--- title: "Spain" id: "15310" type: "employer-of-record" slug: "spain" published_at: "2025-08-12T14:01:57+00:00" modified_at: "2026-09-23T15:43:00+00:00" url: "https://topsourceworldwide.com/employer-of-record/spain/" markdown_url: "https://topsourceworldwide.com/employer-of-record/spain.md" taxonomy_continent: - "Europe" --- # Employer of Record in Spain We help you remain competitive for top talent and grow your global team quickly – no entity required. [Get Started](https://topsourceworldwide.com/contact-us/) ## Why hire in Spain through an EOR Incorporating an SL in Spain is the easy part. The weight is in what follows: Social Security registrations, convenio classification, 14-payment payroll, time-recording obligations and a dismissal system with fixed price tags. Through an EOR, all of it is already running. ### No entity required Employ staff in Spain, one of 164 countries we cover, without registering and maintaining a local subsidiary. ### Payroll built for Spain Fourteen payments, capped contribution bases, MEI increases and the registro horario calculated and remitted to the TGSS on schedule, every month. ### Visa sponsorship For non-EU hires, we run the Highly Qualified Professional authorisation as the sponsoring employer, and assess Beckham-regime eligibility at offer stage. ### Exits costed in advance Spanish severance follows statutory formulas we tell you exactly what any termination would cost before you make decisions, not after. ### Working in days, not months We register the employment with the TGSS before day one your hire can be compliantly working in Spain in days, while an entity setup would still be weeks from its first payslip. ## Hire in Spain without setting up an entity Spain rewards employers who arrive prepared and punishes the ones who don’t. Salaries are customarily paid in fourteen instalments, not twelve. Employer social security runs to roughly 30% of salary up to a monthly ceiling, with new charges layering on almost every year. Dismissal is neither quick nor cheap — severance is a statutory formula, not a negotiation — and nearly every role sits under a sector collective agreement (convenio colectivo) that quietly overrides whatever your offer letter says about hours, pay floors or bonuses. An Employer of Record clears all of it from your path: TopSource employs your Spanish hires through our established local structure, with compliant contracts, payroll built for the pagas extras, and full visibility of costs before you commit. [Talk to our Spain team](https://topsourceworldwide.com/contact-us/) ## Calculate Your Employee Costs in Spain Enter a gross salary to see the full monthly cost of a hire in Spain employer social security on the capped base, the 14-payment structure, and your total spend per employee. ##### Employment Cost Calculator *Indicative figures only and not definitive legal advice. Local regulations change frequently. [Consult an expert](/contact-us/) ##### Spain Annually Monthly | | British Pound | Spain | | --- | --- | --- | | Base Salary (per month) | | | | Employer Contributions | | | | Total Cost (Annual) | | | | Total Cost (Monthly) | | | Employer of Record services in [Learn more](#) Payroll Outsourcing in [Learn more](#) ## How EOR in Spain works: the process through TopSource Step 1 ### Confirm the role and structure We agree the position, salary and benefits with you, identify the applicable convenio colectivo, and confirm whether the hire is an EU national or needs work authorisation. Step 2 ### Issue a compliant contract Your new hire receives an indefinite employment contract under the Workers’ Statute and the correct collective agreement, with probation, hours and the 14-payment salary structure clearly set out. Step 3 ### Sponsor the visa, if needed For non-EU hires we run the work authorisation — typically the Highly Qualified Professional route — as the sponsoring employer, and advise on Beckham-regime eligibility before the start date is fixed. Step 4 ### Register and run payroll We register the employment with Social Security (TGSS) before day one, then calculate salary, contributions, IRPF withholding and the extra pagas each cycle — remitted on schedule, with time records maintained. Step 5 ### Support the relationship day to day Your account manager and the employee both have a direct line to us for contract questions, leave, benefits and, when needed, a termination costed precisely before you decide. ## Know your Spain hiring costs before you commit Tell us the role and salary — we’ll send back the full employment cost, severance exposure included, within one business day. [Talk to an Expert](https://topsourceworldwide.com/contact-us/) ## Employer Costs in Spain at a Glance €5,101.20 Monthly social security contribution ceiling ≈30.5% Employer social security on top of gross salary 14 Salary payments in a standard Spanish year ## Employer Costs in Spain Explained Spanish employees are typically paid in 14 instalments twelve monthly salaries plus two extra payments in July and December. Employers contribute roughly 30% of salary to social security on a base capped at €5,101.20 per month in 2026, while employees contribute around 6.5%. Statutory vacation is 30 calendar days, and dismissal costs follow fixed formulas of 20 or 33 days’ salary per year of service. Here’s the breakdown by employee type. #### Standard indefinite-contract employees On top of gross salary, employers pay social security of