How to hire employees in Spain: Processes, cost, and more in 2026

You can hire employees in Spain by setting up a local entity, engaging independent contractors where appropriate, or using a workforce management platform with an ETT license that helps you onboard talent and manage payroll and compliance without establishing a local entity. The right approach depends on your hiring goals, timeline, and long-term plans in Spain.

Hiring employees in Spain requires you to navigate employment laws, social security obligations, payroll requirements, and worker classification rules. Businesses looking to hire in Spain typically choose between establishing a local entity or partnering with a workforce management solution to engage talent compliantly.

Companies often use an Employer of Record (EOR) to onboard talent in a new country without setting up a local entity. However, this model is not legally recognized in Spain. Instead, businesses may use an ETT-licensed temporary employment agency like Payoneer Workforce Management for support with compliantly engaging local talent.

This guide explains how to hire employees in Spain, what legal considerations employers need to follow, and how a workforce management platform helps simplify the process for companies engaging talent in Spain.

Book a demo today to see how we can help with hiring in Spain.

How to hire employees in Spain?

Global organizations, like American companies hiring in Spain, can choose from three pathways: setting up a legal entity in Spain, hiring contractors, or using a workforce management platform.

Here’s how they compare:

Factor	Local Entity	Independent Contractors	Workforce Management Platform
Time to Hire	Slowest, usually 2-3 months	Fast, a few days	Fast, a few business days
Cost	Highest	Lower	Predictable per-employee fee
Compliance Responsibility	Fully on employer	On you, with misclassification risk.	The platform supports payroll, taxes, onboarding, and local labor law compliance
Compliance Risk	Lower when managed correctly	Higher due to the risk of employee misclassification	Lower, with compliance support and local expertise
Local Entity Required	Yes	No	No
Best For	Companies establishing a long-term presence in Spain	Short-term projects, freelancers, and specialized talent	Businesses looking to hire employees in Spain quickly, without establishing a local entity

Companies trying to expand quickly often prefer workforce management support because it reduces administrative burden and helps manage local employment requirements. 

Payoneer Workforce Management offers a flexible and efficient solution for companies engaging talent in Spain. Here’s everything you need to know about using a workforce management platform in Spain.

Where can you find employees in Spain?

You can source talent in Spain through online job boards, recruitment agencies, or a workforce management platform. Job boards provide access to a broad talent pool, recruitment agencies can reduce the time to hire, and workforce management platforms combine hiring support with onboarding and compliance guidance.

Popular job boards in Spain

• LinkedIn: LinkedIn is one of the best platforms for employers looking to hire skilled professionals. You can post one free job advert at a time.
• Indeed Spain: A great platform to recruit entry and mid-level roles; you can advertise jobs for free or run paid ads.
• InfoJobs: InfoJobs is one of the most popular job websites in Spain. It’s a good platform for a wide range of industries and provides access to a large candidate database.
• Tecnoempleo: Tecnoempleo is a specialized job board in Spain designed for technology and IT roles. It’s one of the best places to find top tech talent in Spain.
• Trabajos.com: Trabajos is known for its database of blue-collar roles, but it’s particularly good for employers recruiting in the construction, manufacturing, or logistics industries.
• Empléate: Empléate is a job platform run by the Spanish government. Employers can advertise roles on this site for free, and it’s a great way to reach job seekers with a wide range of skills.

These platforms can help employers reach a wide range of candidates, from entry-level employees to experienced specialists. 

Work with local recruitment agencies

If you need to fill positions quickly or require support with candidate screening, partnering with a local recruitment agency can be an effective option. Recruitment firms have deep knowledge of the Spanish labor market and can help identify qualified candidates, particularly for specialized or hard-to-fill roles.

However, recruitment agencies typically come at an additional cost and may charge placement fees or a percentage of the hired employee’s salary.

Use a workforce management platform

Workforce management platforms, like Payoneer Workforce Management, may offer localized talent acquisition support alongside onboarding and compliance assistance. With this approach, your business retains complete control over hiring decisions while the platform may assist with employment contracts and onboarding.

This helps engage talent in Spain quickly, with guidance to understand local employment laws.

How to know if you need a workforce management platform?

There are a few signals to look for to assess the requirement for a workforce management platform, like:

• The thought of navigating local payroll, setting up a bank account, and registering your business feels confusing.
• Understanding local employment laws feels like a learning curve, which demands a lot of effort and time, which could have gone into growing core business.
• Setting a team independent team of business operations just to hire, pay, and manage local employees feels like additional HR and administrative overhead.

In such cases, you can use a workforce management platform like Payoneer Workforce Management, which can support the onboarding process without a local entity, from employment contract to payroll and benefits schemes set up. It will help you navigate the local labor and employment laws.

Book a demo today!

How to onboard employees in Spain?

Here are some key steps to follow when onboarding an employee in Spain.

1. Obtain required documents: You should make sure you’ve gathered all necessary documents from local talent in Spain, including copies of any educational certificates required for the role.
2. Set up payroll, benefits, and leave systems: Employers should set up new employees on payroll, benefits, and leave systems as soon as possible. Be sure to comply with local Spanish labor laws and pay employees in the local currency, euros.
3. Share cultural tips: Send your new employee a welcome email on their first day. This is a great opportunity to introduce the team and share tips on your company culture.
4. Share bilingual materials and training: Spain is considered a multilingual country, so training materials should be provided in both English and Spanish.
5. Register the employee with Spanish Social Security (TGSS): Before the employee starts work, employers must register them with Spain’s Social Security system and complete any required employment notifications with the relevant authorities.

