Employer of Record in Spain

In Spain, an employer of record arrangement depends on who actually directs the work: if it supplies a worker to the client, Article 43 requires an authorised ETT and a permitted temporary or training assignment. A foreign company can also hire directly without a Spanish subsidiary, as the Spain hiring guide explains. 4dev.com is a global contractor platform working with contractors in Spain, not an employer of record; its route is for genuinely independent services, covered in the contractors guide.

What an employer of record does in Spain

An employer of record is a third-party arrangement in which the provider employs a person and handles employer formalities while a client receives the work. In Spain, the employment contract and administrative records show part of that relationship; the provider’s actual employer functions and the client’s daily direction also matter. That division determines which supplier and contract checks the hire needs.

When is an employer of record arrangement legal in Spain?

Whether an employer of record arrangement is lawful in Spain turns on the substance of the relationship under Article 43 of the Workers' Statute, rather than on the supplier's label. Where the arrangement is temporary worker supply, Article 43 reserves that activity to a duly authorised ETT; it also identifies circumstances in which supply may be illegal.

Who actually directs the employee's work?

Article 43 identifies a mere making-available arrangement, the supplier’s lack of its own stable organisation or means, and its failure to exercise employer functions as relevant indicators. For the proposed role, compare who assigns tasks, determines working methods, supervises performance and applies the working rules.

If the supplier makes a worker available to the client, check its ETT authorisation and then the permitted temporary or training ground for that assignment. Without the authorised route, worker-supply facts raise Article 43 exposure. Where the provider instead directs a genuine service, the operating evidence should show how it does so.

Is this lawful temporary worker supply?

Under Ley 14/1994, an ETT that supplies a worker needs prior administrative authorisation, and its assignment must fit circumstances in which the user company could lawfully make a temporary or training contract. The duration follows that matching employment route, so Spain has no single EOR-wide maximum term. For example, fixed-term employment for unexpected production circumstances is generally limited to six months, although a sector collective agreement may extend that maximum to one year; that rule does not convert every assignment into that route.

The 2024 CJEU decision has prompted competing Spanish-law readings. In a February 2025 opinion, Ana Pamies Massó argues that it could open a route for EOR companies as an alternative to traditional ETTs, while leaving later court outcomes unresolved. Federico Durán López reads the ruling more narrowly: where the facts amount to worker supply, Article 43 still requires an authorised ETT. These are professional interpretations, not a Spanish licence exemption or a change to the current statutory test and assignment-ground requirement.

Which licence should you verify in Spain's ETT register?

Where a supplier will temporarily provide workers to a client, check its ETT authorisation. An ETT needs prior administrative authorisation; the authorisation has national effect and no set duration. That authorisation addresses ETT activity, while the proposed assignment must still fit a permitted temporary or training route.

How to check the proposed supplier

Use the Ministry of Labour's public ETT search to look up the supplier by its authorisation number, NIF or legal company name. Compare the result with the legal entity named in the proposed documents, then confirm the labour authority shown in the record. Ask for the written assignment document as well as the specific temporary or training ground it relies on; a registry result cannot establish that ground for the proposed role.

What if the provider is an ordinary service company?

For an ordinary service company, review its stable organisation and means, employer functions, and direction of the service. Compare those facts with the proposed documents to see whether it supplies personnel to the client.

Who signs and controls the Spain hire?

The service agreement and employment contract identify the formal parties; an ETT assignment adds another document. The table also asks who gives the worker instructions and who performs employer functions.

Party	Signs / owes	Directs / checks
Client	Signs the service agreement with the supplier; if the arrangement is ETT supply, review the written assignment document and its stated ground.	Identify the client-side manager, instructions, work methods and performance supervision.
Legal employer or ETT	Signs the employment contract with the worker; an ETT route also requires the relevant written assignment document with the user company.	Show which employer functions it performs and whether it has the organisation and means for that role.
Employee	Signs the employment contract with the claimed legal employer.	Confirm who actually assigns and supervises the work, rather than inferring control from the contract title.

And the fundamental factual element is determining where direction and control of the work activity lie.

— Federico Durán López, of counsel, Labour Department, Garrigues (translated from Spanish)

Durán López also distinguishes a provider-directed service from personnel working under the user’s direction. In his International Bar Association article, Ángel Olmedo Jiménez identifies a possible Article 43 risk where the client manages the worker and the provider performs only formal hiring or payroll tasks. These are practitioner interpretations; the statutory test and actual assignment still govern.

Spain EOR hiring steps before the first working day

A Spain hire reaches its first working day only after the lawful route, employment terms, registrations and any required work authorisation are in place. These are dependencies rather than a provider turnaround promise: some preparation can proceed in parallel, while the worker's General Regime alta must precede the start of employment.

