Employer of Record in Spain

Hire, pay, and manage your Spanish team without setting up a local entity, while Komp’s AI Agent Swarms monitor compliance and your people stay in control.

Custom pricing based on your workforce model.

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Your Details

Currency

Euro (EUR)

Capital

Madrid

Official Language

Spanish, with co-official languages in several regions

Payroll Cycle

Monthly, across 14 statutory payments or prorated over 12

Recognized for Compliance, Visibility, and Global Hiring Efficiency

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The Komp Advantage

Why Choose Komp as Your Employer of Record in Spain

Spain is the European Union’s fourth-largest economy and one of its deepest talent markets, with strong technology, engineering, and shared-services capability, excellent connectivity to Latin America, and salary levels below Western European averages. It is also a market where the statutory baseline is only half the picture. Almost every Spanish employee is covered by a sector collective agreement that sets pay scales, working hours, leave, and notice above the legal minimum, and getting the wrong one is the most common mistake foreign employers make. Komp gives you a compliant way in. We act as the legal employer for your Spanish team, while our AI-powered platform runs payroll, classification, and compliance monitoring across the full employee lifecycle. Every AI recommendation is reviewed before action is taken, so you move fast without losing control.

Fast, Compliant Market Entry

Onboard talent anywhere in Spain without registering an S.L. Komp identifies the applicable convenio colectivo, issues contracts that meet it and the Workers’ Statute, registers the employee with Social Security before the start date, and completes onboarding before day one.

Spanish Payroll on Autopilot

Komp PayOps calculates EUR payroll every cycle, withholds IRPF at the correct rate for each employee, applies employee and employer Social Security within the contribution ceiling, and schedules the two extra payments so July and December never surprise Finance.

Compliance That Never Sleeps

Our AI Agent Swarms track Spanish legislative change, from the annual SMI revision and contribution bases to collective agreement renewals and MEI increases, and flag the contract, policy, or payroll updates you need before they become risks.

Time Recording Built In

Spain requires a daily record of every employee’s working hours, and the labor inspectorate actively enforces it. Komp TimeOps captures that record as part of normal workforce operations, so the obligation is met without adding a separate system.

How Komp’s Employer of Record Works in Spain

Entering Spain with Komp is simple. You choose the talent and direct the work; Komp becomes the legal employer and runs everything behind the role, from contracts and payroll to Social Security, benefits, and compliance, through one connected platform.
  • Enter the market immediately: Start hiring in Spain without incorporating an S.L., registering with the commercial registry, opening a Spanish bank account, or obtaining a Social Security contribution account code as an employer.
  • We employ, you lead: Komp holds the legal employment relationship. You manage day-to-day work, goals, and performance.
  • Scale with confidence: Add or reduce Spanish headcount as plans change, with compliant onboarding and offboarding built in.
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Employer of Record

Employment Compliance in Spain

Spanish employment is governed by the Workers’ Statute, by the collective agreement that applies to your sector and region, and in larger organizations by company-level agreements. Social Security contributions and payroll filings run monthly, daily working time must be recorded, and dismissal follows a prescribed route with defined severance. Komp’s Global Compliance Engine maps every Spanish obligation to your workforce and keeps it current, from the first contract to the final payslip.

Audit Ready

Compliance Secured

100% DOCUMENTATION VERIFIED

What Global Teams Say About KOMP

“

Before Komp, we had no unified view of our contractors and EOR workforce. Today HR and Finance operate from the same real-time data.

HR

HR Director

Series B Tech Company
“

Komp didn't just simplify global hiring. They gave us a command center for scaling internationally. Instead of waiting months to establish an entity, we onboarded talent compliantly in just days.

COO

Chief Operating Officer

Enterprise Technology Company
“

Komp gave us the compliance infrastructure to operate confidently across regulated markets, without increasing operational overhead.

COO

Chief Operating Officer

TechGlobal Inc.
“

As our international footprint expanded, maintaining consistency across workforce processes became challenging. Komp helped us establish a scalable framework that supports operational efficiency and compliance confidence.

VP

VP, People & Operations

Global Growth Organization
“

We finally have systems of scale that move as fast as our product teams. KOMP didn’t just reduce admin burden, they gave us infrastructure we can actually build on.

VP

VP of People Operations

EnterpriseSoft
“

Global hiring evolved from a cross-functional burden into a coordinated operating model. For the first time, HR, Finance, and Legal were looking at the same numbers in the same place.

