Employer of record in Spain: the real cost in 2026

EOR, own company or contractor?

There are four ways to work with someone in Spain. Each one fits a different case.

Employer of record

The EOR employs the person for you and runs the payroll. You need no Spanish company. But Spanish law limits this model (see the next section).Workers' Statute (Estatuto de los Trabajadores)Checked 2 Oct 2026

Your own company as the employer

A foreign company can register with the Seguridad Social as an employer, with no Spanish company. It needs a representative with an address in Spain and a Spanish tax number (NIF). It must also withhold income tax from the salary.Ministry of Labour, a company abroad with a worker in Spain, Real Decreto 1415/2004, contribution collection, article 16 (BOE), Personal Income Tax Act (LIRPF), articles 93 and 99 (BOE)Checked 2 Oct 2026

A Spanish company (SL)

A sociedad limitada needs a capital of at least €1. Until the capital and the reserves reach €3,000, at least 20% of the profit goes to a legal reserve. A public deed sets up the company, and it registers in the Registro Mercantil. Each partner needs a Spanish tax number (NIF).Companies Act (LSC), articles 4, 20 and 33 (BOE), Agencia Tributaria, the tax number (NIF) of a personChecked 2 Oct 2026

Contractor (autónomo)

The law presumes an employment contract when a person works for pay within the organisation and under the direction of another. A self-employed person who earns at least 75% of the income from one client is economically dependent (TRADE), with extra rights.Workers' Statute (Estatuto de los Trabajadores), Self-Employed Workers' Statute (LETA), article 11 (BOE)Checked 2 Oct 2026

The supply of workers: article 43 and the ETT rules

An EOR is the legal employer, but the person works under your direction. In Spain, a strict rule applies to this.

Article 43

The Workers' Statute says that a company may hire workers to place them temporarily with another company only through an authorised temporary work agency (empresa de trabajo temporal, ETT).Workers' Statute (Estatuto de los Trabajadores)Checked 2 Oct 2026

Illegal cession

The cession is illegal when the contract only makes workers available to the client. It is also illegal when the supplier has no real business and organisation of its own, or does not act as the employer.Workers' Statute (Estatuto de los Trabajadores)Checked 2 Oct 2026

The consequences

Both companies are jointly liable to the worker and to the Seguridad Social. The worker can choose to become a permanent employee of either company. Illegal cession is a very serious offence, with a fine of €7,501 to €225,018.Workers' Statute (Estatuto de los Trabajadores), LISOS, offences and sanctions, articles 8 and 40 (BOE)Checked 2 Oct 2026

Temporary work agencies (ETT)

An ETT needs an authorisation before it starts. The client directs the work of an ETT worker. But an ETT contract is allowed only in the cases where the client could use a fixed-term contract, such as a temporary rise in work. The ETT worker gets the same essential terms as the client's own staff, including the extra payments.Ley 14/1994, temporary work agencies (ETT) (BOE), Workers' Statute (Estatuto de los Trabajadores)Checked 2 Oct 2026

Employers of record

No official Spanish source names employers of record. In a usual EOR service, you direct the work of the person for an open-ended period. This is close to the case that article 43 describes. Whether a given service is an illegal cession depends on its facts and on the courts.Workers' Statute (Estatuto de los Trabajadores)Checked 2 Oct 2026

The providers do not agree on this. Boundless says on its Spain guide that it cannot act as an EOR in Spain, because the model counts as illegal cession. Skuad says that it uses an ETT-licensed structure in Spain. WorkMotion says that its Spanish entity holds labour leasing licences. Deel, Remote and Oyster say that they employ people through their own Spanish companies, but their pages say nothing about article 43.

Ask each provider these questions before you sign:

• Is your Spanish company, or your partner, an authorised ETT? Can we see the authorisation?
• If not, how does your service avoid an illegal cession under article 43?
• Who directs the daily work, and what does the contract say about it?
• Who pays if a court finds an illegal cession?