Step	Who acts	Timing / dependency
Confirm the employment route	Client and proposed legal employer or ETT	Verify the lawful arrangement and, for temporary supply, the ETT authorisation and assignment ground before treating the hire as an ETT placement.
Set the employment terms	Legal employer with client input	Identify the applicable convenio and contribution group, then set annual gross pay, the cash-payment schedule and any written probation term before signing.
Sign the documents	Client, legal employer or ETT, and employee	Complete the employment contract and, where relevant, the written ETT assignment document after the route and terms are known.
Prepare employer, tax and Social Security registration	Legal employer or foreign employer	Modelo 036 is due before activity or a withholding obligation arises. TA.6 registers the principal contribution account, while TA.7 accounts depend on the provinces and worker groups involved.
Check the work-authorisation branch	Spanish employer and non-EU/EEA/Swiss candidate applying from abroad	The employer files the initial employee-work authorisation for the relevant route; the administration's decision period is three months from receipt by the competent body.
Register the worker	Legal employer	File the General Regime alta before work begins; it may be filed up to 60 calendar days before the start date.

Modelo 036, employer registration and any required TA.7 accounts need not follow one fixed sequence, but the worker’s alta must precede the first day. For an applicant abroad who needs initial authorisation, the three-month administrative decision period is only one dependency; the employer must also meet the registration, tax, contribution and resource conditions.

What does a Spain EOR hire cost beyond salary?

Budget from annual gross pay, then add the statutory employer components that apply to the actual employment and the provider's separately quoted services. For an ordinary indefinite General Regime hire, the fixed employer components total 30.65% before any occupational accident premium and any above-cap solidarity levy; that is a starting point for a modelled case, not a universal multiplier.

Component	Budget treatment	Source / assumption
Annual gross salary	Start with the annual amount agreed for the role; it already includes any extra-pay entitlement.	The applicable convenio can set pay minima and the payment schedule.
Fixed employer components	30.65% for common contingencies, unemployment on an indefinite contract, FOGASA, vocational training and MEI.	BOE 2026 contribution order; ordinary indefinite General Regime model.
Occupational accident and disease premium	Add the tariff for the applicable activity or occupation.	BOE 2026 premium tariff: a qualifying exclusive-office occupation is 1.50%, employer-paid; other roles need their own tariff.
Solidarity levy above the cap	Add marginal employer tranches once monthly remuneration exceeds the ordinary contribution cap.	BOE 2026 contribution order: cap and marginal tranches apply below.
Provider charge and optional benefits	Obtain these as separate quoted lines.	Provider quote required.
Ending cost	Scope separately against the employment facts and applicable agreement.	Ground, agreement and facts determine the amount.

The calculations below assume a full-year, ordinary salaried General Regime, indefinite role with work that qualifies for the exclusive-office tariff. They exclude statutory directors and owners, bonuses, incentives, overtime, provider charges and discretionary benefits. They use 12 equal contribution bases. The relevant contribution group and convenio can change a real quote: for example, the 2026 common-contingencies floor for group 1 is €1,989.30 per month, while groups have different floors.

Do 14 payments raise annual gross?

No. The 2026 full-time SMI floor is €17,094 a year, presented as €1,221 a month on a 14-payment basis. Where the applicable collective agreement permits proration, the same annual amount is €1,424.50 over 12 cash payments; it is not a separate monthly minimum.

Extra payments also do not create a thirteenth contribution base. For a monthly-paid worker, the monthly contribution base includes the proportional share of estimated extraordinary payments, so the annual gross figures in the scenarios already include those payments and are spread across 12 contribution months.

Scenario	Annual gross	Employer contributions	Total employer cost	Basis
National average salary	€28,410.78	€9,134.28	€37,545.06	INE EACL 2025: nationwide General Regime contribution accounts in CNAE B–S plus maritime transport in the Sea Regime.
Technicians and professionals	€40,554.53	€13,038.24	€53,592.77	INE EAES 2024 PDF: broad occupational average, not a software-engineer benchmark.
Salaried managers	€63,865.45	€19,705.92	€83,571.37	INE EAES 2024 release: broad occupational average; the model excludes owner-directors and statutory directors.
Illustrative annual offer	€100,000.00	€20,093.64	€120,093.64	Hypothetical offer, not an observed salary statistic.

Annual totals retain annual gross precision, so multiplying a rounded displayed monthly figure may differ by cents. The first two salary scenarios remain below the ordinary cap and show employer contributions of 32.15% because they include the qualifying 1.50% office premium. The manager and hypothetical-offer rows cross the cap, so their effective percentages are lower even after solidarity contributions are added.

Why does the cost percentage fall above the cap?

The ordinary 2026 General Regime contribution cap is €5,101.20 a month. Above it, the ordinary contribution components in this model stop rising with the full salary, while the solidarity levy applies only to the marginal slices above the cap: 0.96% from €5,101.21 to €5,611.32, 1.04% from €5,611.33 to €7,651.80, and 1.22% above €7,651.80, all on the employer side in these rates.

