Hiring in Spain: Complete Guide 2027
Everything you need to know about hiring and managing employees in Spain
Overview
Spain offers a large, multilingual workforce with strong talent depth in technology, consulting, and professional services — and functions as a gateway to both European and Latin American markets. Madrid and Barcelona are established tech and startup hubs. Employment law is comprehensive and employee-protective: employer social charges reach approximately 32% of gross salary, collective bargaining agreements (convenios colectivos) govern many employment terms, and dismissal procedures are strictly regulated. An EOR handles SEPE and TGSS registration, monthly contribution filings through the TGSS direct settlement system, and convenio compliance.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Spain
Spanish payroll runs monthly (with 12 or 14 payments depending on the applicable convenio colectivo — many Spanish employees receive extra payments in summer and Christmas). Employer social security contributions total about 32% in 2026: common contingencies including pensions (23.6%), unemployment (5.5%, 6.7% on fixed-term contracts), FOGASA (wage guarantee fund, 0.2%), professional training (0.6%), the intergenerational equity levy (MEI, 0.75%, 0.83% from January 2027) and work-accident cover (1.5% for office roles). An EOR handles TGSS (Social Security Treasury) registration, monthly contribution filings through the direct settlement system, payslip issuance in the legally required format, and IRPF (income tax) withholding and quarterly reporting to AEAT. The applicable convenio colectivo for each employee's sector must be identified and applied — it may impose salary minimums above the statutory SMI.
Key Labor Laws &
Requirements
Employment Contracts
- Written contract required for fixed-term
- Indefinite contract is the default
- Probation 2–6 months depending on role
Leave & Time Off
- 30 calendar days of annual leave minimum (about 22 working days)
- Sick pay from day 4: the employer pays days 4 to 15, Social Security from day 16
- Birth leave of 19 weeks for each parent
Termination Rules
- 15 days' notice for objective dismissal; resignation notice set by the convenio
- Severance 20–33 days per year depending on cause
- Collective dismissals require consultation period
COMPLIANCE
Collective Bargaining and Termination in Spain
Spain's Workers' Statute (Estatuto de los Trabajadores) provides strong collective and individual employment rights. Convenios colectivos — sector-specific collective bargaining agreements — are legally binding and typically set minimum salaries, working hours, and leave entitlements above the statutory floor. Dismissal for objective reasons (e.g. economic, technical, organisational) requires 15 days' notice and severance of 20 days' salary per year of service (capped at 12 months). Unfair dismissal (improcedente) triggers severance of 33 days per year of service (capped at 24 months). An EOR ensures the correct convenio is applied, manages termination procedures, and handles the filings with the labour authority required for collective dismissals.
Figures checked against official sources: Seguridad Social, TGSS (contribution bases and rates 2026, Orden PJC/297/2026, SMI 2026); BOE (Ley General de la Seguridad Social, Estatuto de los Trabajadores, Reglamento del IRPF, Real Decreto 1483/2012, Constitución). Checked November 2026.
Key Challenges
- Employer social charges of about 32% of gross pay
- Strict collective dismissal consultation requirements
- Strong trade union influence in many sectors
- High structural unemployment affects talent supply
- FOGASA contribution adds to cost base
Country Highlights
Advantages
- Large multilingual workforce (Spanish, English, Catalan)
- Gateway to Latin American markets
- EU member with strong legal framework
- Strong tech and engineering talent in Madrid and Barcelona
- Competitive vs. UK and Northern Europe costs
Popular Industries & Roles
Technology
Salary range: €38k-€75k
Madrid and Barcelona have fast-growing tech ecosystems with strong engineering and product talent
Tourism & Hospitality Tech
Salary range: €35k-€70k
Tourism, hospitality, and travel tech are major industries where Spain leads Europe in talent and infrastructure
Sales & Business Development
Salary range: €40k-€80k
Sales and business development roles leverage Spain's position as the gateway to Latin American markets
Top 3 Providers in Spain
Based on our analysis of pricing, compliance record, service quality, and customer reviews
Deel
- EOR in 130+ countries; owned entities in 130+
- Contractor and EOR in one platform
- 200+ integrations including Slack, Workday
- AI-powered compliance automation
Remote
- 100% owned entity model globally
- Compliance-first with IP protection
- Strong contractor management at $29/month
- Rated #1 Global Employment Platform on G2
G-P (Globalization Partners)
- Enterprise EOR across 180+ countries
- Compliance-first with owned entities
- ISO 27001 and SOC 2 Type II certified
- 4,000+ clients; founded 2012
Frequently asked questions
Hiring in Spain through an EOR, in short.
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How much does an employer pay on top of salary in Spain?
Employer contributions in Spain come to ≈32–33.5%; the largest mandatory line is Pension + FOGASA. With the other statutory benefits and a typical EOR fee, budget ~38–48% on top of gross salary.
What does an EOR charge per employee in Spain?
Published EOR fees in Spain run $550–800/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Spain pay in tax and contributions?
Income tax is 19–47% progressive and employee social contributions are 6.50% (4.7% pension), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Spain?
2-5 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Spain?
Deel, Remote and G-P (Globalization Partners) hold the first three places in our ranking for hiring in Spain. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Spain.
Find a better EOR — without risk
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