Why Start a Recruitment Business in Spain?
Spain has a dynamic labor market with increasing demand for:
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Specialized talent in IT, health, logistics, and hospitality
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Temporary and seasonal workers
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Executive search and expat recruitment
🌍 Foreign entrepreneurs can open employment agencies, temporary staffing firms, or headhunting companies to serve Spanish or international markets.
🏢 Types of Recruitment Companies
| Type | Description |
|---|---|
| Temporary Work Agencies (ETTs) | Hire employees and assign them to client companies |
| Direct Placement Firms | Match candidates to permanent roles in client companies |
| Executive Search (Headhunting) | Specialized recruitment for high-level roles |
| Sector-Specific Recruiters | Focused on IT, engineering, healthcare, etc. |
✅ All must comply with Spain’s employment and data protection laws.
📋 Legal Requirements to Open a Recruitment Company in Spain
1️⃣ Choose a Company Type
Most foreign founders opt for:
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Sociedad Limitada (SL): Limited liability company, minimum capital €3,000
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Sociedad Anónima (SA): For larger operations
2️⃣ Register Your Company
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Certify company name with the Registro Mercantil Central
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Sign incorporation deed before a notary
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Obtain NIF (Tax ID) and register with Commercial Registry
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Open a corporate bank account
📌 You can register remotely with Power of Attorney.
3️⃣ Apply for Employment Agency License
To operate legally as a recruiter, you must:
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Register with the Public Employment Service (SEPE)
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Submit:
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Company formation documents
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Activity plan
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Proof of financial solvency and insurance
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Signed code of ethics declaration
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Get authorization as:
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Private Employment Agency (Agencia de Colocación), or
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Temporary Employment Agency (ETT)
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⚖️ ETTs must meet additional labor law and contract-specific requirements.
💼 Compliance With Employment Law
Recruitment firms must:
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Comply with Workers’ Statute (Estatuto de los Trabajadores)
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Use legally approved employment contracts
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Respect maximum temporary work durations and labor protections
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Ensure equal treatment, non-discrimination, and salary fairness
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Handle payroll correctly if acting as employer (ETTs)
📌 You’ll also need GDPR-compliant data handling processes for CVs, interviews, and client databases.
💶 Tax & Financial Obligations
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Register for IVA (VAT) and IAE business activity code
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File monthly and quarterly tax returns
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Maintain proper accounting under Spanish Commercial Code
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Pay corporate income tax (IS) at standard 25% rate
👩💼 If you’re hiring staff, you must register with Social Security and manage payroll, benefits, and withholdings.
🌍 Foreign Ownership & Remote Setup
At Borderless Lawyers, we help founders from:
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🇬🇧 UK
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🇺🇸 USA
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🇨🇦 Canada
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🇦🇺 Australia
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🇦🇪 UAE
…to open Spanish recruitment companies without needing to relocate, using a Power of Attorney and fully remote legal setup.
🧑💼 Case Example: Opening an IT Recruitment Firm in Barcelona
Client: A German entrepreneur wanted to recruit remote software developers for German startups.
We:
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Formed an SL company
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Obtained a recruitment license from SEPE
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Registered VAT and handled GDPR compliance
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Created bilingual recruiter-client contracts
✅ Now operating with 15+ placements per month across the EU.
💰 Estimated Startup Costs
| Item | Approx. Cost |
|---|---|
| Legal & Incorporation Fees | €1,500 – €2,500 |
| Share Capital (SL) | €3,000 (can be deferred) |
| Recruitment License Application | €0 – €500 |
| Insurance (civil & labor law) | €300 – €800 annually |
| Monthly Legal & Tax Management | €200 – €400/month |
📈 Advantages of Setting Up in Spain
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Access to EU labor market and candidates
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Favorable rules for remote hiring and freelancers
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Fast registration & licensing (2–6 weeks)
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English-speaking legal support available
🚀 Launch Your Recruitment Company with Borderless Lawyers
From headhunting to mass staffing, Spain is a growing hub for recruiters. Borderless Lawyers provides full legal and licensing assistance to open and operate a recruitment agency in Spain — with minimal risk and maximum clarity.