Allen Recruitment in Spain

Yes. An Irish company can employ someone who is based in Spain, but it must use an employment structure that complies with applicable Spanish employment, Social Security, payroll and tax requirements. Depending on the circumstances, the company may establish a Spanish employing entity, use an appropriate local employment structure or engage an Employer of Record (EOR).

Yes. A UK company can employ a person working from Spain, but Brexit means the employee’s immigration, employment, Social Security and tax position must be assessed under the applicable Spanish and EU rules. Simply paying a Spanish resident from a UK payroll does not automatically remove the employer’s Spanish obligations.

Potentially a US company can employ someone in Spain with out a Spanish entity, but the company must establish a legally compliant way to employ the individual in Spain.Common options include establishing a Spanish entity or using an Employer of Record. The appropriate structure depends on factors such as the number of employees, duration of operations, location, tax position and the nature of the work.

There are various options for hiring an employee in Spain, including temporary and permanent contracts. Allen Recruitment has created an in-depth guide to recruiting in Spain to help you navigate and understand the different employer requirements and laws.

Once you have found a remote worker that you want to hire in Spain, you can either hire them directly or via their company as a contractor. You must make sure you comply with all Spanish requirements as an employer, please refer to our guide to hiring in Spain for more information.

Yes. Madrid, Barcelona, Malaga and Valencia continue to attract multilingual professionals supporting European and global business operations

Yes. Allen Recruitment supports international organisations recruiting in Spain, including permanent recruitment and other employment solutions. Our Spain operation combines local market knowledge with international recruitment capability, allowing employers to access Spanish and international talent while receiving support throughout the recruitment and employment process.

Before recruiting its first Spanish employee, an international company should establish:

• The employing entity or employment structure.
• The appropriate employment contract.
• The applicable collective bargaining agreement.
• Salary and benefits.
• Employer Social Security costs.
• Payroll and employee-registration requirements.
• Remote-working arrangements.
• Immigration requirements, where applicable.
• Working time and holiday arrangements.
• Data-protection requirements.
• Potential tax and permanent-establishment implications.
• Termination and severance exposure

Getting these points right before recruitment begins can prevent significant delays and unexpected costs later.

An autónomo is a self-employed person who operates independently and is generally responsible for their own tax and Social Security obligations. Businesses can engage autónomos for genuine independent services, but the contractual arrangement must reflect the actual working relationship.

Yes, if the individual is genuinely self-employed. Spanish law distinguishes between genuine self-employment and an employment relationship. Calling an individual an autónomo does not by itself determine their legal status. Where the company controls the individual’s work in a way characteristic of employment, there may be employment-status and Social Security risks.

An indefinite contract (contrato indefinido) has no predetermined end date. It is now the normal form of employment contract in Spain and provides employees with the employment protections applicable to indefinite employees under Spanish law and the relevant collective agreement.

Yes, but Spain substantially restricted temporary employment following the labour-market reforms introduced in 2021 and 2022.  Temporary employment must generally be supported by a legally recognised temporary reason. Employers should not use fixed-term contracts simply to test an employee or because they are uncertain about future headcount.