Hiring in Spain

By Mary Jones, International Employment Specialist · Reviewed by Sarah Bloom, Editor · Updated 30 September 2026 · How we rank providers

Our starting shortlist

For a small team hiring in Spain, compare these EOR providers after establishing a lawful employment arrangement.

TeamedHR leaders seeking local expertise, personal support and clear employment costs.
RemoteConnected HR systems
DeelEmployees and contractors together

The cost in our example

€66,075annual employment cost

For a €50,000 office salary in our 2026 example, before provider fees.

Primary source ↗

The Spanish employer must do more than process payroll: an arrangement in which your business directs supplied workers can breach labour-supply rules. Compare management fees, FX and extras before choosing a provider.

Which EOR providers should you compare in Spain?

Last checked 29 September 2026. Equal overall scores are ordered by cost transparency/FX: Teamed 5.0, Remote 4.7, Deel 3.7. This puts them first, second and third without changing their overall scores.

Spain · € equivalents per employee / month · checked 29 September 2026
Provider / our score	Fees	Employing entity	Best for	Differentiator	Watch-out
014.7 / 5Cost transparency/FX: 5.0 / 5Read review →	Management€527Typical monthly fee€527per employee / monthModel estimate	Not disclosed	HR leaders seeking local expertise, personal support and clear employment costs.	Local employment experts who explain the next step and take responsibility for helping you through it. No FX markup on payroll currency conversion. Itemised employment costs make funding and reconciliation easier to plan; exchange rates and other charges still matter.	Generally no exit fee or 12-month lock-in. At Teamed’s discretion, one month’s management fee may apply when employment ends within the first three months. Countries can include Saudi Arabia, Belgium and France; this list is not exhaustive. Confirm applicable terms in the quote and agreement. Source ↗
024.7 / 5Cost transparency/FX: 4.7 / 5Read review →	ManagementFrom €615Typical monthly feeFrom €773per employee / monthModel estimate	Own Spanish entity	An HR team adding overseas employees to its existing HR systems	Employment and HR administration in one platform	Starting fee exceeds the lowest-priced providers here Source ↗
034.7 / 5Cost transparency/FX: 3.7 / 5Read review →	ManagementFrom €527Typical monthly feeFrom €685per employee / monthModel estimate	Own Spanish entity	A business managing employees and contractors in the same workflow	Employees and contractors in one platform	Starting fee exceeds RemoFirst and IberiaEOR in this table Source ↗
044.3 / 5Read review →	ManagementFrom €615Typical monthly feeFrom €773per employee / monthModel estimate	Not disclosed	A distributed team giving employees access to their own payroll records	Documented hiring and payroll workflows	Annual EOR seats are non-refundable Source ↗
054.3 / 5Read review →	ManagementFrom €175Typical monthly feeFrom €334per employee / monthModel estimate	Partner entity	A small team hiring abroad with a tight provider-fee budget	Low advertised management fee	The advertised starting fee varies with local country requirements Source ↗
064.3 / 5Read review →	ManagementFrom €527Typical monthly feeFrom €685per employee / monthModel estimate	Not disclosed	An HR team coordinating employee onboarding across several countries	Employment administration and HR-system connections	Contractor management is a separately priced product Source ↗
074.0 / 5Read review →	ManagementFrom €404 · annual contractTypical monthly feeFrom €562per employee / monthModel estimate	Not disclosed	A business with a settled hiring plan that can commit annually	Payroll and employee workflows in one platform	The listed starting price requires an annual contract Source ↗
083.9 / 5Read review →	ManagementFrom €527Typical monthly feeFrom €685per employee / monthModel estimate	Not disclosed	A business consolidating EOR employees under a direct-employer service	Markets a direct-employer service	Currency conversion includes a markup on the OANDA spot rate Source ↗
093.7 / 5Read review →	Management€527Typical monthly feeFrom €685per employee / monthModel estimate	Not disclosed	A US employer adding its first employees outside the US	International hiring alongside HR administration	Onboarding is guided rather than self-service Source ↗
103.7 / 5Read review →	Management€281–562Typical monthly feeFrom €439–720per employee / monthModel estimate	Not disclosed	A small HR team seeking a human contact for overseas employment	Publishes direct and partner delivery options	Published price is a range, not one fixed fee Source ↗
113.3 / 5Read review →	ManagementFrom €499Typical monthly feeFrom €658per employee / monthModel estimate	Own Spanish entity	An HR team coordinating payroll across several hiring countries	Country-specific payroll administration	Services outside the agreed scope can incur separate charges Source ↗
122.8 / 5Read review →	Management€299Typical monthly feeFrom €458per employee / monthModel estimate	Not disclosed	A business making its first Spanish hires before expanding elsewhere	Spain-specific starting price	Recorded management fee exceeds RemoFirst’s starting fee in this table Source ↗

Scroll across to compare every column

How much does it cost to hire a developer in Madrid through an EOR?

