Employer of Record (EOR) in Spain
Easily hire employees in Spain without establishing a local business entity. Native Teams simplifies expanding your workforce internationally by handling local laws, taxes, and payroll management. Focus on growing your business while we ensure compliance.
How does an EOR in Spain work?
An Employer of Record (EOR) in Spain enables businesses to hire employees in Spain without needing to establish a legal entity. With Native Teams, the EOR process involves a partnership where your company retains full control over the work and daily activities of your employees while Native Teams acts as the legal employer.
Native Teams handles all the legal, administrative, and compliance-related responsibilities, such as employment contracts, payroll, tax contributions, social security registration, and statutory benefits. Your company’s primary obligation is to pay a leasing fee covering payroll, taxes, benefits, and administrative costs. This streamlined approach allows you to focus on your business operations while ensuring full compliance with Spain’s employment laws and regulations.
Who can use EOR services in Spain?
An Employer of Record (EOR) is an excellent option for businesses looking to expand their global workforce effortlessly and for solo professionals seeking the advantages of traditional employment.
Features of Native Teams EOR services in Spain
Employment status
Native Teams’ EOR services enable freelancers to formalise their employment status, ensuring compliance regardless of where they live and work. Employers can also hire, onboard, and pay their international team members efficiently and in full compliance with local regulations.
HR administration and documentation
We simplify HR processes by automating administration and providing all essential documentation. With your Native Teams dashboard, you’ll have instant access to all records and information at your fingertips.
Global payroll
Our payroll calculator, available in over 85 countries, allows freelancers and employers to calculate salaries, taxes, benefits, and deductions easily. Employers can efficiently manage payroll for their global workforce from a single, unified platform.
Benefits
Freelancers can enjoy the flexibility of independent work along with statutory benefits such as healthcare, insurance, and pensions. Employers can leverage these benefits to attract and retain top talent, ensuring a motivated and satisfied team.
Dive deeper into Spain’s labour laws and regulations with our hiring guide.
What legal requirements exist for employment in Spain
Employment contracts
Employers must provide a written employment contract outlining the terms and conditions of employment. This includes details about salary, working hours, benefits, and the contract duration.
Social security registration
Employees must be registered with the Spanish Social Security system. Employers are responsible for making monthly contributions to cover benefits such as healthcare, pensions, and unemployment insurance.
Social security contributions
Employers must pay contributions for employees’ social security benefits, including pensions, disability coverage, and health insurance.
Income tax withholding
Employers are required to withhold income tax from employees' salaries and remit it to the Spanish tax authorities. This is calculated based on the employee’s earnings and applicable deductions.
Payroll taxes
Payroll taxes, which include social security contributions and unemployment insurance, must be calculated and paid regularly by employers.
Statutory benefits
Employees are entitled to statutory benefits, such as paid annual leave, sick leave, and maternity/paternity leave. Employers must ensure these benefits are provided according to Spanish labour laws.
Termination procedures
Terminating an employment relationship in Spain requires adherence to specific legal procedures. This includes providing appropriate notice, severance pay (where applicable), and complying with legal regulations governing termination.
It is important to note that legal requirements can vary depending on factors such as the industry, company size, and specific circumstances of the employment arrangement. Consulting with local legal and compliance experts is essential to ensure full comp
Why choose Native Teams as your Spain Employer of Record?
Navigating the complexities of Spanish labour laws can be challenging. Native Teams simplifies the process, ensuring compliance with all legal requirements. From drafting compliant employment contracts to managing payroll taxes, social security contributions, and statutory benefits, we handle the legal and administrative responsibilities for you. With our expertise, you can focus on growing your business while avoiding costly mistakes and ensuring smooth operations.
``What is an Employer of Record?
An Employer of Record (EOR) is a third-party organisation that legally employs workers on behalf of another company. The EOR takes on all administrative and legal responsibilities related to employment, such as payroll processing, tax withholding, compliance with labour laws, and benefits administration. This allows businesses to expand into new markets without establishing a local legal entity.
For individuals such as freelancers or remote workers, an EOR provides formal employment status, helping them access traditional employee benefits like healthcare, pensions, and statutory protections while maintaining their flexible work arrangements.
What are the costs of using an Employer of Record in Spain?
The costs of using an EOR in Spain typically include fees for payroll processing, social security contributions, tax compliance, statutory benefits, and administrative management. Native Teams offers transparent pricing, ensuring you only pay for the services you need to hire and manage your employees compliantly. Business plans for EOR services start at €99 per month per employee, covering all essential aspects of legal employment, including payroll, compliance, and benefits administration.
What is the difference between PEO and EOR?
The key distinction between a Professional Employer Organisation (PEO) and an Employer of Record (EOR) lies in their roles and responsibilities. A Professional Employer Organisation (PEO) provides HR support and co-employment services, where the employer and PEO share responsibilities.
In contrast, an Employer of Record (EOR) becomes the legal employer, taking on full compliance, tax, and payroll responsibilities. While PEOs often require you to establish a legal entity in the country, EORs like Native Teams allow you to hire globally without setting up local entities.
What are the responsibilities of an Employer of Record (EOR) service provider?
An Employer of Record takes on the legal and administrative responsibilities of employing workers in a specific country. These responsibilities include drafting compliant employment contracts, registering employees with the local social security system, and managing payroll, tax withholding, and statutory contributions. Additionally, the EOR ensures employees receive statutory benefits such as paid vacation, sick leave, and healthcare coverage. They also handle termination procedures, ensuring compliance with local laws and minimising risks for your business.
By managing these critical tasks, an EOR like Native Teams allows you to focus on your operations while ensuring a compliant and seamless employment process.
Is using an Employer of Record in Spain legal?
Yes, using an Employer of Record in Spain is completely legal and widely recognised as a legitimate way to hire employees in the country. By partnering with an EOR, businesses ensure compliance with Spanish labour laws, including employment contracts, payroll taxes, and statutory benefits.
The EOR takes on the legal responsibilities of employment, reducing the risk of non-compliance and potential penalties. This arrangement provides an efficient and lawful solution for companies seeking to expand their operations in Spain without establishing a local legal entity.
Why should I use an EOR instead of opening my own company or an office in Spain?
Opening your own company or office in Spain involves a lengthy and complex process, including registering a legal entity, securing office space, opening a local bank account, and adhering to various tax and employment regulations. This can take months and require significant financial and administrative resources. By using an EOR like Native Teams, you can bypass these challenges and start hiring employees in Spain almost immediately. An EOR manages all legal and compliance matters, allowing you to focus on growing your team and business without the burden of setting up and maintaining a local entity.
How many people can I employ in Spain?
With Native Teams, there’s no limit to the number of employees you can hire in Spain. Whether you’re looking to employ a single freelancer or build an entire local team, our scalable EOR services can accommodate your needs. Additionally, our platform allows you to manage employees across multiple countries, ensuring seamless global expansion.