You can hire an employee in Spain without incorporating a Spanish company. One supported route is to register your foreign company as the employer, obtain the necessary Spanish identifiers and run Spanish employment and payroll obligations through that company. Spain’s Social Security authority expressly provides a registration process for foreign companies without a Spanish work centre.
The first decision is who will actually employ and direct the person. If you are considering an employer of record, establish the arrangement’s legal basis before agreeing a start date. Spain’s rules on supplying workers to another business make a generic EOR promise insufficient.
Can you hire an employee in Spain without incorporating?
Yes, where the foreign employer can complete the relevant registrations and meet the employment obligations. Incorporation creates a Spanish company. Employer registration identifies the company responsible for the worker. Corporate tax presence is a separate assessment of the business’s actual activities.
For a foreign company without a Spanish work centre, the Social Security document list includes company formation evidence and a legal representative domiciled in Spain. EU companies and companies from third countries have different documentary requirements. Gather the correct version before promising a start date.
The company also needs a Spanish tax identification number, or NIF. The tax authority explains that nonresident entities undertaking transactions with tax consequences require one. An NIF does not itself establish that the company has no taxable presence.
Choose a permitted employment route
| Route | When available | Who is the legal employer | What must be in place |
|---|---|---|---|
| Direct foreign-employer registration | The foreign business can satisfy the Spanish registration and employment requirements for its actual operations | Your foreign company | NIF, appropriate Social Security contribution account, Spanish representative where required, payroll and employment compliance |
| EOR proposal involving worker supply | Only where the actual arrangement meets the applicable Spanish worker-supply rules | The identified employing company | Verified legal structure, required authorization and a lawful assignment ground; a service agreement alone is insufficient |
| Spanish subsidiary | Where the business chooses incorporation | The Spanish company | Incorporation plus employer registrations; outside the no-entity objective |
Under Article 43, hiring workers to supply them temporarily to another company requires a duly authorized temporary work agency, an empresa de trabajo temporal, or ETT. The same provision identifies unlawful supply where the arrangement merely makes workers available or the supplier does not exercise employer functions.
ETT assignments also have permitted-use conditions. An indefinite contract between an agency and its employee does not establish permission for an indefinite assignment to your company. Require a written explanation addressing the proposed role, supervision and assignment ground. Where those facts do not support the arrangement, assess direct employment instead.
Payroll administration can support direct employment, but the foreign company remains the employer. Calling the person a contractor does not change an employment relationship performed under another business’s organization and direction; the employment test follows the working relationship.
Confirm the person, job and work location are eligible
Complete these checks before issuing an unconditional offer:
- Work entitlement: Identify nationality, authorization category, expiry and any restrictions affecting this job. EU citizens have access to employment under the free-movement rules, subject to applicable formalities. For other workers, inspect the actual permission and decision; residence or an identity number alone does not establish permission for the proposed work.
- Immigration dependency: Someone requiring an initial employee authorization needs a separate process. The official requirements include employer compliance, financial capacity and a signed contract with commencement conditional on authorization effectiveness. Employer registration alone does not establish sponsorship eligibility.
- Job and sector: Record duties, reporting lines and any professional authorization the role requires. For an ETT assignment, check statutory exclusions, including strike replacement and specified hazardous work under Article 8.
- Actual worksite: Identify the municipality, province and remote-work pattern. Determine the applicable collective agreement, classification, salary floor, hours and local holidays. One city’s calendar cannot represent Spain.
- Employment category: Spanish law presumes an indefinite contract; a fixed term needs an evidenced legal ground.
A practical stop condition is a proposed permanent role directed by your managers, with an intermediary offering only to sign the contract and process pay. Resolve the worker-supply analysis before treating that proposal as the hiring route.