GW

Director, Global Workforce Operations

Enterprise Technology Company

What Is an Employer of Record in Spain?

An Employer of Record (EOR) in Spain is a locally registered organization that becomes the legal employer of your Spanish workforce. It lets companies based anywhere hire people in Madrid, Barcelona, Valencia, or anywhere else in the country without forming an S.L. or branch. The EOR takes on the statutory employer duties, including contracts under the applicable collective agreement, EUR payroll across all fourteen statutory payments, IRPF withholding, Social Security contributions, daily time records, statutory leave, and lawful termination. You keep full control of the employee’s role, priorities, and performance.

This Model Works Especially Well When:

  • You want to hire Spanish technology, engineering, or commercial talent before an entity makes sense
  • You are entering the EU market and want a base with strong talent depth and links to Latin America
  • You need to convert Spanish contractors or autónomo arrangements into compliant employment
  • You are building a distributed European team and want one employment model across countries
  • You want to reduce exposure to collective agreement, severance, and time-recording risk
Komp delivers this as part of a single workforce platform, so your Spanish employees sit alongside contractors, EOR workers, and direct employees in other countries, governed by the same data, workflows, and controls.

How Komp’s Employer of Record Works in Spain

Komp becomes the legal employer for your Spanish team members and takes on their statutory liabilities, while you run the work. Here is what that looks like in practice.

Market entry without entity setup

Skip incorporation, notarized deeds, share capital, commercial registry filings, the Spanish bank account, and obtaining an employer contribution account code from Social Security. Komp’s existing Spanish infrastructure lets you make offers as soon as you find the right person.

Hire-to-retire lifecycle management

Komp Activate runs onboarding, contracts, and benefits; Komp PayOps runs EUR payroll with monthly filings and correctly timed extra payments; Komp TimeOps captures the mandatory daily time record; and compliant offboarding closes the loop, all in one flow.

One view across every country

Komp Workforce gives HR, Finance, and Legal a single source of truth for Spanish and global headcount, covering payroll status, fully loaded employer costs, extra-payment accruals, leave balances, and compliance alerts, with audit trails built in.

What Komp Handles Under EOR in Spain

Komp manages every part of the Spanish employment relationship so your team can focus on the work, not the paperwork.

Compliant employment contracts

We identify the collective agreement that governs the role by sector and region, then issue a contract that meets both it and the Workers’ Statute, setting the professional category and pay group, working hours, probation, notice, leave, and any confidentiality or non-compete terms.

Digital onboarding and registrations

We collect the NIE or DNI and Social Security number, register the employee with Social Security before the start date, register the contract with the public employment service, arrange occupational health screening, and complete setup before day one.

Payroll processing and salary disbursement

Komp PayOps calculates gross-to-net pay in EUR, applies the correct IRPF withholding rate for each employee’s circumstances, handles the two extra payments or their prorating, and pays employees through our owned payment infrastructure with compliant payslips.

Social Security contributions

We calculate and remit employer contributions of roughly 30% to 32% of gross pay and the employee share of around 6.5%, apply the Intergenerational Equity Mechanism, respect the monthly maximum contribution base, and file on the statutory schedule.

Daily working time records

Spain requires every employer to keep a daily record of each employee’s start and finish times, retained for four years and available to the inspectorate on request. Komp TimeOps captures and stores this as standard rather than as an add-on.

Leave, extra payments, and benefits

We administer the 30 calendar days of paid annual leave, the 14 public holidays across national, regional, and local calendars, the July and December extra payments, and any supplementary benefits such as private health cover or meal vouchers.

HR support and employee relations

Employees get support in Spanish and English. We maintain the documentation the inspectorate expects, manage absence and family leave, and keep records in line with the GDPR and Spanish data protection law.

Offboarding and final settlement

We manage exits through the correct route, whether resignation, mutual agreement, objective dismissal, or disciplinary dismissal, calculate the severance that applies, and issue the finiquito covering outstanding salary, unused holiday, and prorated extra payments.