For a Madrid developer on an illustrative €50,000 annual salary, this page’s office-worker model gives €66,075 before provider fees. Salary includes the extra payments; employer contributions add €16,075, including the assumed 1.50% office occupational tariff.

The page’s disclosed service-fee and extras assumptions bring the annual budget to €75,257.25. This is a worked scenario, not a developer salary benchmark or supplier quote.

The provider must confirm the correct occupational classification for the actual duties and workplace. Remote work is not automatically eligible for the exclusive-office tariff. See the worked example for every assumption; a change in salary, tariff or fee changes the result.

Scroll across for the calculation and annual amounts →

One Spain employee, €50,000 annual gross salary, 2026. All amounts in EUR.
Cost	Calculation	Annual amount
Gross salary, including extra payments	Annual salary agreed	€50,000.00
Employer social security	€50,000 × 32.15%	€16,075.00
Employment cost before fees	Salary + employer contributions	€66,075.00
Management fee assumption	€600 × 12	€7,200.00
FX and extras allowance	€66,075 × (2% FX + 1% extras)	€1,982.25
Total annual budget	Employment cost + management + extras	€75,257.25

Sources: Seguridad Social: 2026 contribution rates · Order PJC/297/2026: contribution rules · 2026 occupational-risk tariff

Is using an EOR in Spain legal given the rules on cesión ilegal de trabajadores?

Yes, through a lawful employment arrangement. In Spain, an authorised temporary-work agency (ETT) can supply workers within Ley 14/1994 and its assignment conditions. Genuine outsourced services are another route, but the employer must actually organise and direct the service.

A payroll-only employer while your business directs the worker can breach Article 43 of the Estatuto de los Trabajadores on unlawful labour supply. Owning a Spanish company does not itself authorise that supply. The decisive question is how employment operates in practice, not whether the provider markets its service as an EOR.

Before signing, identify the employing company, its legal basis and who supervises the work. For an ETT arrangement, assess the permitted assignment conditions in Ley 14/1994 Article 6.

Unlawful supply can make both businesses jointly liable for employment and social-security obligations. The worker can also claim permanent employment with either business under Article 43. An indefinite role managed entirely by your team requires particular scrutiny.

Sources: Spanish legislation / BOE · Garrigues, published by International Bar Association (commentary) · Álvaro Porcar Abogados (commentary) · Ley 14/1994: temporary-work agencies

See the country provider shortlist →

What is the probation period in Spain?

Without a different collective-agreement provision, the limits are six months for qualified technicians and two months for other workers. In firms with fewer than 25 workers, the latter limit is three months.

ET art. 14 requires probation to be agreed in writing. For certain fixed-term contracts lasting no more than six months, the default limit is one month unless the collective agreement says otherwise. A fresh probation period is invalid if the person has already performed the same functions for that employer.

Sources: Estatuto de los Trabajadores, art. 14

How do the 14 salary payments (pagas extraordinarias) work for an EOR employee in Spain?

Spain requires two extra salary payments each year under Article 31 of the Estatuto de los Trabajadores. The applicable collective agreement can allow monthly prorating, so the employee may receive twelve payslips rather than fourteen separate payments.

Set the annual gross salary and payment schedule explicitly. Do not add two extra payments again if they are already included in the agreed annual salary.

Sources: Estatuto de los Trabajadores · Labour Ministry: collective bargaining and extra payments

Can an EOR in Spain support the digital nomad visa?

Ordinary employment by a Spanish EOR company does not fit the employee route for Spain’s international teleworker visa. That route requires remote employment for an employer outside Spain.

The separate permission for up to 20% Spanish professional activity concerns self-employed professional work, not a general exception for local EOR employment. Preserve an eligible foreign-employer arrangement or assess a different work-authorisation route before switching contracts.

