Best EOR Providers for Hiring in Spain 2026

Summary

Remote is the best EOR for hiring in Spain. They run an owned Sociedad Limitada (SL) with direct control over Seguridad Social filings, pagas extras calculations, and convenio colectivo compliance — the three areas where providers get Spain wrong. Deel is the faster option when you need a Spanish contract signed in 48 hours and Spain is one country in a broader rollout. Spain’s employer social security runs ~30% of gross salary — the single biggest cost most companies don’t budget for. Employment contracts default to indefinido (permanent). Employees receive 14 pagas per year: 12 monthly payments plus two pagas extraordinarias (typically in June and December, though many convenios allow monthly proration). Dismissal costs are real: despido improcedente (unfair dismissal) runs 33 days’ salary per year of service, capped at 24 months’ pay. Despido objetivo (objective dismissal, e.g., economic reasons) costs 20 days per year, capped at 12 months. Probation periods range from 2 months for standard employees to 6 months for titled professionals (técnicos titulados). The statutory minimum vacation is 22 working days. Your EOR needs to know all of this cold, because the Inspección de Trabajo does.

Quick Decision

• Pick Remote for Spain — Spain’s Inspección de Trabajo audits employer chains, and Remote’s owned SL with direct Seguridad Social registration is the cleanest answer to “who employs this person and under which convenio?”
• Pick Deel only if Spain is one of 10+ countries in a simultaneous rollout and hires are standard indefinido in well-understood sectors — the partner model handles the basics but not multi-convenio complexity or SMAC conciliation proceedings.
• Budget termination correctly from day one: most Spanish dismissals end as despido improcedente (33 days per year of service, 24-month cap) regardless of whether the documentation supports a cheaper objetivo route. Build that number into headcount cost models before hiring.

Top Picks

1. Remote — Best for Compliance Certainty

Most teams get a stronger decision signal by combining this page with how to choose an EOR, pricing negotiation guidance, and the EOR glossary. Remote operates its own Spanish SL (Sociedad Limitada), giving them direct employer status with the Tesorería General de la Seguridad Social and the Agencia Tributaria. No local partners sitting between your employee and the entity that signs their nómina. Remote handles Seguridad Social registration and monthly TC1/TC2 filings, IRPF withholding calculations, pagas extras (both lump-sum and prorated configurations depending on the applicable convenio colectivo), and the full onboarding workflow including alta in the Seguridad Social system.

Onboarding takes 5–7 business days. Contracts are generated as indefinido by default — the legally safe path in Spain — with all mandatory clauses under the Estatuto de los Trabajadores. Remote identifies and applies the correct convenio colectivo for each hire, which determines salary tables, job categories (grupos profesionales), overtime rules, and supplementary benefits. Pricing starts at $599/employee/month.

2. Deel — Best for Speed and Multi-Country Rollout

Deel uses a partner entity model in Spain. Onboarding runs 2–3 business days — the fastest here, though you should confirm the employee’s alta in Seguridad Social is filed before their start date (the fine for late registration starts at €3,126 ). Deel handles payroll through their local partner, including monthly Seguridad Social contributions, IRPF withholding, and basic pagas extras processing.

Deel is the right pick when you’re hiring across 10+ countries and Spain is one of them. The platform delivers a consistent experience, and Spanish employment contracts cover the statutory requirements. Where Deel is thinner: convenio colectivo nuances beyond the basics, complex pagas extras structures (some convenios mandate three or four extra payments, not just two), and termination proceedings where you need someone who’s handled conciliación at the SMAC (Servicio de Mediación, Arbitraje y Conciliación). Pricing: $599/employee/month.

3. Omnipresent — Best for European-First Teams

Omnipresent takes a Europe-focused approach with dedicated account managers who know Iberian employment law. Their Spain offering covers Seguridad Social registration, IRPF, pagas extras, and convenio colectivo alignment, with an assigned HR specialist to walk you through why Spanish payroll looks different from what you’re used to.

Onboarding takes 5–10 business days. Omnipresent uses a partner entity model, adding one more link in the compliance chain. The trade-off is price: starting around $499/employee/month , they’re the most affordable option here. The platform is less polished than Deel or Remote, but the human support layer compensates when you need someone to explain the difference between a despido objetivo and a despido disciplinario at 9 PM. Good fit for companies with 3–8 Spanish employees who want a responsive person, not just a dashboard.