Employer of Record vs Entity Setup in Spanish

Criteria Employer of Record (Komp) Own Spanish Entity
Best suited for Market entry, small to mid-sized teams, fast expansion, remote or hybrid roles Large, permanent Spanish operations such as a regional headquarters or delivery center
Time to hire As soon as the candidate accepts, no incorporation needed Incorporation, notarization, banking, and Social Security employer registration must be completed first
Upfront cost No setup cost; predictable per-employee fee Notary, registry, legal, accounting, and payroll setup costs
Compliance ownership Managed by Komp with AI-assisted monitoring and human review Your responsibility, including collective agreement application, time recording, and dismissal procedure
Flexibility Scale up or down with minimal commitment Closing a Spanish entity takes time, and workforce reductions follow a formal process
Legal presence Not required, Komp is the legal employer Full Spanish company with administrators, filings, and annual accounts
Workforce visibility Spanish data unified with your global workforce in one platform Often a separate local system and vendor

Employer of Record Cost in Spain

EOR pricing in Spain varies by provider, service scope, and team size. The real comparison is not the fee alone, it is the fee against the time, overhead, and risk of running your own Spanish entity in a market where employer contributions are among the highest in Europe and severance is defined by statute. Komp pricing is built around your actual workforce model. You pay a clear, predictable fee that covers employment administration, EUR payroll and monthly filings, time recording, benefits administration, compliance monitoring, and support. There are no hidden charges, no FX markups on payroll, and no need to coordinate separate payroll, HR, and legal vendors.

What Shapes Your Price

  • Number and type of workers: employees, contractors, and EOR hires across your footprint
  • Countries of operation: Spain only or multi-country
  • Compensation design: base salary across fourteen payments, variable pay, commissions, or equity
  • Benefits scope: private health cover, meal vouchers, transport allowances, and pension arrangements
  • Integrations and reporting: HRIS, ERP, and finance system connections

Why EOR Delivers Strong ROI

  • Faster revenue: your Spanish hire starts contributing sooner
  • Lower overhead: no incorporation, local accounting, payroll software, or in-country HR staff
  • Lower risk: fewer inspectorate findings, severance disputes, and misclassification exposures
  • Less admin: one platform, one invoice, one partner for Spanish employment

Who Should Use an EOR in Spain?

Startups and scale-ups going international

Place your first Spanish hires without tying up capital in a subsidiary and validate the market before you commit.

Technology and SaaS companies

Hire engineering, product, and EMEA go-to-market talent in Madrid, Barcelona, and Valencia, where technical depth meets salary levels below Western European averages.

Shared services and customer operations

Build multilingual support, finance, and back-office teams using Spain’s deep pool of Spanish, English, French, and Portuguese speakers.

Companies serving Latin American markets

Use Spain as a European base with language, cultural, and time-zone alignment to Latin America for regional commercial and delivery roles.

Companies formalising autónomo arrangements

Convert long-standing freelance engagements onto compliant employment where the working relationship warrants it, ahead of inspectorate attention.

HR and Finance leaders

Get a consistent employee experience, predictable costs, consolidated invoicing, owned payment rails with zero FX markup, and audit-ready records for every Spanish hire.

Why Komp Is Different from Generic EOR Providers

Many providers can put a Spanish employee on payroll. Komp is built as workforce infrastructure, combining AI intelligence, owned payment rails, and human governance so you can grow in Spain with confidence.

AI Agent Swarms with human control

Autonomous agents continuously check payroll, classification, contracts, and regulatory change, including collective agreement renewals. Recommendations are surfaced for review before anything is executed: autonomous intelligence, human control.

Worker classification intelligence

Our jurisdiction-based rules engine analyzes 50+ risk factors to help you decide whether a Spanish worker should be engaged as an autónomo or an employee, which matters because reclassification brings back contributions, penalties, and potential severance exposure.

Owned payroll infrastructure

Komp PayOps runs on owned infrastructure with 135+ currencies, transparent flat fees, and no FX markups, so paying EUR salaries from a USD, GBP, or INR budget costs exactly what you expect.

One platform, four modules

Komp Activate, Komp Workforce, Komp TimeOps, and Komp PayOps connect hiring, workforce records, time, and pay across Spain and 150+ countries. In Spain, TimeOps also satisfies the statutory time-recording duty.

Enterprise-grade security

AES-256 encryption, SOC 2 Type II, ISO 27001, GDPR compliance, role-based access control, and AWS hosting with multi-region redundancy protect your Spanish employee data.

Real-time visibility and reporting

Live dashboards for payroll status, fully loaded employment costs including extra-payment accruals and severance exposure, leave balances, and compliance alerts, with exportable reports for Finance, HR, and audit.

Why Use an Employer of Record in Spain?

Spain combines a large domestic market, a deep and well-educated workforce, strong digital infrastructure, and an attractive quality of life that helps with senior recruitment. An EOR makes entering it faster, safer, and lighter on overhead.

