Hiring Employees in Barcelona – Legal Guide for Foreign Businesses

🇪🇸 Can Foreign Businesses Hire Employees in Barcelona?

Yes — foreign-owned companies can legally hire employees in Barcelona, whether operating as an SL, branch, or autonomous freelancer. However, Spanish labor law is strict and highly regulated, so you must comply with:

✅ Written contracts
✅ Social security registration
✅ Monthly payroll obligations
✅ Paid leave, termination, and collective agreements

📌 Mistakes can lead to inspections, fines, or disputes.


📝 Contracts You Can Use to Hire Staff

Spain requires written contracts, registered with SEPE (Servicio Público de Empleo Estatal).

Contract Type Use Case
Indefinido (permanent) Default contract — full employee protections
Temporal (temporary) Fixed duration or project-based
Parcial (part-time) Reduced hours; must define schedule
Contrato de prácticas Paid internship; requires university link

💡 Most foreign employers use indefinido or temporal contracts with a probation period (2–6 months).


💶 What Are the Costs of Hiring in Barcelona?

In addition to gross salary, employers must pay social security contributions:

Cost Type Rate / Range
Gross salary (example) €2,000/month
Employer contribution ~30% of gross salary (€600/month)
Net salary to employee ~€1,600/month (after tax/SS)

📌 You must withhold IRPF (income tax) from employee salaries and pay both sides of social security monthly via Modelo 111 and 190.


📋 Employer Obligations in Barcelona

  1. Register as an employer with TGSS (Tesorería General de la Seguridad Social)

  2. Enroll employees in social security before they start

  3. Sign a written employment contract

  4. Submit contract to SEPE

  5. Provide monthly payslips (nóminas)

  6. Pay taxes and contributions (Modelo 111 quarterly, Modelo 190 yearly)

💡 We manage the entire setup and monthly compliance for you.


⏱️ Working Hours, Holidays, and Benefits

Benefit Standard in Spain
Weekly hours Max 40 hours/week
Paid vacation 30 calendar days/year
Public holidays (Barcelona) 14/year (includes Catalan days)
Sick leave Paid from day 4 (via doctor’s note)
Maternity / paternity leave 16 weeks (fully paid)

⚖️ Barcelona businesses must also follow local convenios colectivos (sectoral labor agreements) — we help identify which one applies.


🔄 Terminating an Employee

You must follow strict rules for dismissal:

  • Give notice (15+ days typically)

  • Provide written termination letter

  • Pay severance if not disciplinary (20–33 days per year worked)

  • File appropriate declarations

📌 Unfair dismissal claims are common — always seek legal advice before firing staff.


👨‍💼 Can You Hire Contractors or Freelancers in Barcelona?

Yes, but you must avoid “falsa autónomo” situations (fake freelancers treated like employees). Use contractors only if:

  • They invoice you directly

  • They work for multiple clients

  • You don’t control their schedule or location

We help you structure freelance agreements legally to avoid labor disputes.


🧑‍💼 Our Payroll & Employment Law Services in Barcelona

At Borderless Lawyers, we offer:

✅ Full employee onboarding and payroll setup
✅ Employment contracts adapted to your sector
✅ SEPE and social security registration
✅ Monthly payroll calculations and Modelo 111/190 filing
✅ Advice on local labor laws, severance, and disputes


📞 Hire Your Team in Barcelona — Without Compliance Risks

Hiring in Spain isn’t simple — but with the right legal support, it becomes predictable and secure. We help foreign companies hire, pay, and manage staff in Barcelona legally.

👉 Contact us to get started with compliant employee hiring in Barcelona.

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