These rules are complex. Ask a Spanish employment lawyer how they apply to your case. Boundless is not in our provider table, because it says that it does not offer EOR in Spain.

Sources: Boundless Spain guide, Skuad Spain page, WorkMotion blog, Deel vs Remote vs WorkMotionChecked 2 Oct 2026

Employment rules

Minimum wage

€1,221 a month in 14 payments, or €40.70 a day, from 1 January 2026. The yearly minimum is €17,094.Real Decreto 126/2026, the 2026 minimum wage (BOE), La Moncloa, Council of Ministers, 17 Feb 2026Checked 2 Oct 2026

Working hours

At most 40 hours a week, as an average over the year, and normally at most 9 hours a day. At least 12 hours of rest between two working days, and 1.5 days of rest each week. The employer records the start and the end of each working day, and keeps the records for 4 years.Workers' Statute (Estatuto de los Trabajadores)Checked 2 Oct 2026

A shorter week

A bill to cut the week to 37.5 hours did not pass. Congress rejected it on 10 September 2025.Congreso, the bill to reduce the working week (121/000058)Checked 2 Oct 2026

Annual leave

At least 30 calendar days of paid leave a year.Workers' Statute (Estatuto de los Trabajadores)Checked 2 Oct 2026

Public holidays

Up to 14 paid public holidays a year, of which 2 are local. In 2026, 8 days are holidays in all regions, and each region sets the others.Workers' Statute (Estatuto de los Trabajadores), Resolution of 17 October 2025, public holidays for 2026 (BOE)Checked 2 Oct 2026

Two extra payments

The employee has a right to two extra payments a year, one at Christmas. A collective agreement can spread them over the 12 monthly payments.Workers' Statute (Estatuto de los Trabajadores)Checked 2 Oct 2026

Probation

Unless the collective agreement says otherwise: at most 6 months for qualified technicians, and 2 months for other workers. In a company with fewer than 25 workers, at most 3 months for workers who are not qualified technicians. At most 1 month for a fixed-term contract of 6 months or less.Workers' Statute (Estatuto de los Trabajadores)Checked 2 Oct 2026

Written terms

From 5 October 2026, the employer must give the essential terms of the contract in writing before the work starts.Real Decreto 723/2026, written information on the contract (BOE)Checked 2 Oct 2026

Dismissal and severance

An objective dismissal needs 15 days of notice and pays 20 days of salary for each year of service, up to 12 months. An unfair dismissal pays 33 days for each year, up to 24 months. The end of a fixed-term contract pays 12 days for each year.Workers' Statute (Estatuto de los Trabajadores)Checked 2 Oct 2026

Birth and parental leave

Each parent gets 19 weeks of birth and childcare leave, and the first 6 weeks after the birth are compulsory. The Seguridad Social pays 100% of the base. Each parent can also take up to 8 weeks of parental leave before the child is 8, without pay.Workers' Statute (Estatuto de los Trabajadores), Real Decreto-ley 9/2025, 19 weeks of birth leave (BOE)Checked 2 Oct 2026

Sick leave

For a common illness, there is no benefit for the first 3 days. The employer pays 60% of the base from day 4 to day 15. The Seguridad Social pays from day 16, and the benefit rises to 75% from day 21.General Social Security Act (LGSS) (BOE), Seguridad Social, temporary incapacityChecked 2 Oct 2026

Payroll and taxes

The employer, or the EOR, registers with the Seguridad Social (TGSS) before it starts, and it gets a contribution account code. It registers each worker before the first day of work. Since 1 August 2026, it reports a worker who leaves within 6 calendar days. All employers use the Sistema RED to file, and they pay the contributions in the month after the month of pay.

The contributions apply to the monthly pay, with a part of the two extra payments, up to €5,101.20 a month. Each contribution group has a minimum base. Above the maximum base, the employer pays a solidarity contribution of 0.96% to 1.22% on the pay in each band.