Prepare the offer and country employment terms
Use a written contract and a clear signing trail as your onboarding standard. Written form is specifically required for remote employment. Spanish or bilingual documents are a practical way to align the employee’s understanding with local administration; this is not a claim that every contract must be Spanish-only.
| Decision or document | Required information | Responsible party | Deadline or dependency |
|---|---|---|---|
| Employer file | Foreign formation/registry evidence, NIF, signatory authority and Spanish representative for the relevant route | Foreign employer and representative | Complete before employer registration and commencement |
| Worker file | Identity, Social Security number, work entitlement, address and payment account | Worker supplies; employer verifies | Entitlement and registration data before work; payment data before payroll cutoff |
| Salary and benefits | Annual gross euros, ordinary payments, extra payments, applicable agreement, classification, leave and agreed benefits | Legal employer with payroll adviser | Set before the offer is accepted |
| Hours and location | Schedule, worksite, remote pattern and time-recording arrangements | Employer and worker | Set before work; comply with the applicable agreement |
| Contract and signatures | Employer identity, duties, category, start conditions and signed employment terms | Employer and worker | Before work as an operational gate; statutory written-form rules also apply |
| Remote-work agreement | Equipment, expenses, schedule, work location and other mandatory contents | Employer and worker | Written agreement before regular remote work starts |
| Contract notification | Contract contents | Employer or authorized administrator | Within ten working days after conclusion |
| Basic contract copy | Required redacted copy, representative delivery where applicable and employment-office submission | Employer or authorized administrator | Follow the separate statutory copy process after signature |
Two details affect the offer immediately. Spain provides two extra payments each year; prorating them across twelve monthly payments depends on collective-agreement permission. State whether the annual offer includes those payments.
The remote-work law generally applies where remote work reaches 30% over three months, or the equivalent for a shorter contract. Its written-agreement requirement applies before that remote work begins. The notification deadline runs from contract conclusion, rather than first salary day.
The basic-copy duty is separate: deliver the copy to employee representatives, where present, within ten days of formalization, then send it to the employment office. Where there are no representatives, prepare and submit the basic copy anyway.
Complete the hire from agreement to first payroll
Use this seven-step sequence once the person and route qualify. These are dependencies, not a guaranteed processing duration.
- Approve the route. Your company documents who employs, who directs and which registrations apply. Obtain a role-specific assessment of any worker-supply or tax-presence issue. Completion evidence: an approved route and responsibility record.
- Establish employer readiness. The foreign employer and Spanish representative complete the NIF and employer-registration file. TGSS assigns the contribution account, or CCC; its registration guidance identifies form TA.6. Retain the assigned account evidence.
- Arrange coverage and administration. The employer identifies the occupational-contingency and temporary-incapacity coverage in its registration application under Article 14. Confirm filing access, payroll responsibility and prevention arrangements. Keep acknowledgements and service mandates.
- Sign the employment package. Employer and worker finalize the agreement, salary structure and remote terms after checking the applicable collective agreement. Completion evidence: signed documents and verified work entitlement.
- Register the employee before work. The employer or authorized administrator files the employee’s alta, using the correct CCC and start date. The registration rule requires filing before services begin and permits it up to 60 calendar days beforehand. Retain an accepted filing showing the correct effective date.
- Notify and finalize payroll inputs. The administrator communicates the contract within ten working days of conclusion. The worker supplies relevant withholding information through Modelo 145, provided to the payer. Payroll validates deductions, account details and the first pay period.
- Approve, fund and verify payment. Finance approves the payroll register and provides cleared funds according to the agreed schedule. The legal employer confirms the payslip and salary credit, then tracks contribution and tax remittances separately.
| Milestone | Must be complete | Evidence | Who confirms |
|---|---|---|---|
| Employer ready | Applicable registrations, representative, coverage and filing arrangements | NIF, CCC and coverage records | Legal employer and representative |
| Work may begin | Work entitlement, signed required documents, accepted alta and workplace readiness | Permission record, contracts, registration receipt and prevention file | Legal employer |
| Payroll approved | Salary period, deductions, account and funding | Approved register and cleared-funds confirmation | Payroll administrator and finance |
| First salary delivered | Correct net salary reaches the worker on time | Payslip and payment confirmation | Legal employer |
Hypothetical Madrid hire: a dated sequence
Assume an Irish software company, called Company A here, directly employs a Spanish citizen already living in Madrid. Company A is the legal employer. This is a permanent, fully remote role without customer-contract authority. Assume the applicable collective agreement, job classification, workplace treatment and tax position have been assessed, with no incorporation requirement identified for these facts.
By Thursday, November 12, 2026, assume Company A holds its NIF, Madrid CCC, coverage record, Irish formation/registry evidence and Spanish representative’s appointment. The worker has supplied identity, Social Security and payroll data. Both parties sign the employment and remote-work agreements that day; equipment and prevention arrangements are ready.
