Employer of Record (EOR) in Spain
Employer of Record (EOR) in Spain helps businesses hire from Spain’s 23 million-strong workforce without establishing a local legal entity. Spain offers skilled professionals across technology, tourism, finance, engineering, and manufacturing. Its strategic location in Europe, combined with access to the EU market, makes it attractive for foreign businesses. However, Spain’s labor laws are highly regulated, with strict rules on contracts, working hours, and social security. Taxation and employee rights vary based on agreements and collective bargaining. EOR services simplify compliance, manage payroll, and provide quick market entry, enabling companies to focus on growth while hiring talent in Spain.
About Spain
Spain, located in Southern Europe, has a population of approximately 48 million people. It is the fourth-largest economy in the European Union and one of the most visited countries in the world.
Spain’s economy is diverse, with strong industries in tourism, automotive, agriculture, renewable energy, and information technology. Major business hubs include Madrid, Barcelona, Valencia, and Seville, offering international connectivity and skilled professionals.
The country is also known for its cultural richness, Mediterranean lifestyle, and robust infrastructure. Its workforce is highly educated, with many professionals fluent in multiple languages, including Spanish and English. As part of the EU, Spain provides companies access to the single market, making it an attractive location for expansion in Europe.
Employment Terms and Regulations
Types of Contracts:
Permanent, temporary, part-time, and training contracts.
Job Titles:
Common roles include software engineers, accountants, IT specialists, hospitality managers, and project coordinators.
Working Hours:
Standard is 40 hours per week, typically 9 AM–6 PM with a break. Overtime is regulated.
Minimum Wage:
€1,134 per month (14 payments annually, approx. €15,900/year, 2025).
Probation Period:
Usually 2–6 months, depending on contract and role.
Taxation and Contributions
Income Tax:
Progressive rates from 19% to 47%.
Employer Contributions:
~29.9% of gross salary for social security, including pensions, unemployment, training, and occupational risk coverage.
Types of Leave
Annual Leave:
22 working days minimum per year.
Public Holidays:
12–14 days depending on region.
Sick Leave:
Paid through social security; employers pay part of salary in the initial days.
Parental Leave:
6 weeks paid for both mothers and fathers (can be extended in some cases).
Employee Benefits
- Social security coverage (healthcare, unemployment, pensions).
- Paid annual leave and public holidays.
- Allowances for transport, meals, and childcare (in some contracts).
- Collective bargaining agreements often provide additional benefits.
Termination Process
Termination requires justified cause and adherence to Spanish labor law. Notice periods are typically 15 days. Wrongful dismissal requires severance pay, which can be 20–33 days of salary per year worked, depending on contract type.
Employer Taxes
Employer social security contributions are around 29.9% of gross salary, among the highest in Europe. This covers pensions, healthcare, unemployment, and training programs.
EMPLOYER TAXES
29.9% (Estimated)
FAQ's
How STM Manages Employment in India
Establishing an entity in every hiring location can be cost-prohibitive. STM simplifies the process by employing and paying your Indian talent on your behalf. We handle the intricate HR procedures and employment contracts in compliance with local laws. You can conveniently approve invoices through our platform. By partnering with an Employer of Record (EOR), you can efficiently and compliantly hire top talent globally.
Payment Processes for Indian Employees
We streamline payroll management for your Indian workforce. Employee hours, leaves, holidays, bonuses, and commissions are meticulously calculated. STM invoices you around the 15th of each month in your preferred currency, including US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD). This ensures your Indian employees receive their salaries promptly in Indian Rupees (INR). Simplify further by consolidating your global team’s salaries into a single payment.
Full-time Employees vs. Global Contractors
Contractors engage with multiple companies and are self-employed, while full-time employees focus solely on their employer and receive additional benefits like health insurance, equity, and time off. While hiring international contractors can be cost-effective, it comes with misclassification risks. Partnering with an EOR for contractor onboarding and payments ensures compliant and timely compensation.
Reliable Employee Support
Our platform offers accessible support for employees and employers with inquiries about benefits, visas, and global employment in India. Utilize the chat function to connect with our expert team. Additionally, every STM client is assigned a dedicated account manager, serving as the primary contact for global HR assistance.
