Spain presents various opportunities for international expansion. According to World Atlas, Spain’s economy ranks fourteenth in the world, with industry, agriculture, and energy being the primary drivers. Furthermore, the information and communications technology (ICT) industry is one of the fastest-growing sectors. With the largest domestic fiber network in the European Union and a robust telecommunications and connectivity infrastructure, Spain is an ideal location for recruiting remote workers.
When it comes to legally employing foreign employees in Spain, there are numerous ways to do so while adhering to the country’s employment laws and payroll restrictions. The following advice can be used to understand how to hire foreign workers in Spain in compliance with the law.
Can I hire someone residing in Spain?
Yes, it is possible to hire a Spaniard. However, the local employment regulations in Spain may differ significantly from those of your own country. Therefore, targeting Spanish talent necessitates an understanding of the employment distinctions and regulatory issues.
How to Recruit Personnel in Spain with a Global PEO
Employing foreign workers in Spain can be done in a variety of ways. The two primary options are partnering with an existing employer and forming a legal corporation. Your business’s path will be influenced by factors such as time, cost, the number of personnel you want to recruit, and your long-term growth objectives.
Partner with a Proven Spain Employer of Record
If you want to test the Spanish market or quickly build up your employees, you can collaborate with a Spain employer of record (EoR).
An employer of record in Spain is the legal organization that is responsible for hiring, paying, and managing your global workforce. A Spain EoR has an in-depth understanding of the country’s employment laws and regulations and hires and onboards your Spanish-speaking personnel in accordance with these laws and regulations. An EoR manages compliance, risk mitigation, recruiting, onboarding, and payroll, while you maintain full control and day-to-day team management.
Expanding Your Business in Spain: Legal Entity and Hiring Options
Spain offers attractive opportunities for businesses looking to grow their international presence. With a robust economy that ranks fourteenth globally, Spain’s primary drivers are industry, agriculture, energy, and the rapidly growing ICT sector. Spain has the largest domestic fiber network in the European Union, making it an ideal location to recruit remote workers. However, foreign businesses looking to hire employees in Spain must understand the country’s unique employment laws and regulations.
If you wish to recruit Spanish staff directly, hire a large number of personnel, or establish a long-term presence in Spain, forming a legal business entity is necessary. This enables you to open a local branch, recruit staff, and manage employment logistics internally. Although entity formation is a time-consuming and complicated process, it gives your business the freedom to manage employment directly.
An alternative to forming a legal entity in Spain is partnering with a Spain employer of record (EoR) to reduce the complexity and cost of entity formation. An EoR manages compliance, risk mitigation, recruiting, onboarding, and payroll, while you maintain full control and day-to-day team management.
Another flexible hiring option is to employ and pay Spanish consultants for short-term projects or ad hoc services. Hiring global contractors provides more flexibility and cost savings that can be used to improve your business. Paying independent contractors is also less difficult and risky than paying full-time workers.
Before hiring employees or contractors in Spain, it is important to evaluate the compliance-related risks. Misclassification of Spanish contractors can result in fines, penalties, legal challenges, and back pay for employee benefits. Spain’s employment laws include unique employee privileges and benefits that foreign businesses must adhere to, such as 30 calendar days of leave, 14 public holidays, and 16 weeks of maternity leave. Employers and workers must also provide 15 days’ notice before canceling an employment contract, and there is no at-will termination in Spain. An employer must have a valid cause and supporting evidence before firing an employee.