      Onboarding in Spain means collecting the right documents, issuing a compliant contract, registering the hire with the social agencies, and setting up payroll and benefits before day one. A structured, culturally aware process helps a new employee settle in quickly.

Payoneer Workforce Management can help with onboarding, from registering employees to setting up compliant contracts and benefits from the start.

What are the key employment laws in Spain?

Employers in Spain must follow the administered Estatuto de los Trabajadores (Workers’ Statute) by the Ministry of Labour and Social Economy (MITES), on contracts, working hours, statutory benefits, and termination. You must comply with key employment laws and requirements.

Here are some key employment requirements to help you manage each stage of the employee lifecycle. For a deeper look, see our employment guide for Spain.

What should an employment contract include?

All employment contracts in Spain must include:

• The employee’s full name and address
• Job title and description
• Contract type (e.g., fixed-term or permanent)
• Start date (and end date if the contract is fixed-term)
• Agreed salary and any additional compensation
• Benefit entitlements
• Typical working hours
• Details of the probation period
• Termination rules and processes
• Employee’s statutory rights

What are the mandatory employee leaves in Spain?

All employees living and working in Spain are entitled to periods of paid leave. These include paid leave, parental leave, sick leave, and more.

Below are the key leave policies that all employers must comply with when they engage talent in Spain

Public holidays	Spain observes 14 public holidays: 8 national holidays (Common to every province in Spain) 4 Holidays Province-Wise 2 Holidays Locality-Wise
Paid leave	Employees in Spain are entitled to at least 30 calendar days of paid annual leave. This equates to 22 working days.
Parental leave	New parents get 19 weeks of paid leave at 100% of their normal wage.
Sick leave	If Spanish employees are unable to work for more than 3 days, their employer pays them 60% of their normal wage. If they are still unwell after 20 days, they are entitled to 75% of their normal wage, paid by the Spanish social security system.
Marriage leave	Employees in Spain are entitled to 15 days of paid leave when they get married.

What are the working hours and overtime rules in Spain?

Employees in Spain shouldn’t work more than 40 hours per week or more than 80 hours of overtime each year. Overtime should also be compensated with additional pay at 1.75 times the hourly rate or rest periods.

What are the Tax obligations in Spain?

Tax obligations in Spain include income tax, social security, and the professional training fund. Here is a table to help you understand better.

Income tax	Employers are responsible for withholding between 19% and 47% of their employees’ salaries, depending on their earnings.  Spain also has a “solidarity contribution” for annual earnings over EUR 4,909.50 per month. This starts from 0.77% borne by the employer and 0.15% by the employee.
Social security	Both the employer and employee contribute to the Spanish social security system, providing 30.57% and 6.48% respectively.  These contributions go towards state-funded healthcare, pensions, unemployment benefits, maternity and paternity leave, and more.
Professional training fund	Known locally as the Fundación Estatal para la Formación en el Empleo (FUNDAE), the professional training fund is a government foundation designed to promote training for employment in Spain.

You can visit the official website of the Spanish Ministry of Finance for detailed tax policies of Spain.

Our payroll guide for Spain explains the policies in simpler language.

How does termination and severance work in Spain?

In Spain, employers can legally terminate employment based on either disciplinary or objective reasons.

Type of Dismissal	Details
Disciplinary	This is when the employee has done something wrong.  This includes repeated and unjustified absences from work or a deliberate and continuous decline in job performance.  You do not need to give any notice for disciplinary dismissals.
Objective	This is when the employer dismisses the employee based on objective grounds, such as an inability to adapt to technical changes in their position, or redundancy caused by factors beyond the employee’s control.  You need to give 15 days’ notice in this case.

If you have to make your employee redundant due to economic, technical, organizational, or production-related reasons, they are entitled to severance pay. This equates to 20 days of pay for every year they’ve worked for you, up to a maximum of 12 months’ pay.

How can Payoneer Workforce Management help you hire in Spain?

Global companies hiring in Spain must understand local labor and employment legislation. This includes complying with tax obligations, working hours, vacation allowances, and employee benefits. 

Payoneer Workforce Management offers a complete solution for global employment, from onboarding local talent quickly to running global payroll securely in a few clicks. Our unified platform helps you to:

• Onboard talent in 160+ countries without opening a local entity
• Run global payroll across multiple currencies
• Support with taxes, benefits, compliance, time tracking, and documentation

Payoneer Workforce Management starts at $249 per employee per month, with final pricing depending on headcount and contract structure.

Book a demo today to learn more.

Frequently asked questions (FAQs)

About the author

Martyna Krawczyk

HR and Immigration Lawyer, Global HR Operations 

Martyna Krawczyk is an HR and Immigration Lawyer and Associate within the Global HR Operations team at Payoneer Workforce Management (formerly Skuad). She holds an LPC LL.M. from the University of Law in the UK and an Associate CIPD certification. Martyna also serves as Vice President of the Labour Law Association of Poland and was recognized at the Wolters Legal Hackathon 2024. Her areas of focus include international employment law, cross-border workforce compliance, and global immigration, supporting organizations in managing international workforces.