Employer of Record in Spain: The Best and the Rest

Overview

Hiring in Spain through an Employer of Record lets your company employ local talent without first incorporating a Spanish company. The provider becomes the employee’s legal employer and handles the employment contract, Seguridad Social registration, payroll and IRPF withholding, while your company directs the work through its agreement with the provider.

In Spain, the legal model deserves as much attention as the price. Spanish law reserves the supply of workers to a client to licensed temporary-work agencies (ETTs), and only for temporary needs, so how a provider structures the employment affects the risk of illegal worker cession. You should also understand the full cost, including 14 salary payments and dismissal costs.

TheEORDirectory’s guide brings together EOR providers serving Spain in alphabetical order. It begins with a selection of prominent providers, also arranged alphabetically, followed by the full directory. Neither list is a ranking: the right choice depends on your hiring plans, budget and support requirements.

How to Compare Spanish EOR Providers

Start with the legal employer. Providers in Spain generally use one of three models:

• Own Spanish SL: the provider’s subsidiary employs the worker and presents the arrangement as a service.
• Licensed ETT: an agency assigns the worker to you as the user company, within agency-law limits.
• Local partner: a third-party Spanish company employs the worker on the provider’s behalf.

Ask for the full name and CIF (tax identification number) of the company that will sign the contract, and check it in the Mercantile Register (BORME). If the provider says it acts as an ETT, ask for its authorisation number and confirm it in the Ministry of Labour’s public ETT register. If a partner is used, establish who handles payroll, employee queries and disputes.

Request an itemised quote for the specific employee, covering the fee, contributions, extra payments, deposits, benefits and any setup or termination charges. Finally, ask who will support the employee locally, in Spanish and English.

How an Employer of Record Works in Spain

The provider signs a contract under the Workers’ Statute, registers the hire with the Seguridad Social, runs payroll and withholds IRPF and employee contributions. Key features include:

• Contracts: since the 2021 labour reform (Royal Decree-law 32/2021), indefinite contracts are the default. Fixed-term contracts are limited to production needs (up to six months, or one year by collective agreement) or replacing an absent worker.
• Tax: IRPF is progressive, with combined state and regional rates from 19% to about 47%. Qualifying inbound workers may opt for the 24% impatriate regime.
• Pay: salary is usually paid in 14 instalments: 12 monthly payments plus two extra payments, which can be prorated if the collective agreement allows.
• Collective agreements: most roles fall under a sectoral or company convenio colectivo setting minimum pay, hours and benefits.
• Leave: at least 30 calendar days of paid holiday plus up to 14 public holidays.
• Probation: up to six months for qualified technicians and two months for other staff for other staff, and one month on fixed-term contracts of up to six months.
• Dismissal: objective dismissal carries 15 days’ notice and severance of 20 days’ salary per year of service (capped at 12 months). Unfair dismissal costs 33 days per year (capped at 24 months).

The bill to cut the week to 37.5 hours was rejected by Congress in September 2025, and no replacement had been passed by October 2026, so the maximum stays at 40 hours.

ETT Rules and Illegal Worker Cession

Under Law 14/1994, only an authorised ETT may hire workers in order to assign them to a user company:

• Temporary needs only: an ETT assignment is allowed only where the user company could itself sign a fixed-term contract, so it does not cover an open-ended role.
• Equal pay: assigned workers must receive at least the pay set by the user company’s collective agreement for the same role.
• Exclusions: no replacing strikers, specified hazardous work or, for 12 months, posts cut through dismissals.

Outside the ETT framework, article 43 of the Workers’ Statute prohibits illegal worker cession. A cession is illegal where the supplier has no real organisation of its own, does not act as employer or simply places staff at the client’s disposal.

The provider and the client are jointly and severally liable for wages and Seguridad Social contributions. The worker may choose to become a permanent employee of either company, and inspectors can impose fines for a very serious infringement. Ask any provider using its own SL how it organises and directs the work,.

Contracts Beyond Employment

Some providers propose contractor models instead of employment:

• Autónomo: the worker registers as self-employed with the tax agency and the RETA scheme of the Seguridad Social, pays contributions based on real net income and invoices your company.
• TRADE: an economically dependent self-employed worker who earns at least 75% of their income from one client. Under the Self-Employed Workers’ Statute, the contract must be written and registered, with 18 working days of rest and compensation for unjustified termination.

Courts look at substance, not labels: work under your direction, within your organisation and for a regular fee is likely employment. This is the falso autónomo risk.

If an inspection reclassifies the contract, the business can owe back contributions with surcharges, plus fines, and the worker can claim employment rights, including severance. Ask any provider proposing this model how it assesses the risk.

What an EOR Costs in Spain

The monthly service fee is only one part of the budget. The total includes gross salary, employer contributions, the EOR fee and any benefits.

For an indefinite contract in 2026, employer contributions to the Seguridad Social total roughly 30.65% of the contribution base plus the workplace accident rate. The rates include 0.75% for the Intergenerational Equity Mechanism (MEI), part of a 0.90% total. The maximum contribution base is EUR 5,101.20 a month, with a solidarity contribution from 1.15% on pay above it. The minimum wage (SMI) is EUR 1,221 a month over 14 payments (EUR 17,094 a year) for 2026.

Published fees vary. Spanish specialist SpainWork lists EUR 195 a month and Tarmack $199, RemotePeople starts from $199 under its EOR Select plan in selected countries, and Deel’s published price is about $599 per employee per month.

For illustration, assume a gross salary of EUR 45,000 a year, employer contributions of about 32.15% including a 1.5% accident rate, and an EOR fee of EUR 500 a month:

This is a budgeting example, not a provider quote. Benefits and severance would increase the total.

The Hiring Process and Work Permits

EU, EEA and Swiss citizens need only an NIE (foreigner identity number) and Seguridad Social number, and can often start within two weeks. Others usually need a permit:

• Highly qualified professional (HQP): a residence authorisation under Law 14/2013, processed by the UGE-CE in about 20 working days, subject to a salary threshold.
• EU Blue Card: for qualified professionals with a contract of at least six months and pay above the threshold.
• Digital nomad visa: created by Law 28/2022 for remote work for employers or clients outside Spain, with income of at least 200% of the SMI (about EUR 2,849 a month in 2026). It does not cover employment by a Spanish EOR.

A new immigration regulation, Royal Decree 1155/2024, took effect on 20 May 2025. It lengthened initial permits and reformed the job-seeking and roots routes. Check that the provider can sponsor the permit each hire needs, and how long it will take.

Questions to Ask Before Signing

• Which Spanish company will employ the worker, and what is its CIF?
• Is it an authorised ETT, your own SL or a local partner, and how do you avoid illegal worker cession?
• Will the employee have an indefinite employment contract rather than an autónomo arrangement?
• Which collective agreement applies, and what minimum salary and benefits does it set?
• What is the complete annual cost, including both extra payments, Seguridad Social, benefits and deposits?
• Can you sponsor the work permit this hire needs, and how long will it take?
• What severance and charges apply on termination or a move to direct employment?

Clear answers make it easier to compare the providers in the directory and choose an arrangement that fits both your immediate hire and your longer-term plans.