🇪🇸 Can Foreign Companies Hire Employees in Valencia?
Yes. If you own an SL company or subsidiary in Valencia, you can legally hire local or foreign employees — provided you:
✅ Register as an employer with Spanish authorities
✅ Comply with Spanish labor laws and collective agreements
✅ Process payroll and social security monthly
✅ Withhold and pay income tax (IRPF)
📝 Steps to Hire Employees in Valencia
-
Register your company with Social Security (TGSS) as an employer
-
Register each employee using their Social Security number
-
Draft a valid employment contract in Spanish
-
Sign employee up for SEPE and TGSS
-
Begin monthly payroll processing and reporting
📌 All steps must be done before the employee’s first working day.
📄 Types of Employment Contracts in Valencia
| Contract Type | When to Use |
|---|---|
| Indefinido (Permanent) | Default full-time contract |
| Temporal (Temporary) | Limited projects or defined periods |
| Parcial (Part-Time) | Fewer hours, flexible arrangements |
| Formación/Prácticas | Internship or training contracts |
We draft and file contracts based on Valencian and Spanish labor law, including applicable sector agreements.
💶 Payroll Obligations in Valencia
| Obligation | Details |
|---|---|
| Gross Salary | Must meet national + sector minimums |
| Social Security (TGSS) | ~30% employer cost, ~6% employee withholding |
| IRPF Tax Withholding | Based on employee’s salary and status |
| Payslips (Nómina) | Must be issued monthly |
| Modelo 111 | Quarterly IRPF declaration |
| Modelo 190 | Annual IRPF summary |
💡 Salaries must be paid by bank transfer and comply with formatting/legal structure.
🧑💼 Employer Costs in Valencia (Illustrative)
| Example: €2,000 gross salary | Amount (€) |
|---|---|
| Employee IRPF | – €150 |
| Employee SS contribution | – €130 |
| Net to Employee | ≈ €1,720 |
| Employer SS | + €600 |
| Total Employer Cost | ≈ €2,600/month |
We handle full payroll + Modelo filing for foreign companies in Valencia.
📅 Hiring Timeline
| Task | Duration |
|---|---|
| NIE + Social Security for employee | 1–5 days |
| Employer registration | 1–3 days |
| Contract drafting & signing | 1 day |
| Start of employment | Immediately after filing |
We ensure compliance from day one — no penalties, no backdated fines.
❌ Common Mistakes When Hiring in Valencia
⛔ Hiring without TGSS registration
⛔ Using English-only contracts (not valid)
⛔ Paying salaries in cash
⛔ Forgetting to file Modelo 111
⛔ Ignoring sector-specific agreements (convenios)
🧑💼 Our Valencia Payroll Services
Borderless Lawyers provides:
✅ Employment contract drafting (bilingual available)
✅ Full payroll processing and payslip generation
✅ Social Security and IRPF declarations (Modelo 111, 190)
✅ Labor compliance and HR support
✅ Employer registration and digital certificate setup
📞 Hiring in Valencia? Stay Compliant and Protected
We support foreign-owned companies and startups hiring in Valencia — with legal HR, payroll, and tax services in English and Spanish.
👉 Contact us to set up payroll and hire employees legally in Valencia.