How much does it cost to hire an employee through an EOR in Spain?

EOR pricing typically ranges from $400–$700 per month per employee, plus the employee's base salary and benefits. Beyond the EOR fee, you'll pay: (1) **Base salary**—market rate for the role in Spain. (2) **Employer contributions**—approximately 30% on top of salary for taxes, social insurance, and mandatory benefits. (3) **Optional benefits**—health insurance, bonuses, stock options. For example, hiring a developer earning $3,000/month would cost approximately $3,000 + (30% = $900) + $500 EOR fee = $4400/month total.

Is using an EOR legally safe in Spain?

Yes, using an EOR in Spain is fully legal and compliant when you work with established providers like Deel, Remote, or Oyster. These providers are registered employers in Spain and handle all legal obligations. Spain has high employer contribution (~30%) but provides comprehensive employee protections. The Labor Law (Estatuto de los Trabajadores) is detailed and employee-protective. Regional variations exist. Recent labor reforms strengthened worker rights. The EOR assumes the legal employer role, so you avoid misclassification risks that come with contractor arrangements. However, choose reputable EOR providers with proven track records in Spain—smaller or unregistered providers carry significant risk.

How long does it take to onboard an employee through an EOR in Spain?

With an EOR, the typical timeline is 14 days from offer acceptance to the employee's first paycheck. The process includes: (1) **Days 1–2**: Background checks and document verification. (2) **Days 3–7**: Employment contract in local language, tax registration. (3) **Days 8–14**: Payroll setup, benefits enrollment, system access. This is dramatically faster than hiring via a subsidiary (which typically takes 2–3 months), making EOR ideal for time-sensitive hiring.

Should I use an EOR or set up a legal subsidiary in Spain?

Use an **EOR** if you're: hiring your first employee in Spain, want to avoid legal complexity and ongoing compliance costs, or plan to hire fewer than 5 people. EORs typically cost $400–$700/month per employee and offer simple, predictable pricing with zero additional administrative burden. Use a **subsidiary** if you're: planning to hire 10+ people in Spain, want direct control over hiring and contracts, or are already established in the country. Setting up a subsidiary takes 2–3 months and costs $2,000–$10,000 in legal and accounting fees, but gives you flexibility and lower per-employee costs long-term. For most small companies hiring their first international team, EOR is the faster, safer choice.

Which EOR providers support hiring in Spain?

The major EOR providers supporting Spain are: **Deel** (150+ countries), **Remote** (80+ countries), **Oyster** (130+ countries), **Rippling** (50+ countries), and **Multiplier** (150+ countries). Each offers similar core features—payroll, compliance, tax handling—with varying prices, customer support, and platform quality. Compare based on: (1) **Price**: $400–$700/month, (2) **Support quality**: Check reviews for your timezone, (3) **Feature set**: Some offer built-in benefits, others are payroll-only, (4) **User experience**: Platform simplicity varies significantly.

What happens to my EOR employee if I stop using the EOR service?

If you decide to leave an EOR service, your options depend on your long-term plan: (1) **Switch to another EOR**: The employee transitions to a new EOR provider within days—no job loss. (2) **Set up a local subsidiary**: The employee becomes employed by your subsidiary. Most EOR providers can help facilitate this transition. (3) **Separate from the employee**: You can terminate the employment agreement with notice (typically 30–60 days in Spain), following all local severance requirements. Because the EOR is the legal employer, any transitions or terminations must comply with Spain's labor laws—another reason to use established, licensed EOR providers.

Employer of Record in Spain

Q: What are the mandatory benefits I need to provide to employees in Spain?

Spain requires employers to provide several mandatory benefits: - **Social Security**: Employer contributes ~30% (varies by region): 28.3% pension/health, 1.7% unemployment. - **Annual Leave**: Minimum 22 days per year. - **Severance**: If terminated without cause: 20 days per year of service, 9-month cap. - **Sick Leave**: Full pay for work-related illness/injury covered by social security. - **Parental Leave**: Up to 16 weeks for mothers, 8 weeks for fathers with job protection. These benefits are built into the EOR fee and handled automatically by your EOR provider. You don't need to manage them separately—just pay the total monthly fee and the EOR handles all compliance.

