1. 🏢 Can Foreign-Owned Companies Hire Staff in Barcelona?
Yes. Any Spanish company (including those owned by foreigners) can legally hire local or international staff in Barcelona.
To do so, you must comply with Spanish labor law, social security, and payroll requirements.
If your company is newly formed, you’ll first need:
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A valid CIF (tax ID)
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A Spanish Social Security employer number
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An inscription into the labor registry
2. 📄 Employment Contract Types in Spain
When hiring employees in Barcelona, you must provide a written contract. Common types include:
| Type | Duration | Notes |
|---|---|---|
| Indefinite (fijo) | Permanent | Most common and stable |
| Temporary (temporal) | Fixed-term | Requires justification (e.g., seasonal or project-based) |
| Part-time (tiempo parcial) | Flexible hours | Pro-rata salary and benefits |
| Internship (becario/prácticas) | Time-limited | For students or recent grads |
All contracts must be in Spanish (plus Catalan optionally), signed by both parties, and registered with SEPE (Spanish employment service).
3. 💶 What Are the Employer’s Legal Obligations?
Once you hire staff, your company must:
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Register the employee with Social Security before their first day
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Issue monthly payslips (nóminas)
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Pay Social Security contributions (around 30% of gross salary)
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Deduct and remit IRPF (income tax) from salaries
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Provide paid vacation (minimum 30 calendar days/year)
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Offer health & safety protections, sick leave, and more
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Respect the applicable collective bargaining agreement (convenio colectivo)
You must also maintain a digital labor folder and comply with Spain’s strict dismissal laws.
4. 🧮 Payroll and Social Security Costs
| Item | Estimated % of Gross Salary |
|---|---|
| Social Security (employer) | ~30% |
| IRPF Withholding | 2%–45% (depends on salary) |
| Work insurance | Required under law |
| Severance (if terminated) | Varies by contract type and duration |
For example, a gross salary of €2,000/month may cost the company over €2,600/month including taxes and contributions.
5. 🌍 Can You Hire Non-Spanish or Remote Workers?
Yes, you can hire:
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EU nationals with no extra permit
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Non-EU nationals with valid residency + work permit
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Remote workers abroad (but this triggers foreign labor law compliance)
For non-resident directors or foreign staff, tax residency and payroll setup must be handled carefully.
6. ⚠️ Common Mistakes When Hiring in Barcelona
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❌ Not registering staff with Social Security
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❌ Using generic or outdated employment contracts
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❌ Underestimating total employment costs
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❌ Ignoring collective agreements or working hours limits
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❌ Failing to provide termination notice or severance
Spain has strict labor protections, and employment lawsuits are common if mistakes are made.
7. 👨⚖️ How Borderless Lawyers Can Help You Hire Legally
We support foreign business owners with:
✔ Drafting and registering employment contracts
✔ Payroll processing and social security setup
✔ Hiring remote or non-EU workers in Spain
✔ Handling work permits and compliance
✔ Resolving labor disputes or terminations legally
Contact us today for compliant and stress-free hiring in Barcelona.