 calendar days
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Public holidays vary by region (national + regional + local)
🧾 6. Onboarding & Social Security Registration
Each employee must be:
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Registered with Social Security (via Form TA.2/S)
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Assigned a Social Security number if they don’t have one
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Reported to authorities before the start date
💡 Spanish authorities can audit this—failure to register employees on time can result in fines.
📂 7. Employee Rights & Obligations
New hires are entitled to:
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Health and safety protections
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Payslips and employment records
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Anti-discrimination and equal treatment
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Right to union representation
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Protection from unfair dismissal
📌 Probationary periods, non-competes, and working conditions must follow Spanish labor laws or collective agreements.
🧮 8. Payroll & Tax Withholding
Employers are responsible for:
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Withholding IRPF income tax
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Paying Social Security contributions (approx. 30% employer + 6.35% employee)
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Issuing monthly payslips (nóminas)
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Filing declarations to AEAT and Seguridad Social
We recommend outsourcing payroll to a local accountant or gestoría.
🌍 9. Hiring Foreign Employees in Spain
You must verify that the employee:
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Has a valid residency and work permit (non-EU nationals)
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Is registered in Spain with a NIE (Número de Identidad de Extranjero)
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Has social security affiliation
For EU citizens, only social security registration is required.
🛡️ 10. Employment Insurance & Risk Prevention
Employers must:
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Insure employees for occupational accidents
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Appoint or contract a health and safety advisor
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Provide training and perform risk assessments
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Maintain a workplace accident log
This is enforced by the Labor Inspectorate (Inspección de Trabajo).
👨⚖️ Borderless Lawyers: Your Partner for Hiring in Spain
We guide international companies through:
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Employer setup and registrations
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Compliant employment contracts
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Hiring foreign workers
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Payroll and labor compliance
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Ongoing HR legal support