That is why the €63,865.45 manager average has a 30.86% effective employer-contribution rate and the hypothetical €100,000 offer has a 20.09% rate. The latter passes through all three solidarity bands, but the capped ordinary components still form a smaller share of gross pay. The calculation does not establish a single percentage for roles with another accident tariff, contract type, contribution group or employment status.

What should an EOR quote separate?

Ask for annual gross pay, statutory employer contributions, the applicable accident tariff, solidarity treatment, the provider's own service charge, optional benefits and any case-specific exit assumption as separate lines. Also ask which convenio, contribution group, cash-payment schedule and employment model the quote uses. That makes it possible to compare a statutory employment budget with a provider's contractual charge without adding the annual salary or extra payments twice.

Where the Spain EOR route runs out

The assignment ground, tax facts, rights chain and exit terms each need a separate check. Their answers depend on the role and operating arrangement, so an EOR label cannot set one duration or termination cost.

Does the role need to be temporary?

Where an authorised ETT supplies a worker, the assignment needs a qualifying temporary or training ground and its duration follows that ground. For unexpected production circumstances, fixed-term employment is generally capped at six months; a sector collective agreement may extend the maximum to one year. This is one route-specific rule, not an EOR-wide maximum term or a way to make a permanent need temporary.

Who pays if Article 43 is breached?

If worker supply is prohibited, the supplier and user company are jointly liable for employment and Social Security obligations. The worker may choose permanent employment with either company. Prohibited supply is a very serious labour infringement, with general fine grades from €7,501 to €225,018; the outcome depends on the facts and the applicable grade.

What about permanent establishment, IP and non-compete?

An employment arrangement does not settle permanent-establishment analysis. Under Spanish domestic law, a nonresident may have a permanent establishment through a continuous or habitual place of business in Spain, or through a dependent agent who habitually concludes contracts; an applicable treaty can change the result. Review the role, authority and operating facts rather than assuming the legal employer's identity settles the issue.

For software created by an employee within assigned duties or following the employer's instructions, exploitation rights belong to the employer unless the parties agree otherwise. Inventions resulting from research that is an explicit or implicit object of an employee's or service provider's contract belong to the employer. If the client needs rights from work created under the legal employer's contract, the agreements need to provide for that rights chain.

A post-employment non-compete needs an effective industrial or commercial interest and adequate compensation. Its maximum duration is two years for technicians and six months for other workers, so the role and the actual clause both matter.

What does ending the hire cost?

An objective dismissal requires written reasons, 15 days' notice and 20 days' pay per year of service, capped at 12 monthly payments. A disciplinary dismissal requires a serious culpable breach and written notice of the facts and effective date; the statute sets no fixed advance-notice period, while a collective agreement may add formal requirements. If a dismissal is held unfair, the employer generally chooses reinstatement or 33 days' salary per year of service, capped at 24 monthly payments.

Protected birth and parental-leave situations can make a dismissal void and require reinstatement. Employee resignation notice follows the applicable collective agreement or local custom, not one national period. The Spain hiring guide has the wider leave and termination tables; the exit budget for a particular hire still depends on the ground, agreement and facts.

When you do not need an EOR in Spain

A foreign company without a Spanish work centre may employ a worker directly without incorporating a Spanish subsidiary. It must register as an employer with the required corporate documents and a legal representative domiciled in Spain, then carry its own employer, tax and Social Security responsibilities.

Before activity or a withholding obligation arises, the company uses Modelo 036 to enter the taxpayer, employer and withholder census. It registers its principal Código de Cuenta de Cotización through TA.6 and uses TA.7 where it operates in another province or needs an account for a particular worker group. The General Regime alta for the employee must be filed before work begins and may be filed up to 60 calendar days before the start date.

This route can be a practical choice for an ongoing directly supervised role when the company is ready to carry those obligations itself. Registration does not settle permanent-establishment or treaty questions: those depend on the company's place of business, contracting authority and other operating facts. Use the hiring guide’s detailed registration table alongside the employment model and tax analysis for the proposed hire.

How to choose an alternative for a permanent Spain role

For an ongoing role directed by the client, compare direct foreign-employer registration with a Spanish entity. An ETT assignment needs a qualifying temporary or training ground, while independent services require genuine autonomy.

Route	Fits when	Key check
Direct foreign-employer registration	The foreign company will employ and directly supervise an ongoing Spain-based worker.	Complete the employer, tax and worker-registration requirements before work starts; assess PE separately.
Spanish entity	The company needs its own local employing structure for its planned operations.	Set the entity's employment, tax and Social Security responsibilities for the particular role.
Authorised ETT	The user company's need fits a lawful temporary or training route.	Verify the ETT authorisation, written assignment and ground; the duration follows that matching employment route.
Genuinely autonomous services	The person carries on their own-account activity outside the client's organisation and direction.	Test the actual service, direction and organisation rather than relying on a contractor label or registration.