Sources: UGE: international teleworker FAQ · Spanish Consulate: telework visa

When should I set up a Spanish SL instead of using an EOR?

At twelve employees in year one, or eleven over two years, the entity becomes cheaper in our example. Below that, its fixed overhead costs more than the EOR fees it replaces.

This is our own comparison model, not one supplier’s package. It assumes €6,000 setup, €300 per employee per month for HR and payroll, €1,000 monthly accounting, €40,000 a year for half of an internal role and €3,600 for local incidentals. The EOR side uses €600 monthly management and the same FX/extras allowance as the salary example above.

The internal role needs enough Spanish-language capability or local help to manage employment issues and filings. Allow for address or serviced-office charges, notary work, translation, banking and specialist advice. Complexity can push these costs substantially higher.

An entity is not simply a cheaper invoice. You take on registrations, payroll oversight and employer responsibilities. Before switching, price the overlap, migration work, provider notice and any minimum service term. Salary and statutory employer costs are excluded from both sides of this table because the example keeps them identical.

Scroll across for the calculation and annual amounts →

EOR versus entity: administration costs only, same team throughout, all amounts in EUR.
Employees	EOR: 12 months	Entity: 12 months	EOR: 24 months	Entity: 24 months
1	€9,182.25	€65,200.00	€18,364.50	€124,400.00
5	€45,911.25	€79,600.00	€91,822.50	€153,200.00
10	€91,822.50	€97,600.00	€183,645.00	€189,200.00
12	€110,187.00	€104,800.00	€220,374.00	€203,600.00
15	€137,733.75	€115,600.00	€275,467.50	€225,200.00

Sources: ICEX: establishing a Spanish business · Royal Decree 421/2015: SL incorporation

What severance is due for unfair dismissal of an EOR employee in Spain?

Unfair-dismissal compensation is generally 33 days’ salary per year of service, capped at 24 months, when compensation rather than reinstatement is the applicable outcome.

Service before 12 February 2012 has transitional calculation rules. This differs from a qualifying objective dismissal’s compensation, and a void dismissal can require reinstatement. An EOR service cancellation does not determine the employee’s dismissal rights.

Sources: Estatuto de los Trabajadores · ICEX: business guide, dismissal outcomes

Do employee rights transfer when you switch providers?

They can under ET art. 44, but changing payroll suppliers is not automatically a business transfer.

The rule concerns a transfer of an undertaking, business or economic unit that retains its identity. Where it applies, the new employer takes over the employment obligations, with information and consultation requirements. Ask both providers to assess the facts before anyone resigns or signs replacement terms.

Reconcile service dates, outstanding pay, benefits and balances. Agree the last and first payroll dates, responsibility for employee questions and how deposits will be returned. A new supplier contract should not silently reset protected employment rights.

Sources: ET art. 44: succession of employers

Does using a contractor’s company remove falso autónomo risk?

No. Calling someone a contractor or paying their company does not settle whether the work is really employment.

ET art. 1 looks at paid work within another business’s organisation and direction. Control over working arrangements, integration into the team and lack of genuine business independence can point to employment. No single label or contractual clause settles the issue.

Misclassification can lead to employment claims, unpaid contributions and penalties. Moving the person into a lawful employment arrangement addresses future work; it does not erase the earlier period. Compare the contractor’s invoice with a gross-to-net employment illustration before agreeing the change.

Sources: ET art. 1: employment relationship

Can an employee hired through an employer of record in Spain claim the Beckham law regime?

An EOR employee may qualify for Spain’s special inbound-worker tax regime, but the EOR contract does not guarantee it. Article 93 requires an eligible move to Spain and other conditions, including generally no Spanish tax residence in the preceding five tax periods.

Establish the genuine employment and relocation facts and complete the tax election on time. The employee’s tax eligibility is separate from whether the provider’s employment arrangement is lawful.

Sources: Agencia Tributaria: inbound-worker regime scope · PwC: Spain individual tax issues (commentary)

What are employer social security contributions in Spain in 2026?

For ordinary indefinite employment in 2026, the standard employer components total 30.65% of the relevant contribution base before occupational-risk insurance: 23.60% common contingencies, 5.50% unemployment, 0.20% FOGASA, 0.60% training and 0.75% MEI.

