Editorial transparency and use of artificial intelligence
This article forms part of the CostaLuz Lawyers blog and is published for general informational and educational purposes only. It was prepared with the assistance of artificial intelligence tools and, before publication, was substantively reviewed and editorially approved by Maria de Castro, a Spanish-qualified lawyer registered with the Cádiz Bar Association under number 2745, founder of CostaLuz Lawyers and the person responsible for the editorial review of the published content.
This article does not constitute legal, tax, immigration, employment, estate-planning or investment advice and does not replace an individual assessment and the professional work of the appropriate CostaLuz Lawyers specialist. No action or omission should be based solely on this information.
Recruiting employees in Spain involves more than selecting candidates — it requires meeting specific legal, tax, labour and social security obligations from day one. We support foreign companies hiring in Spain for the first time or expanding existing teams, ensuring compliance, clarity and smooth onboarding.
We advise on employment structures, draft legally compliant contracts, manage employer registration, supervise payroll setup and assist with tax optimisation for inbound staff.
We operate nationwide, with strong experience in Málaga, Seville and Cádiz, where many international businesses are establishing teams and new operations.
Our Services in Employment & Hiring Compliance
Employment structures and hiring models
Guidance on whether to hire via a Spanish entity, branch, representative office, EOR (Employer of Record), or as transferred employees under intra-company regimes.
Employment contracts under Spanish law
Drafting and adapting permanent, temporary, executive or project-based contracts, including bonus, equity or stock-option clauses when applicable.
Employer social security registration
Obtaining the company’s employer registration code (Código de Cuenta de Cotización) and enrolling employees with Spanish Social Security.
Payroll setup and withholding compliance
Coordination of payroll setup, supervision of correct social security contributions and tax withholdings (IRPF), aligned with Spanish GAAP and group reporting.
Work permits and immigration for foreign staff
Support for work and residence permits for transferred executives or new hires, including highly qualified professionals and intra-company transfer regimes.
Inbound tax optimisation: Beckham Law
Assessment of eligibility and implementation of the 24% flat tax regime for qualifying employees relocating to Spain.
Internal policies and termination guidance
Preparation of employee handbooks, confidentiality and non-compete provisions; advice on lawful termination procedures and severance calculations.
Hiring in Spain – Key 2025 Compliance Snapshot
- Employer registration with Social Security is mandatory before hiring.
- Employment contracts must comply with Spanish labour law and, where applicable, collective bargaining agreements.
- Standard working time: 40 hours per week, with regulated overtime limits.
- Social security contributions: approx. 30% by employer and 6.4% by employee.
- Income tax withholding (IRPF): progressive, based on estimated annual earnings.
- Special 24% flat tax regime (Beckham Law) available for qualifying inbound employees.
- Termination rules require severance based on contract type and legal grounds.
Local insight, national coverage
While we work with employers across Spain, we are especially active in Málaga, Seville and Cádiz, supporting companies establishing hubs, service centres and relocated teams. Our clients value our ability to integrate Spanish employment compliance into their global HR and payroll systems.
Planning to hire staff in Spain?
We can help you structure employment correctly, onboard your first employees and maintain full HR compliance from day one.
For a complete overview of taxation in Spain, see our Your Guide to Spanish Tax.
Disclaimer: This information is provided for general guidance purposes only and does not constitute personalised tax or legal advice. Each case must be assessed individually according to the client’s specific circumstances. It is essential to consult a qualified specialist before taking any action or making any decision.
Legal Notice: The content on this page is provided for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. No action should be taken based solely on this content without first seeking independent professional legal counsel. Each case requires individual assessment based on its specific circumstances. CostaLuz Lawyers accepts no liability for actions taken or not taken based on this content.
Questions about Spanish tax?
We plan and file your Spanish taxes so you never overpay or miss a deadline. Bilingual help across southern Spain since 2006.