A permanent, client-supervised job does not become temporary or independent through its contract title. Use the operating plan to decide whether direct registration or a local entity fits; for genuinely autonomous work, the contractors guide covers classification in more detail. Before the first day, document the registration, lawful assignment ground or autonomous service that supports the chosen route.

How to choose a Spain EOR provider before signing

Request the legal employer’s identity, the person who will direct the work, any ETT assignment ground, and an itemised quote. The documents and answers below should also show how the parties plan to handle an exit.

• Who is the legal employer? Request the exact legal entity name and NIF that will sign the employment contract. Where the arrangement supplies labour, request the ETT authorisation details and the written assignment document, including the temporary or training ground and proposed duration.
• Who will direct the work? Ask for a written map of who assigns daily tasks, sets methods, supervises performance and exercises employer functions. Compare it with the service agreement, employment contract and the proposed operating model.
• Which employment terms drive the quote? Ask for the applicable convenio, contribution group, annual gross salary, cash-payment schedule, probation term and the treatment of extra payments. A 12-payment presentation should identify whether the agreement permits proration.
• What is included in the statutory employment budget? Request separate lines for employer contributions, the applicable accident tariff, the ordinary contribution cap, any solidarity levy, and the provider's own service charge and optional benefits. Ask what contract type and occupational assumptions the calculation uses.
• Who owns the recurring administration? Identify the party responsible for employer and worker registration, Social Security, IRPF withholding, working-time and leave records, and any work-authorisation application. The general employment rules in the hiring guide frame those allocations.
• How are PE, IP and restrictive covenants handled? Request the role's permanent-establishment analysis, the contractual route for employee-created software and inventions to reach the client, and the wording, compensation and duration of any post-employment non-compete.
• What happens on exit or a challenge to the arrangement? Ask for the proposed dismissal, transfer and records handover process, together with the contract terms that address the parties' allocation of obligations if the arrangement is challenged. Do not treat a provider statement as a replacement for the statutory test or the contract itself.

Keep those answers with the signed documents so the proposed operating arrangement can be checked before work starts.

Spain EOR hiring questions

Is an employer of record legal in Spain?

The answer depends on the actual arrangement. If it amounts to temporary worker supply, it must follow the authorised ETT route and a permitted temporary or training ground. A provider name or employment contract alone does not decide whether Article 43 is satisfied.

Does an employer of record in Spain need an ETT licence?

An ETT needs prior administrative authorisation when it undertakes temporary worker supply. Whether that route is engaged depends on the actual direction, employer functions, organisation and means in the arrangement. Check the proposed supplier and the assignment ground rather than assuming the EOR label answers either question.

How much does an EOR in Spain cost per month?

A provider’s service charge depends on its quote. In the stated 2026 ordinary General Regime, indefinite, qualifying exclusive-office model, the 2025 national annual-salary average of €28,410.78 produces €761.19 in monthly employer contributions and a total monthly employer cost of €3,128.76. The result excludes provider charges and benefits, and another tariff, contribution group or contract type can change it.

How long may an ETT assignment last?

Its duration follows the temporary or training route that supports the assignment; Spain does not set one EOR-wide maximum. For unexpected production circumstances, the general maximum is six months, which a sector collective agreement may extend to one year. The proposed ground and applicable agreement need to be checked for the particular assignment.

Can a foreign company hire directly without a Spanish subsidiary?

Yes, a foreign company without a Spanish work centre may register as an employer using the required corporate documents and a Spanish-domiciled legal representative. It still needs the relevant employer and tax registration, and the worker's General Regime alta must be filed before work begins. Direct registration does not itself resolve permanent-establishment or treaty questions.

Can an EOR sponsor a non-EU employee?

For the ordinary overseas route, the Spanish employer files the initial residence and employee-work authorisation for a qualifying foreign national. The administration has a three-month decision period from receipt by the competent body, and the employer must meet the registration, tax, contribution and resource conditions. That period is not a provider onboarding commitment or a promised start date.

Does an EOR prevent permanent establishment in Spain?

No general conclusion follows from using an EOR. Under Spanish domestic law, a continuous or habitual place of business, or a dependent agent who habitually concludes contracts, can create a permanent establishment; treaty terms may change the result. Assess the role, authority and operating facts.

Can I use a contractor instead?

Only where the service is genuinely autonomous and outside the client's organisation and direction. A person who performs paid work within the client's organisation and direction may be treated as an employee, and a contractor label does not change the underlying facts. The route should follow the service model rather than the preferred contract title.

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