🇪🇸 Why Hiring in Spain Requires Legal Clarity
Spain has strict labor laws that protect employees and impose detailed obligations on employers. Whether you’re starting a business or expanding your team, hiring in Spain involves more than just contracts — it’s a regulated system involving social security, payroll, and employment tax compliance.
✅ Spanish labor law favors long-term stability
✅ Employee protections are strong
✅ Mistakes can trigger inspections or fines
💡 Hiring locally can support residency applications, tax structuring, or payroll optimization — with the right legal setup.
📝 Step-by-Step: Hiring Employees in Spain Legally
1. Register Your Company as an Employer (CCC Number)
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You must register with the Tesorería General de la Seguridad Social (TGSS)
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This grants your business a Código de Cuenta de Cotización (CCC) — the employer contribution code
2. Register the Employee with Social Security
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Before the employee starts, they must be registered under your CCC
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You’ll need their NIE, employment details, and contract info
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Submit via Sistema RED (TGSS online portal)
3. Prepare a Legal Employment Contract
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Contracts must be in writing and follow Spanish labor standards
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Common types include:
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Indefinido (permanent)
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Temporal (fixed-term)
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Internships or apprenticeships
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Must be registered with SEPE (employment office) within 10 days
💡 We draft bilingual, compliant labor contracts for foreign employers.
💰 Employer Costs & Contributions in Spain
| Cost Type | Typical Rate |
|---|---|
| Gross salary | Set by contract |
| Social security (employer) | ~30% of gross salary |
| Social security (employee) | ~6.35% (withheld) |
| IRPF tax withholding | 2%–47% (based on income level) |
Employers must withhold and file IRPF tax and social security monthly, and submit quarterly returns via Modelo 111 & 190.
🗓️ Monthly Payroll & Filing Requirements
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Monthly: Pay salary, withhold IRPF & social security, submit payments
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Quarterly (Modelo 111): Declare withheld income tax
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Annually (Modelo 190): Declare employee tax summary
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INSS / TGSS: Handle social security reporting and payments
💡 Our firm offers full payroll processing and labor compliance services.
⚖️ Labor Law Protections in Spain
Spain has strong worker protections:
✅ Paid holidays (30 calendar days/year)
✅ Sick leave & medical coverage via social security
✅ Parental leave, severance pay, and unfair dismissal laws
✅ Unions and convenios colectivos (sector agreements) may apply
Foreign employers must adapt to Spanish-style employment, which may differ greatly from U.S., UK, or other systems.
❌ What Not to Do
⛔ Hiring freelancers who should be employees (false autónomos)
⛔ Paying employees under the table or with foreign contracts
⛔ Failing to register the contract with SEPE
⛔ Delays in social security payments — leads to automatic fines
🛂 Does Hiring Support Residency?
Yes — business owners who hire Spanish employees may strengthen their case for:
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Entrepreneur visa
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Self-employed visa (autónomo)
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Investor residency (in some cases)
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Digital Nomad Visa (company payroll optional for family)
💡 Our legal team handles immigration + business + HR setup together.
🧑💼 We Can Help You Hire in Spain
At Borderless Lawyers, we provide:
✅ Employer registration & CCC setup
✅ Legal employment contracts (bilingual)
✅ Payroll + IRPF + TGSS reporting
✅ HR compliance for startups, SLs, and remote founders
✅ Labor dispute prevention or termination strategies
✅ Residency application support for business owners
📞 Hire Employees in Spain with Legal Confidence
Whether you’re building a team locally or hiring remotely in Spain, we help you stay compliant, reduce risk, and focus on growing your business.
👉 Contact us to set up your hiring process in Spain – quickly and legally.