Onboarding Time

14 days

Employer Contributions

30%

EOR Providers

Currency

Euro (EUR)

Employer Cost Breakdown in Spain

30%

$1,500

Monthly cost on $5k salary

~$500

Typical EOR fee/mo

14d

Onboarding time

Spain has a mature tech scene, especially in Barcelona, Madrid, and Valencia. Spanish professionals are skilled, educated, and culturally warm. The tech ecosystem is growing with startups and innovation hubs. However, employment in Spain requires understanding comprehensive labor law. Employer burden is substantial (~30% social security) but provides comprehensive benefits: minimum 22 days annual leave, severance requirements, strong sick leave protections, and parental leave. The Labor Law is detailed and employee-protective, with significant severance for termination without cause. Using an EOR in Spain handles social security registration, labor law compliance, severance management, and Spanish tax requirements. Onboarding takes 2-3 weeks.

EOR Providers for Spain

Compare the leading Employer of Record providers for hiring in Spain. All prices are monthly and exclude employee salary and benefits.

Provider	Monthly Fee	Coverage	Best For	Key Features	Action
Deel	$599	150+	Companies scaling globally	Fast onboardingBuilt-in compliance	Get Quote
Remote	$599	80+	Mid-size companies	Own legal entitiesBenefits management	Get Quote
Oyster	$599	130+	Remote-first companies	Guided hiringLocal benefits	Get Quote
Rippling	$600	50+	Tech companies	Unified HR platformIT management	Get Quote
Multiplier	$400	150+	Cost-conscious companies	Competitive pricingMulti-currency payroll	Get Quote

Tip: Most EOR providers offer a free trial or demo. Contact multiple providers to compare features, customer support quality, and specific support for Spain. Pricing and coverage may change after 2026.

Legal Requirements in Spain

NIF (Tax Identification Number)

Social security registration (Seguridad Social)

Labor registration with local authority

Employment contract in Spanish

Compliance with Spanish Labor Law (Estatuto de los Trabajadores)

Mandatory Benefits

Benefit	Description
Social Security	Employer contributes ~30% (varies by region): 28.3% pension/health, 1.7% unemployment.
Annual Leave	Minimum 22 days per year.
Severance	If terminated without cause: 20 days per year of service, 9-month cap.
Sick Leave	Full pay for work-related illness/injury covered by social security.
Parental Leave	Up to 16 weeks for mothers, 8 weeks for fathers with job protection.

Compliance Guide

**Employment Contract**: Must be in Spanish. Specify job title, duties, salary, benefits, work schedule, leave, and severance terms. **Social Security Registration**: Employer contributes ~30% to Seguridad Social (varies by region): 28.3% for pension/health, 1.7% for unemployment. Must register with local social security office. **Annual Leave**: Minimum 22 days per year. Leave must be taken; cannot accumulate indefinitely. Payment for unused leave required at separation. **Severance**: Termination without cause requires: 20 days salary per year of service (capped at 9 months). Termination with cause (misconduct) has no severance. **Sick Leave**: Full pay for work-related illness/injury (covered by social security). Non-work illness: partial pay after 3 days absence. **Work Schedule**: Standard 40 hours/week. Hours over 40 are overtime, payable at 1.75x to 2x depending on circumstances. **Parental Leave**: Mothers: 16 weeks minimum. Fathers: 8 weeks minimum. Both with job protection and partial income replacement via social security. **Regional Variations**: Catalonia, Basque Country, and other autonomous communities have regional labor laws that may supplement or modify state law. Confirm regional requirements. **Tax Compliance**: Progressive income tax (0-45%). Withholding is calculated based on tax brackets and deductions.

Why Use an EOR in Spain?

Spain offers access to Southern European talent and EU membership. EOR handles complex social security registration, regional variations, labor law compliance, and Spanish tax registration.

Other EOR Options in Europe

Ukraine

Onboarding: 14 days

27% contributions→

United Kingdom

Onboarding: 10 days

13.8% contributions→

Germany

Onboarding: 14 days

20% contributions→

Netherlands

Onboarding: 14 days

18% contributions→

Switzerland

Onboarding: 14 days

12% contributions→

Croatia

Onboarding: 14 days

17% contributions→

Hiring in Spain: FAQs

An Employer of Record (EOR) is a third-party company that becomes the legal employer of your remote workers in Spain. You define the role, manage the day-to-day work, and set the compensation. The EOR handles all employer responsibilities: payroll, benefits, tax compliance, employment contracts, and labor law compliance. This means you can hire full-time employees in Spain without establishing a subsidiary or legal entity. The process typically takes 14 days from offer to first paycheck.

Start hiring talent in Spain

Deel handles payroll, compliance, and benefits. No local entity needed.

Hire with Deel