🇪🇸 Hire in Spain: cost, rules and best EOR options
Deep tech and multilingual talent in Madrid and Barcelona, and a favorable time zone for Europe and the US East Coast.
- Employer on-costs: 31–34% of gross salary (on a $60,000 salary, about $78,600–$80,400 total)
- EOR onboarding: Not verified from a retrieved provider source; own entity: Not verified from a retrieved source
- Probation: Estatuto de los Trabajadores art. 14: collective agreement may set it, otherwise maximum 6 months for qualified technicians and 2 months for other workers (3 months for non-technicians in firms with under 25 employees).
- Currency: Euro (EUR)
- Data confidence: medium, verified 2026-10-05
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What it costs to employ someone in Spain
Employer on-costs run roughly 31–34% on top of gross salary. Recomputed 5 Oct 2026. 2026 employer rates (Orden de cotizacion 2026, as summarised by Cuatrecasas/mutuas and PwC): common contingencies 23.60% + unemployment 5.50% (indefinite contracts) + FOGASA 0.20% + vocational training 0.60% + MEI 0.75% (total MEI 0.90%, 0.15% paid by the employee) = 30.65%, matching PwC. Accident and occupational disease (AT/EP) premium about 1.5% for office work under the new CNAE-2025 tariff -> 32.2%; low-risk activities near 0.9% -> 31.5%; higher-risk activities push towards 34%. Fixed-term contracts pay a higher unemployment rate (6.70%, general knowledge). Maximum monthly contribution base EUR 5,101.20 (confirmed by PwC and Cuatrecasas); a solidarity contribution (first tier 1.15%) applies on pay above the cap. Extra payments are within annual gross.
| Contribution | Rate | Notes |
|---|---|---|
| Common contingencies | 23.60% | Pension and sickness |
| Intergenerational Equity Mechanism (MEI) | 0.75% employer (0.90% total in 2026, 0.15% employee) | 2026 MEI total 0.90% of the common-contingency base, split 0.75% employer / 0.15% employee. |
| Unemployment, FOGASA, vocational training | Unemployment 5.50% (indefinite) + FOGASA 0.20% + training 0.60% = 6.30% | Component split confirmed in 2026 contribution-rate summaries; sums with 23.60% and 0.75% to PwC's 30.65%. |
| Occupational accidents and diseases | About 1.5% (office work) | Varies by activity |
Employee pays about 6.5% social security (4.70% common contingencies) deducted by the employer, plus IRPF income tax withholding.
Mandatory benefits
- Two extra payments per year (summer and Christmas) or 14 payments in total
- Employee social security coverage
- Maternity 19 weeks and paternity leave of up to 16 weeks (Remote), paid by Social Security
Employment rules at a glance
| Payroll | Monthly; 14 payments per year |
|---|---|
| Probation | Estatuto de los Trabajadores art. 14: collective agreement may set it, otherwise maximum 6 months for qualified technicians and 2 months for other workers (3 months for non-technicians in firms with under 25 employees). |
| Notice & severance | Improper dismissal: 33 days of salary per year of service, up to 24 monthly payments (ET art. 56, confirmed). Objective dismissal: 20 days per year up to 12 months with 15 days' notice (ET art. 53, general knowledge, not fetched). Notice for other reasons varies by collective agreement (Remote). |
| Working time | 40 hours per week standard; reduction to 37.5 hours has been proposed (status not verified). Registration of working time is mandatory. |
| Paid leave | Statutory minimum 30 calendar days (Estatuto de los Trabajadores art. 38; typically 22 working days; many agreements give 23) plus up to 14 public holidays (national, regional and local). |
| Minimum wage | EUR 1,221 per month in 14 payments (EUR 40.70/day; EUR 17,094/year) for 2026 under Real Decreto 126/2026, BOE 18 Feb 2026, retroactive to 1 January. |
Termination
Dismissal needs a cause and formal letter; judges often declare unfair dismissals. Collective agreements (convenios) govern many terms and must be checked.
Employee or contractor in Spain?
Falsos autonomos (false self-employment) are actively policed by labor inspection, with back contributions and fines (Remote notes risk; penalties not verified). Contractors should invoice multiple clients.
Compare contractor vs employee cost →
Hiring through an EOR in Spain
Direct hiring requires a Spanish entity with social security registration. EOR often used for speed. Remote notes payroll cut-off on the 10th, plus a 3-day right-to-work check for non-nationals; full timelines not verified.
Typical onboarding: EOR Not verified from a retrieved provider source; own entity Not verified from a retrieved source. UTC+1 winter, UTC+2 summer (Canary Islands one hour behind): 6 hours ahead of US Eastern.
Providers worth shortlisting
| Provider | Best for | EOR pricing | Coverage | |
|---|---|---|---|---|
| Deel | Companies that want one platform for contractors, EOR and a US PEO, with transparent per-seat list prices. | $599 per EOR employee per month (public list price, checked 2026-10-05) | 150+ countries (vendor claim, per Deel's own and third-party descriptions) | Visit Deel |
| Remote | Teams that want a published price for each product (EOR, global payroll, contractors, contractor of record, US PEO) and an affiliate program with 12-month revenue share. | $699 per employee/month (public list price, checked 2026-10-05) | 90+ countries for EOR (vendor pricing page claim) | Visit Remote |
| Rippling | Companies already running (or willing to adopt) a unified HR, IT and finance platform who want global hiring as an add-on module. | — | Visit Rippling | |
| Oyster | Distributed teams that want published EOR and contractor prices and a long-running affiliate program with tiered revenue share. | $699 per employee/month (public list price, checked 2026-10-05); annual discounts available; refundable deposit required | 120+ countries EOR; contractors in 180+ countries (vendor claim) | Visit Oyster |
| Papaya Global | Mid-size and larger companies that need multi-country payroll orchestration and workforce payments, and will go through a sales process. | 160+ countries (vendor claim as repeated on FlexOffers listing and third-party pages) | Visit Papaya Global | |
| Multiplier | Cost-conscious teams that want EOR priced below $500 per employee with an annual discount. | Third-party summary of Multiplier's pricing: EOR from $459/employee/month on annual contracts and $499 on monthly contracts (not confirmed; multiplier pricing page returned 403 to our fetch) | — | Visit Multiplier |
| Remofirst | Small teams that want the lowest published EOR starting price and a free contractor tier. | Starting at $199 per person/month (public list price, checked 2026-10-05); 'no hidden fees, setup fees, or minimum contract terms' per vendor page | 185+ countries for EOR (vendor claim) | Visit Remofirst |
| Pebl (formerly Velocity Global) | Companies that want an EOR with a tiered reseller/partner program and are comfortable with a recently rebranded vendor. | Third-party reports a flat $399 per employee/month (not confirmed on vendor page; hellopebl.com/pricing returned 404) | 185+ countries (third-party report) | Visit Pebl (formerly Velocity Global) |
Paying and covering your team in Spain
Related
FAQ
What is employer social security in Spain?
About 30.65% to 31.55% plus an accident rate of about 1.5%.
How many salary payments are there?
14: 12 months plus two extra payments.
Is there a social security base cap?
Yes. PwC lists EUR 5,101.20 per month; other sources show different figures, so confirm the current year.
How many holiday days?
At least 30 calendar days (about 22-23 working days) plus public holidays.