Hiring employees in Spain: a practical guide
Guidance for employers and HR teams
Hiring in Spain starts before the offer letter. Identify the employer, the applicable collective agreement and the real employment cost, then arrange the contract and Social Security registration before the employee starts.
Choose the right employer structure
A Spanish company can employ staff directly. A foreign company may also be able to register as an employer without incorporating a Spanish subsidiary, but employer registration is separate from VAT registration. The activity, authority and location of the employee can create Spanish tax or permanent-establishment obligations.
If you are considering an intermediary or Employer of Record arrangement, review the actual working relationship first. Spanish restrictions on supplying workers mean that the contractual label alone does not make a structure lawful.
Check the agreement before agreeing the salary
The applicable collective bargaining agreement can set salary tables, professional groups, annual working time, supplements, probation and notice requirements. The statutory minimum wage is a floor, not a substitute for the correct agreement.
- Offer an annual gross salary and explain how it is paid. Extra payments and any monthly proration must follow the applicable collective agreement.
- Budget for employer Social Security contributions, contractual benefits and the practical costs of equipment, prevention and administration. Net salary is not the employer’s total cost.
- The general statutory working-time ceiling is 40 effective hours a week averaged over the year. An agreement may set a shorter working year.
- Annual paid holiday is at least 30 calendar days for a full year. Public holidays are separate and depend on the national, regional and local calendar.
A checklist before the first working day
- Confirm identity, Social Security number and the right to work in Spain. A NIE alone does not establish work permission.
- Select the contract based on the real role and need. Indefinite employment is the general rule; a fixed term needs a lawful, documented reason.
- Put the agreed conditions in writing, including any valid probation clause, workplace, hours, pay and the applicable agreement.
- Arrange employer registration where needed and register the employee with Social Security before work begins. Communicate the contract to the employment service within the applicable ten-day period.
- Prepare risk prevention, employee information, privacy arrangements and daily working-time recording. For regular remote work, check whether a written remote-work agreement is required.
Keep payroll and personnel changes coordinated
Each payroll cycle needs accurate information on pay changes, variable remuneration, absences, hours and starters or leavers. Social Security settlements and wage-tax withholding are separate from paying the employee.
Sick leave is managed through the temporary-incapacity system; payment depends on the cause, duration, eligibility and any collective-agreement supplement. Birth and care leave, other paid leave and dismissal each have their own rules. Review them before promising terms or taking action.
Frequently asked questions
Can a foreign company hire without a Spanish subsidiary?
Sometimes, after the appropriate employer and tax registrations. The employee’s duties and the business activity need a separate permanent-establishment and employment-law assessment.
Can we use a probation period automatically?
No. A valid probation period must be agreed in writing and comply with the applicable limits. It cannot simply be assumed because the employee is new.
Plan the next step with our employment team
Tell us about your company, where the team works and the issue you need to resolve. We will review the next steps and confirm the scope of support.
Contact our employment teamRelated guides and services
Official sources
The linked official sources are in Spanish.
General guidance for employment in Spain. Check the applicable collective agreement and the circumstances of the individual case.