4. Papaya Global — Best for Payroll Analytics

Papaya Global earns its place through payroll intelligence. A Spanish nómina has 20+ line items — contingencias comunes, desempleo, formación profesional, FOGASA, IRPF across multiple tranches, pagas extras accruals, and convenio-specific supplements. Most EOR providers hand you a PDF. Papaya’s dashboard breaks every line item down with real-time cost modeling.

If your finance team needs to understand why a €45,000 salary actually costs €62,000+ and which line items change when you cross Seguridad Social contribution bases, Papaya is the tool. Onboarding takes 5–7 business days. Pricing runs ~$650–$770/employee/month — the premium buys visibility into the numbers, not faster compliance.

Local Alternative: Lano

Lano is a credible local alternative for Spain-centric hiring if your priority is day-to-day payroll execution and local support on convenio alignment, pagas extras structure, and Seguridad Social filings rather than a broad global stack.

The trade-off is platform breadth outside Spain and core EU markets. For multi-continent rollouts, the larger global providers still provide stronger operational consistency across regions.

Why Spain Costs More Than You Expect

Social Security: ~30% Employer Contribution

Spanish employer social security contributions (cotizaciones a la Seguridad Social) total approximately 30% of gross salary. That’s the single largest employer cost, and it’s not optional or negotiable.

Contributions apply to the base de cotización, which is capped: the maximum monthly base for 2026 is approximately €4,720 and the minimum tracks the SMI (salario mínimo interprofesional), set at approximately €1,184/month for 2026 . Salaries above the maximum base still pay the fixed cap — your marginal employer cost drops on high earners, but you’re still paying ~30% on the first ~€56,640/year.

Pagas Extras: 14 Payments Per Year

Every Spanish employee is entitled to two pagas extraordinarias per year on top of their 12 monthly salaries — that’s 14 total payments. The Estatuto de los Trabajadores (Article 31) mandates this. The two extra payments are typically disbursed in June and December, though many convenios colectivos allow (or require) monthly proration, spreading the cost evenly across 12 payslips instead of two lump sums.

The practical impact: a €45,000 “annual salary” in Spain means 14 payments of ~€3,214 each (if paid in 14 installments) or 12 payments of €3,750 with no separate extras (if prorated monthly). Your EOR must configure this correctly based on the applicable convenio and your agreement with the employee. Getting it wrong creates back-pay obligations and Inspección de Trabajo findings.

Convenio Colectivo: The Sector-Level Rules

Spain has hundreds of active convenios colectivos — collective bargaining agreements that operate at the national, regional, or company level for each sector. They override the Estatuto de los Trabajadores on minimum salaries, job classifications (grupos profesionales), overtime rates, working hours, supplementary benefits, and sometimes the number and timing of pagas extras.

The convenio for oficinas y despachos (offices and professional services) is the most common for EOR-employed tech and professional workers. The convenio estatal de empresas de consultoría (consulting sector) applies to many IT service roles. Getting the wrong convenio means incorrect salary minimums, wrong job categories, and potential employee claims for back-pay.

Dismissal Costs: Know the Numbers

Spanish dismissal law distinguishes between three types:

Most EOR terminations in practice end up as improcedente, either because the documentation isn’t strong enough or because the employer opts to pay the higher indemnity to avoid litigation. The conciliación previa at the SMAC is mandatory before reaching the Juzgado de lo Social (labor court). Budget for 33 days per year of service as your realistic baseline.

Probation, Vacation, and Working Hours

Probation (periodo de prueba): 2 months for standard employees, 6 months for técnicos titulados (degreed professionals). During probation, either party can terminate without compensation or cause, but the period must be specified in writing in the contract. Some convenios colectivos set shorter probation limits.

Vacation: 22 working days per year minimum (30 calendar days under the Estatuto de los Trabajadores). Plus 14 public holidays — 10 national, 2 regional, and 2 local. Some convenios add days for seniority (antigüedad) or personal events (días de asuntos propios).

Working hours: 40 hours per week maximum (annual average), 9 hours per day maximum. Overtime is capped at 80 hours per year and must be compensated at the rate set by the applicable convenio or, failing that, with equivalent rest time. Many convenios set the effective annual working hours at 1,750–1,800 hours.

Practical Scenario: 3 Employees in Madrid at €45,000/Year

You’re a US company hiring 3 employees in Madrid at €45,000 gross annual salary each.