roughly 30.5%: 23.6% for common contingencies, 5.5% unemployment (indefinite contracts), 0.2% to the wage guarantee fund (FOGASA), 0.6% professional training and a 0.75% pension-sustainability charge (MEI, rising yearly to 2050) — plus a work-accident premium that varies by activity (around 1.5% for office roles). Contributions are calculated on a base capped at €5,101.20 per month in 2026 #### Employees paid above the contribution ceiling Earnings above the €5,101.20 monthly base historically escaped contributions entirely. Since 2025 a solidarity contribution applies to the excess, charged in progressive tiers and rising each year — modest today, but it means high salaries are no longer contribution-free and long-term cost models should assume the wedge keeps widening. #### Foreign hires (visas and the Beckham regime) EU and EEA nationals work in Spain freely. Non-EU hires need a residence and work authorization the Highly Qualified Professional permit is the usual route for salaried specialists, with the EOR acting as sponsoring employer. Qualifying new arrivals can elect Spain’s inpatriate tax regime (the ‘Beckham law’), paying a flat 24% IRPF on Spanish employment income up to €600,000 for up to six years often a decisive factor in relocation offers. #### All employees: the 14-payment structure Spanish salaries are customarily quoted annually and paid in 14 instalments: twelve monthly payments plus extra pagas in July and December (many convenios allow pro-rating them across twelve). The extras are part of agreed annual pay, not a bonus but a payroll that isn’t built for them will misquote net salaries and understate summer and Christmas cash-flow. Vacation (30 calendar days) and public holidays (14) are paid as normal salary. ## EOR or entity setup: which one fits your Spain plan? Forming an SL in Spain is not the hard part registration through the CIRCE system can be quick. What follows is the real commitment: Social Security employer registration, a convenio to classify against, 14-payment payroll administration, mandatory time recording, and a dismissal framework where the exit cost of every hire is written into law from day one. An EOR makes sense while you’re testing the market or hiring a first small team; your own entity usually wins once Spanish headcount and permanence justify the overhead. ### Consider an EOR if you’re: 1. Hiring your first one to five people in Spain 2. Sponsoring a non-EU specialist without an established Spanish employer record 3. Still validating the market before committing capital to an entity 4. Working to a hiring deadline measured in weeks, not months [Get a cost comparison](https://topsourceworldwide.com/contact-us/) ## Why TopSource for Employing in Spain TopSource for Employer of Record, global payroll or any other of our services represent a simpler, more reliable and transparent option. We don’t hide fees or sneak price increases. We don’t lock you in for employees you don’t use. But we do give you a dedicated point of contact, available on the phone so you get answers fast including on the questions Spain raises constantly, from convenio classification to what an exit will actually cost. We blend HR advisory with in-market expertise, and we stay flexible around the needs of your business. [EOR Services](https://topsourceworldwide.com/employer-of-record/) [Spain Payroll](https://topsourceworldwide.com/global-payroll/spain/) > “Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.” Director of Research Operations, > “Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.” Chief Human Resources Officer, > “TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.” Senior Manager, Human Resources , ## More than an Employer of Record. Employer of Record services are only one way that we help you accelerate your global growth goals. From talent advisory to entity management, we give you the tools you need to research, enter and expand into your key markets. ##### Market Selection Advisory Compare available talent, compensation, additional costs and regulations across different countries [Read more](https://topsourceworldwide.com/hr-advisory/market-selection-advisory/) ##### Salary Benchmarking Identify and prioritize markets for growth based on talent, cost & regulations [Read more](https://topsourceworldwide.com/hr-advisory/salary-benchmarking/) ##### Global Skills Analysis Map skill availability by region to align talent strategies with business goals.. [Read more](https://topsourceworldwide.com/hr-advisory/global-skills-analysis/) ##### Talent Acquisition Find, hire & onboard the highly skilled team members you need in each locality. [Read more](https://topsourceworldwide.com/talent-acquisition/) ##### Talent Strategy Optimization Optimize your talent strategy to enable your organization to achieve it’s global ambitions. [Read more](https://topsourceworldwide.com/hr-advisory/talent-strategy-optimization/) ##### Global Benefits Review Benchmark your global benefits to boost employee retention. [Read more](https://topsourceworldwide.com/hr-advisory/global-benefits-review/) ## Frequently asked questions ### Do you handle Spain-specific tax and statutory compliance? Yes. We manage Social Security (Seguridad Social) contributions, which run at roughly 30% of gross salary for the employer, along with IRPF income tax withholding. Many Spanish employment contracts also include 14 payments a year rather than 12, with two extra payments (pagas