The employer takes income tax (IRPF) out of the pay. It files Form 111 for each quarter, in the first 20 days of April, July, October and January. Large companies file it each month. It files the yearly summary, Form 190, in January.

An employee who moves to Spain can choose the special regime for posted workers (the "Beckham law"). The employee then pays 24% on employment income up to €600,000, for the year of the move and the next 5 years. The person must not have been a Spanish tax resident in the 5 years before, and the move must come with a job with an employer in Spain. We found no official statement on employees of an EOR.

In 2027, the employer's MEI rate rises to 0.83%, and the solidarity rates rise too. The 2027 maximum base is not set yet.

Sources: General Social Security Act (LGSS) (BOE), Real Decreto 84/1996, registration of employers and workers (BOE), Real Decreto 643/2026, 6 days to report a worker who leaves (BOE), Orden PJC/297/2026, the 2026 contribution rules (BOE), Seguridad Social, the solidarity contribution (PDF), Agencia Tributaria, the duties of the withholder, Personal Income Tax Act (LIRPF), articles 93 and 99 (BOE), Agencia Tributaria, the special regime for posted workersChecked 2 Oct 2026

Payroll in Spain: an EOR or a local payroll company?

A local payroll company (a gestoría or an adviser) calculates the pay, the tax and the contributions, and it files the returns. It does not employ the person. Your company stays the legal employer, with all the duties of an employer under Spanish law.

Registration

A foreign company registers with the Seguridad Social before the work starts. It needs no workplace in Spain, but it gives an address in Spain and names a representative there. The representative can be the worker or an adviser.Ministry of Labour, a company abroad with a worker in Spain, Real Decreto 1415/2004, contribution collection, article 16 (BOE)Checked 2 Oct 2026

Income tax

A company with no permanent establishment in Spain must still withhold income tax from the salary that it pays.Personal Income Tax Act (LIRPF), articles 93 and 99 (BOE)Checked 2 Oct 2026

Work from a home country

If the person works less than 50% of the time from Spain, an EU agreement on cross-border telework can keep them in the social security system of the employer's country.Ministry of Labour, a company abroad with a worker in SpainChecked 2 Oct 2026

So in Spain, your company can be the employer itself, with a local payroll company. You then direct your own employee, so the question of article 43 does not come up. With an EOR, ask how the provider deals with article 43. Ask a tax adviser if an employee in Spain creates a taxable presence (a permanent establishment) for your company.

Sources: Ministry of Labour, a company abroad with a worker in Spain, Real Decreto 1415/2004, contribution collection, article 16 (BOE), Personal Income Tax Act (LIRPF), articles 93 and 99 (BOE)Checked 2 Oct 2026

Benefits

The law requires the social security contributions, the two extra payments, 30 days of leave and the public holidays.

The collective agreement for the sector often adds pay, allowances and other benefits. Ask your provider which agreement applies.

Sources: Workers' Statute (Estatuto de los Trabajadores), Orden PJC/297/2026, the 2026 contribution rules (BOE)Checked 2 Oct 2026

How hiring through an EOR works

1. Compare providers and ask for quotesAsk for the monthly fee in Spain, the deposit, the exchange rate and the notice period of the EOR contract. Ask how the provider deals with article 43.
2. Agree the employment termsAgree the yearly salary, the start date, the leave and the probation period with the candidate. Make clear if the salary includes the two extra payments.
3. The EOR signs the contractThe EOR becomes the legal employer. It registers the worker with the Seguridad Social before the first day of work.
4. The EOR runs the payrollEach month, the EOR pays the salary and takes out the income tax and the employee's contributions. It pays the contributions to the Seguridad Social and the tax to the Agencia Tributaria.
5. You manage the daily workYou set the tasks and the goals. The EOR handles the employment administration.

Sources: Real Decreto 84/1996, registration of employers and workers (BOE), Agencia Tributaria, the duties of the withholderChecked 2 Oct 2026