Hire without setup delays

Forming a Spanish company means notarized deeds, capital, registry filings, banking, and Social Security registration before anyone can be paid. With Komp, you can make offers and onboard without waiting for any of it.

Stay compliant from day one

The Workers’ Statute, your sector collective agreement, monthly filings, and the daily time-recording duty all apply from the first hire, and the inspectorate enforces them actively. Komp keeps contracts, calculations, and records current.

Understand the true cost of a hire

Employer contributions run roughly 30% to 32% above gross pay, and statutory severance is a defined liability from the first year of service. Komp makes the fully loaded number, including that future exposure, visible before you make an offer.

Deliver a better employee experience

The right collective agreement category, extra payments made on time, correct payslips, and support in Spanish all signal a serious employer, and shape whether strong candidates accept and stay.

Manage Spain like every other market

See Spanish headcount, costs, and compliance in the same platform as the rest of your global workforce. No separate vendor, no data silos.

Spain Employment Compliance: What Global Employers Must Manage

Spanish employers answer to Social Security for contributions, to the tax agency for IRPF withholding, and to the Labor and Social Security Inspectorate for working conditions, contracts, and time records. These are the areas that matter most, and how Komp covers them.

Collective agreements

Almost every Spanish employee is covered by a sector and regional collective agreement that sets minimum pay by professional category, working hours, leave, notice, and often benefits above the statutory floor. Identifying and applying the correct convenio colectivo is the single most important compliance step when hiring in Spain.

Minimum wage and the fourteen-payment structure

The statutory minimum wage is €1,221 gross per month across fourteen payments in 2026, which is €17,094 a year, following a 3.1% increase. Employers may prorate the two extra payments across twelve months instead. Where the collective agreement sets a higher minimum for the category, that figure applies.

Social Security contributions

Employers contribute roughly 30% to 32% of gross pay, covering common contingencies, unemployment, wage guarantee fund, vocational training, and the accident rate for the activity. Employees contribute around 6.5%. Both are subject to a monthly maximum contribution base, which rose to €5,101.20 in 2026.

Intergenerational Equity Mechanism

The MEI surcharge continues its scheduled increase, reaching 0.90% in 2026, split 0.75% employer and 0.15% employee. It applies on top of ordinary contributions and rises again in later years, so cost models need refreshing annually.

Income tax withholding

IRPF is withheld at a rate calculated for each employee’s income, family circumstances, and region, rather than a flat scale. Regions set part of the rate, so two employees on identical salaries in different regions can have different net pay.

Daily working time records

Every employer must keep a daily record of each employee’s working hours, including start and finish times, retain it for four years, and make it available to the inspectorate. Failure to keep proper records is a standalone infringement, independent of any underpayment.

Leave and public holidays

Employees are entitled to 30 calendar days of paid annual leave, which is roughly 22 working days, plus 14 public holidays drawn from national, regional, and local calendars. Collective agreements frequently improve on this.

Probation and contract types

Probation is typically up to six months for qualified technicians and two months for other employees, with a longer period allowed in smaller companies, subject to the collective agreement. Indefinite contracts are the default, and temporary contracts are permitted only on defined grounds.

Dismissal and severance

Objective dismissal requires 15 days’ notice and severance of 20 days’ salary per year of service, capped at 12 months. Unfair dismissal carries 33 days per year of service for time accrued since February 2012, capped at 24 months. Disciplinary dismissal carries no severance but only if the misconduct is properly documented, and a poorly evidenced disciplinary dismissal is routinely reclassified as unfair.

Immigration and data protection

EU and EEA nationals work freely. Third-country nationals need authorization before starting, with routes including the highly qualified professional permit under the Startups Law. Employee data is processed under the GDPR and Spanish implementing law, which also gives employees digital disconnection rights.

In Spain, the law is the floor, and the collective agreement is the contract. Around nine in ten employees are covered by a sector agreement that sets minimum pay by professional category, annual hours, leave, notice periods, and often supplementary benefits. Applying the wrong agreement, or none, means underpaying against a binding scale and exposes the employer to back pay, inspectorate penalties, and reclassified dismissals. It is also not a one-time decision, because agreements are renegotiated and salary tables are updated. Komp identifies the applicable agreement for every role before an offer goes out, and our AI Agent Swarms track renewals and salary-table revisions as they are published.