extraordinarias) in summer and at Christmas, either paid separately or prorated monthly, and we apply the correct sector-level convenio colectivo (collective bargaining agreement), which often sets minimum pay and conditions. ### What employee benefits are most competitive to offer in Spain? Private health insurance is the most commonly cited differentiator in Spain, since it substantially shortens specialist wait times compared with the public system, alongside meal vouchers (often via a ‘tarjeta restaurante’), and life or accident insurance. The applicable convenio colectivo may also mandate specific benefits, so checking the sector agreement is a necessary step before finalizing an offer. ### What is the notice period and termination process in Spain? Notice periods vary by contract type and the applicable convenio colectivo, but 15 days is common for objective dismissals. Unfair dismissal severance is calculated at roughly 33 days’ salary per year of service, capped at 24 months’ pay, while fair objective dismissal is compensated at around 20 days per year, capped at 12 months. Spain’s dismissal rules are detailed enough that getting the classification of the dismissal right at the outset materially affects cost and risk. ### How quickly can you onboard an employee in Spain through an EOR? An EOR can typically onboard within one to two weeks for Social Security registration and contract issuance, compared with the several weeks to a couple of months needed to incorporate a Spanish entity (such as an SL) and register with the tax authority and Social Security as an employer. For a first Spanish hire, this is usually the more efficient route. ### Why use an EOR instead of setting up an entity in Spain? Spain’s employment framework combines high social contribution costs with sector-specific collective bargaining agreements and a detailed dismissal cost structure, all of which require local expertise to get right. An EOR takes on that compliance burden and liability, letting you hire in Spain quickly without incorporation costs or an in-country payroll and legal function. [Couldn’t find what you were looking for?](/contact-us/) ## Hire Anywhere with Our EOR Services We help you legally employ and pay talent across 164 countries—so you can scale faster. 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Dollar](https://topsourceworldwide.com/employer-of-record/saint-vincent-the-grenadines/) [Saipan Capital: Capitol Hill Currency: US Dollar](https://topsourceworldwide.com/employer-of-record/saipan/) [San Marino Capital: City of San Marino Currency: Euro](https://topsourceworldwide.com/employer-of-record/san-marino/) [Saudi Arabia Capital: Riyadh Currency: Riyal](https://topsourceworldwide.com/employer-of-record/saudi-arabia/) [Senegal Capital: Dakar Currency: West African CFA Franc](https://topsourceworldwide.com/employer-of-record/senegal/) [Serbia Capital: Belgrade Currency: Serbian Dinar](https://topsourceworldwide.com/employer-of-record/serbia/) [Seychelles Capital: Victoria Currency: Seychellois Rupee](https://topsourceworldwide.com/employer-of-record/seychelles/) [Slovakia Capital: Bratislava Currency: Euro](https://topsourceworldwide.com/employer-of-record/slovakia/) [Slovenia Capital: Ljubljana Currency: Euro](https://topsourceworldwide.com/employer-of-record/slovenia/) [Solomon Island Capital: Honiara Currency: Solomon Islands Dollar](https://topsourceworldwide.com/employer-of-record/solomon-island/) [South Korea Capital: Seoul Currency: Won](https://topsourceworldwide.com/employer-of-record/south-korea/) [South Sudan Capital: Juba Currency: South Sudanese Pound](https://topsourceworldwide.com/employer-of-record/south-sudan/) [Sri Lanka Capital: Colombo Currency: Rupee](https://topsourceworldwide.com/employer-of-record/sri-lanka/) [St-Maarten Capital: Philipsburg Currency: Caribbean Guilder](https://topsourceworldwide.com/employer-of-record/st-maarten/) [Sudan Capital: Khartoum Currency: Sudanese Pound](https://topsourceworldwide.com/employer-of-record/sudan/) [Suriname Capital: Paramaribo Currency: Surinamese Dollar](https://topsourceworldwide.com/employer-of-record/suriname/) [Sweden Capital: Stockholm Currency: Swedish Krona](https://topsourceworldwide.com/employer-of-record/sweden/) [Taiwan Capital: Taipei Currency: Dollar](https://topsourceworldwide.com/employer-of-record/taiwan/) [Thailand Capital: Bangkok Currency: Thai Baht](https://topsourceworldwide.com/employer-of-record/thailand/) [Trinidad & Tobago Capital: Port of Spain Currency: Trinidad and Tobago Dollar](https://topsourceworldwide.com/employer-of-record/trinidad-tobago/) [Tunisia Capital: Tunis Currency: Tunisian Dinar](https://topsourceworldwide.com/employer-of-record/tunisia/) [Uganda Capital: Kampala Currency: Ugandan Shilling](https://topsourceworldwide.com/employer-of-record/uganda/) [United Kingdom Capital: London Currency: Pound Sterling](https://topsourceworldwide.com/employer-of-record/united-kingdom/) [US Virgin Island Capital: Charlotte Amalie Currency: United States Dollar](https://topsourceworldwide.com/employer-of-record/us-virgin-island/) [Venezuela Capital: Caracas Currency: Venezuelan Bolívar](https://topsourceworldwide.com/employer-of-record/venezuela/) [Zambia Capital: Lusaka Currency: Zambian Kwacha](https://topsourceworldwide.com/employer-of-record/zambia/) [Zimbabwe Capital: Harare Currency: Zimbabwe Gold (ZiG)](https://topsourceworldwide.com/employer-of-record/zimbabwe/) Load more