Per-employee annual cost:

• Gross salary (including pagas extras): €45,000
• Employer social security (~30%): ~€13,500
• Total employer cost before EOR: ~€58,500
• EOR fee ($599/mo ≈ €550/mo ): ~€6,600/year
• Total per employee: ~€65,100/year

For 3 employees: €195,300/year ($215,000 at current rates ).

Note: the €45,000 gross already includes the two pagas extras. If you quoted the employee €45,000 “gross annual,” they receive 14 payments of ~€3,214 each (or 12 prorated payments of €3,750). The ~30% employer social security is calculated on the full €45,000 base — not on the monthly payment amount.

The entity alternative: registering a Spanish SL (Sociedad Limitada) requires €3,000 minimum share capital (deposited at a Spanish bank), a NIF (tax ID number), inscription in the Registro Mercantil, and filing with the Agencia Tributaria and Seguridad Social. Setup takes 2–4 weeks using a gestoría (administrative agency) or lawyer — longer if the notarial appointment (escritura pública) gets delayed.

Ongoing entity costs:

• Gestoría / asesoría fiscal (tax advisory): €200–€500/month
• Payroll outsourcing: €40–€80/employee/month
• Registered office (domicilio social): €50–€150/month in Madrid
• Annual corporate filing and audit (if required): €500–€1,500/year
• Total for 10 employees: roughly €1,200–€2,000/month

Compare that to EOR at $599/employee/month × 10 = $5,990/month. The breakeven lands around 7–10 employees with an 18+ month commitment. Below that, EOR saves you from dealing with the Registro Mercantil, quarterly Modelo 111/190 filings, and the Spanish tax calendar. Above it, your CFO will ask why you’re paying $72,000/year in EOR fees when entity overhead is half that.

Comparison Table

How We Ranked Them

Five Spain-specific factors, weighted by what actually trips companies up:

1. Social security accuracy and Seguridad Social filings (30%) — Spain’s contribution system has multiple bases (contingencias comunes, desempleo, FOGASA, formación profesional) with different caps and rates that change annually. We tested whether each provider correctly applies the bases de cotización, handles contingencias profesionales by CNAE code, and files monthly through Sistema RED or Siltra without errors. A single filing mistake triggers inspection.

2. Pagas extras configuration (25%) — Does the provider correctly implement 14 payments? Can they handle both lump-sum (June/December) and prorated monthly configurations? Do they adjust when a convenio colectivo requires three or four extra payments? This is the most common payroll error for foreign companies in Spain.

3. Convenio colectivo expertise (20%) — Can the provider identify the correct convenio for your sector and region? Do they apply the right salary tables, job classifications (grupos profesionales), and supplementary conditions? We asked each provider to classify a senior software engineer under the oficinas y despachos convenio and checked whether the grupo profesional and minimum salary matched.

4. Termination and SMAC conciliation competence (15%) — Can the provider manage the full dismissal process: carta de despido, conciliación previa at the SMAC, and — if needed — representation before the Juzgado de lo Social? Spain’s labor courts are employee-friendly, and procedural errors automatically convert any dismissal into improcedente, triggering the 33 days/year indemnity.

5. Contract and onboarding compliance (10%) — Does the employment contract include all mandatory clauses under the Estatuto de los Trabajadores (Article 8)? Is the alta in Seguridad Social filed before the employee’s first day? Is the contract registered with the SEPE (Servicio Público de Empleo Estatal) within 10 days? These are pass/fail compliance items — no partial credit.

When to Skip EOR and Set Up a Spanish SL

A Sociedad Limitada (SL) is the standard corporate vehicle for foreign companies entering Spain. It’s the equivalent of a limited liability company — simpler and cheaper than a Sociedad Anónima (SA), which requires €60,000 minimum capital.

SL formation requirements:

• €3,000 minimum share capital (deposited in a Spanish bank account before notarization)
• Escritura pública (notarial deed) and inscription in the Registro Mercantil
• NIF (número de identificación fiscal) from the Agencia Tributaria
• Alta in the Seguridad Social as an employer
• At least one administrador (director) — can be a non-resident, but you’ll need a Spanish fiscal representative

Setup timeline: 2–4 weeks with a competent gestoría. The notarial appointment and Registro Mercantil inscription are the bottlenecks. Express formation (sociedad limitada de formación sucesiva) is possible with €0 initial capital, but banks and landlords won’t take you seriously.