Employer of Record Coverage Across Key Spanish Cities

Spanish talent is spread across several strong metropolitan areas, each with its own sector profile, salary expectations, and in some cases its own regional rules. Komp lets you hire compliantly in any of them, with the same payroll, contribution, and compliance workflows everywhere.

Employer of Record in Madrid

The capital and the center of Spanish corporate, financial, and technology activity, with the deepest pool of senior commercial, consulting, and engineering talent, the largest concentration of multinational headquarters, and the highest salary levels in the country.

Employer of Record in Barcelona

A leading European startup and technology hub with strong software, product, design, and life-sciences talent, an unusually international workforce, and its own Catalan regional framework.

Employer of Record in Valencia

A fast-growing technology and logistics center offering strong engineering and commercial talent at costs below Madrid and Barcelona, and an increasingly popular base for remote-first teams.

Employer of Record in Bilbao and the Basque Country

An industrial and advanced-manufacturing hub with strong engineering, energy, and machine-tool capability, operating under its own regional tax arrangements.

Employer of Record in Seville and Málaga

Southern Spain’s growing technology corridor, with Málaga attracting international technology investment and offering competitive costs and a strong quality-of-life draw for senior hires.

Whether your Spanish team works in-office, hybrid, or fully remote, Komp runs EUR payroll, IRPF withholding, Social Security contributions, time records, and statutory leave consistently across the country, applying the right regional and sector rules so adding a new location never adds new compliance work for you.

Employer of Record in Spain: FAQs

It is a locally registered company that legally employs workers in Spain on your behalf, taking responsibility for contracts, payroll, IRPF withholding, Social Security, time records, benefits, and compliance. You direct the employee’s work; the EOR carries the employer obligations, so you can hire without a Spanish entity.

No. With Komp as your Employer of Record, you can hire anywhere in Spain without incorporating an S.L., registering with the commercial registry, or obtaining your own Social Security employer contribution account code.

It is the collective agreement covering your sector and region, and it binds the employer. It sets minimum pay by professional category, annual working hours, leave, notice periods, and often extra benefits above the statutory minimum. Applying the wrong one means underpaying against a binding scale. Komp identifies and applies the correct agreement for each role.

Because Komp already has the legal and payroll infrastructure in place, onboarding can begin as soon as your candidate accepts. Timelines usually depend on the notice period with their current employer and, for non-EU nationals, on work authorization.

Employer Social Security contributions run roughly 30% to 32% of gross pay, subject to a monthly maximum contribution base of €5,101.20 in 2026. The MEI surcharge adds a further 0.75% on the employer side. Statutory severance also accrues from the first year of service. Komp shows the fully loaded figure per hire before you commit.

The statutory minimum wage is €1,221 gross per month across fourteen payments in 2026, which is €17,094 a year. Where the applicable collective agreement sets a higher minimum for the professional category, that figure applies instead.

Because employees are entitled to two extra payments a year, customarily in July and December, in addition to twelve monthly salaries. Employers may prorate these across twelve months instead, provided the annual total is unchanged and the collective agreement permits it.

Yes. Every employer must keep a daily record of each employee’s start and finish times, retain it for four years, and produce it for the labor inspectorate on request. Failure to keep proper records is an infringement. Komp TimeOps captures this as standard.

Employees are entitled to 30 calendar days of paid annual leave, which works out at roughly 22 working days, alongside 14 public holidays drawn from national, regional, and local calendars. Collective agreements often improve on this.

Objective dismissal requires 15 days’ notice and severance of 20 days’ salary per year of service, capped at 12 months. Unfair dismissal carries 33 days per year of service for time accrued since February 2012, capped at 24 months. Disciplinary dismissal carries no severance, but only where the misconduct is properly documented. Komp manages the route, the process, and the finiquito.

Yes. Where someone engaged as an autónomo is working in substance as an employee, Komp assesses the relationship, documents the basis for the change, and moves the person onto a compliant contract under the right collective agreement category.

Yes. EU and EEA nationals can work freely, and Komp supports the work authorization process for third-country nationals, including the highly qualified professional route introduced under the Startups Law.

Komp is SOC 2 Type II certified, ISO 27001 certified, and GDPR compliant, uses AES-256 encryption with role-based access control, and is hosted on AWS with multi-region redundancy, in line with Spanish data protection and digital disconnection requirements.

Build Your Spanish Team with Komp

Komp handles contracts, payroll, and compliance. You focus on building your team.
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