The administrator obtains the accepted alta on Friday, November 13, effective Monday, November 16, the first workday. It notifies the contract and submits the required basic copy on November 16, ahead of the notification limit. Counting ten working days from the next day after November 12 gives Thursday, November 26, excluding weekends and holidays. These dates avoid the November 2 and 9 holidays in the Madrid calendar.
If registration or work entitlement is unresolved, Company A postpones commencement and corrects the documents and filings. A missed contract-notification deadline requires immediate correction by the employer; it is not permission to withhold wages for work already performed.
Budget and prepare the first payment
Price the employment and the administration separately:
| Cost layer | What to allow for | Timing |
|---|---|---|
| Gross remuneration | Ordinary salary, extra payments and applicable supplements | Recurring; payment pattern depends on the agreement |
| Employer statutory costs | Applicable employer contributions and occupational-risk charges, using current bases and rates | Recurring; calculate for the actual worker and role |
| Administration or EOR fee | Payroll/representation services for direct employment, or the fee for an accepted EOR arrangement | Commercial terms; separate setup and recurring charges |
| Conditional items | Equipment, remote expenses, agreed benefits, translations and any permitted immigration process | Identify one-time and recurring amounts individually |
For Company A, assume €42,000 annual gross in fourteen equal payments. Each full ordinary payment is €3,000; the November salary and extra-payment accrual reflect the mid-month start under the applicable rules. Payroll calculates those amounts before approval. This illustration does not specify a universal contribution percentage or net salary.
Assume the administrator’s commercial input cutoff is Friday, November 20, cleared funding is required by Wednesday, November 25, and the agreed first salary date is Monday, November 30, 2026. These are example inputs, not statutory cutoffs or a Borderless commitment. Under these assumptions, payroll approves the prorated November register, finance funds it on time, and the worker receives the correct net salary on November 30 with a payslip.
Missing the commercial cutoff requires an exception or alternative payment process owned by Company A. It does not move the agreed wage date: salary payment rules require punctual payment, with regular pay periods no longer than a month.
Keep remittance funding separate from the worker’s salary. The foreign-employer withholding rules can apply without a permanent establishment. For ordinary General Scheme contributions, the employer pays both shares, deducting the worker’s share from salary; contributions are normally due the following month. November contributions therefore need December funding as well.
What your company still manages after the hire
- Supply accurate hours, absences, variable pay and work-location changes to the legal employer or administrator. Spain requires a daily time record.
- Maintain workplace risk assessment, prevention and training under the prevention law. For regular remote work, the employer must provide necessary equipment and cover relevant expenses under remote-work obligations.
- Review pay, duties, location and contract changes before implementing them, including their effect on any assignment or work permission.
- Limit access to employee records and document payroll data sharing using the AEPD’s employment privacy guidance.
- Reassess commercial and tax facts when authority or activities change. The tax authority’s permanent-establishment guidance identifies fixed places and habitual contracting authority under domestic rules; the applicable treaty also matters. An EOR contract does not settle that analysis or authorize regulated business activities.
Questions about hiring without an entity in Spain
Can the foreign company sign the employment contract?
Yes, through the supported direct-employer route. Put the foreign company’s actual identity on the contract and complete its Spanish employer obligations. An administrator’s involvement does not transfer employer status.
Can we start while the CCC is being processed?
Do not schedule work until employer readiness and the employee’s prior alta are complete. A submitted application is different from an assigned account and an accepted employee registration.
Does an EOR automatically make a permanent assignment lawful?
No. Establish the arrangement’s actual legal basis, including required authorization and permitted assignment conditions. A permanent employment contract at the provider does not answer that question.
Does a resident employee need sponsorship?
That depends on the person’s actual right to work. Check their category and any restrictions. Do not assume a residence card proves unrestricted access, or that changing the proposed employer preserves every permission.
Must first salary wait until the next payroll cycle?
No internal cutoff overrides timely wage payment. Agree the first pay date before work begins and arrange an exception process if normal processing cannot meet it.
For an EOR assessment, bring Borderless AI the role, actual worksite, nationality/work-permission details and target start date. Borderless offers EOR and payroll services. Ask the team to confirm whether the specific Spanish arrangement is supportable, who would employ the person and which readiness evidence is required before committing to onboarding.