It is not a universal percentage of every salary: contribution ceilings, solidarity charges above the ceiling, contract type and occupational tariff affect the bill.

Sources: Seguridad Social: 2026 contribution rates · Order PJC/297/2026: contribution rules

Does a Spanish EOR employee fall under a convenio colectivo?

Yes, where a collective agreement covers the employment, the EOR must apply it. The convenio colectivo can set pay scales, hours, extra payments, probation and other conditions.

Coverage follows the agreement’s functional, territorial and personal scope; “EOR” is not its own universal convenio. Require the provider to identify the agreement and job classification before the offer is signed.

Sources: Estatuto de los Trabajadores · ICEX Invest in Spain: labour framework

Compare providers in Spain See the ranked shortlist →

Work out the full monthly cost

The service fee is one line in the budget. Use amounts from a local quote to separate monthly spending from deposits and other upfront cash.

Default example: one Spain employee earning €50,000 a year. Monthly averages in EUR.
Budget line	Amount
Monthly gross salary	€4,166.67
Monthly employer costs and pension	€1,339.58
Monthly management fee	€600.00
Monthly FX and extras allowance	€165.19
Total monthly spending	€6,271.44
First-year spending	€75,257.28
One-off setup	€0.00
Refundable deposit	€4,166.67
Cash for first month, setup and deposit	€10,438.11

Sources and cost assumptions

Figures checked 29 September 2026. The example assumes ordinary indefinite employment, qualifying exclusive office work and a full year at the stated salary. Collective agreements, benefits and individual circumstances can change the bill. These are planning examples, not quotations or legal advice.

Provider fee equivalents use EUR 1 = USD 1.1378 and round up to whole euros. Likely fees use a monthly payroll of USD 6,000 with 2% FX and 1% extra-fee allowance, unless confirmed terms differ. That catalogue comparison is separate from the €50,000 salary example.

Where no estimate was recorded, we add the same model allowance to the published starting fee (including both ends of a price range). These are estimates, not confirmed charges.

“Not disclosed” means Spanish entity ownership was not established in the sources reviewed. Confirm the Spanish employer, service scope, deposit, minimum term and leaving fees before signing.

The worked example uses our own €600 monthly management assumption, 2% FX on employment cost and a 1% extras reserve. Those percentages are assumptions, not claims about a particular provider. If no currency conversion occurs, remove the FX line. The calculator includes an illustrative one-month-salary deposit and zero setup fee; replace both with the actual quote. Exit costs, extra benefits and transition overlap are additional.

Hiring in Spain

Which EOR providers should you compare in Spain?

How much does it cost to hire a developer in Madrid through an EOR?

Is using an EOR in Spain legal given the rules on cesión ilegal de trabajadores?

What is the probation period in Spain?

How do the 14 salary payments (pagas extraordinarias) work for an EOR employee in Spain?

Can an EOR in Spain support the digital nomad visa?

When should I set up a Spanish SL instead of using an EOR?

What severance is due for unfair dismissal of an EOR employee in Spain?

Do employee rights transfer when you switch providers?

Does using a contractor’s company remove falso autónomo risk?

Can an employee hired through an employer of record in Spain claim the Beckham law regime?

What are employer social security contributions in Spain in 2026?

Does a Spanish EOR employee fall under a convenio colectivo?

Work out the full monthly cost

Sources and cost assumptions

Find the right route for your team

Startups

Growing businesses

Enterprise

Switching providers

Contractor conversion

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Hiring in Spain

Which EOR providers should you compare in Spain?

How much does it cost to hire a developer in Madrid through an EOR?

Is using an EOR in Spain legal given the rules on cesión ilegal de trabajadores?

What is the probation period in Spain?

How do the 14 salary payments (pagas extraordinarias) work for an EOR employee in Spain?

Can an EOR in Spain support the digital nomad visa?

When should I set up a Spanish SL instead of using an EOR?

What severance is due for unfair dismissal of an EOR employee in Spain?

Do employee rights transfer when you switch providers?

Does using a contractor’s company remove falso autónomo risk?

Can an employee hired through an employer of record in Spain claim the Beckham law regime?

What are employer social security contributions in Spain in 2026?

Does a Spanish EOR employee fall under a convenio colectivo?

Work out the full monthly cost

Sources and cost assumptions

Find the right route for your team

Startups

Growing businesses

Enterprise

Switching providers

Contractor conversion

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