Ongoing costs:

• Gestoría / asesoría: €200–€500/month
• Payroll processing: €40–€80/employee/month
• Domicilio social (registered office): €50–€150/month
• Annual accounts filing with Registro Mercantil: €200–€500/year
• Impuesto de Sociedades (corporate tax) filing: handled by your asesoría
• Total for 10 employees: roughly €1,200–€2,000/month

Rule of thumb: 7–10+ employees with an 18+ month commitment justifies an SL. Below that, EOR absorbs the gestoría fees, Registro Mercantil filings, quarterly tax declarations (Modelo 111, 303, 200), and the headache of Spanish corporate compliance. Above that threshold, the monthly EOR premium starts exceeding total entity costs, and your finance team will notice.

Our Final Verdict

Remote for companies that need iron-clad compliance in Spain. The owned SL, direct Seguridad Social registration, and proper convenio colectivo handling make them the default choice. Spanish labor inspectors (Inspección de Trabajo) are thorough and penalties are steep — this isn’t a market where you want a partner-of-a-partner standing between you and the regulator.

Deel for speed when Spain is one of many countries in your hiring plan. The partner model works for standard indefinido hires in well-understood sectors. Don’t rely on it for complex terminations or multi-convenio scenarios.

Omnipresent for European-focused teams on a budget who value having a human guide through Spanish employment law. The lower price point is real, and the dedicated account management matters in a country where a single pagas extras miscalculation creates a back-pay liability.

Papaya Global for finance teams that need to model and report on Spanish employment costs across salary bands and contribution bases. The payroll analytics justify the premium when you’re running headcount planning across multiple Spanish regions with different convenios.

Frequently Asked Questions

How much does it really cost to terminate an employee in Spain?

Budget for despido improcedente: 33 days’ salary per year of service, capped at 24 months’ pay. That’s your realistic number because most employer-initiated dismissals in Spain end up classified as improcedente — either the documentation doesn’t satisfy the Juzgado de lo Social’s standards, or the employer accepts the higher indemnity to avoid litigation. For a €45,000/year employee with 3 years of tenure, that’s roughly €12,150 in severance alone. Despido objetivo (economic, technical, or organizational grounds) only costs 20 days per year capped at 12 months, but you need to prove the grounds, deliver the carta de despido with 15 days’ notice, and provide the severance simultaneously with the dismissal letter. The mandatory conciliación previa at the SMAC adds 2–4 weeks to the process before you can even reach court.

How do pagas extras work, and can I just pay a flat monthly salary instead?

Spanish law guarantees two pagas extraordinarias per year (Estatuto de los Trabajadores, Article 31). By default, these are separate lump-sum payments made in June and December — each equal to one month’s base salary (or the amount set by the applicable convenio colectivo). Many convenios allow monthly proration, meaning you split the annual gross into 12 equal payments instead of 12 regular plus 2 extras. Either method is legal if the convenio permits it, but you must specify the structure in the employment contract. You cannot reduce total annual compensation by eliminating pagas extras — the 14-payment entitlement is a floor, not a suggestion. Some sector convenios mandate three or even four extra payments per year. Your EOR must configure the nómina correctly from month one.

What is a convenio colectivo and why should I care?

A convenio colectivo is a collective bargaining agreement that sets employment terms for an entire sector or region — salaries, job classifications, working hours, overtime rates, supplementary benefits, probation limits, and sometimes the number of pagas extras. They’re legally binding and override the Estatuto de los Trabajadores wherever they offer better terms. Spain has hundreds of active convenios at national, provincial, and company levels. The convenio that applies to your employee is determined by the employer’s economic activity (CNAE code), not the employee’s role. Applying the wrong convenio means incorrect salary minimums, wrong job classifications, and potential claims before the Inspección de Trabajo. Your EOR must identify the correct convenio at onboarding, apply its salary tables and conditions, and update when the convenio is renegotiated — which happens every 2–4 years for most sectors.

Before choosing a provider, review how to negotiate EOR pricing and current remote jobs by country market signals.

Further Reading

• Remote EOR Review — Top-ranked provider for Spain, with owned SL entity
• Deel EOR Review — Fastest onboarding for multi-country rollouts including Spain
• Omnipresent EOR Review — European-focused EOR with hands-on support
• Papaya Global EOR Review — Best payroll analytics for Spanish employment costs
• Hiring in Spain: EOR Guide — Full guide to Spanish employment law, social security, and compliance

Anchal Katyal · Founder, eorHQ

Anchal has spent over a decade in product strategy and market expansion across Asia and the Middle East. She evaluates EOR providers on compliance depth, entity ownership, payroll accuracy, and in-country support quality.

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