Summary
Remote is our default for Spain: owned SL, direct Seguridad Social filings, and convenio colectivo mapping that partner entities often miss. Deel onboards in 2-3 days when Spain is one country in a broader rollout. Employer load ~30%. Pick Remote for compliance depth; pick Deel for multi-country speed.
Quick decision: Pick Remote for owned-entity Seguridad Social compliance. Pick Deel for simultaneous multi-country launches. Cost/timeline signal: Plan around $599 per employee/month and 5-10 business days for standard hires.
Law, visas, termination, and employer costs: hiring in Spain guide.
How this ranking was built
This is a provider shortlist for Spain hiring, not a labor-law guide. We organize public signals (provider sites, review frontmatter, third-party ratings) with these weights:
| Criterion | Weight | Why it matters in Spain |
|---|---|---|
| Seguridad Social filing accuracy | 30% | Multiple contribution bases and annual rate changes |
| Pagas extras configuration | 25% | 14-payment and convenio extras are the most common payroll miss |
| Convenio colectivo mapping | 20% | Wrong sector agreement means back-pay and salary-floor risk |
| Termination / SMAC process | 15% | Procedural errors convert dismissals into expensive outcomes |
| Onboarding / contract compliance | 10% | Alta timing and SEPE registration are pass/fail |
Providers cannot pay for placement. Score methodology: eorHQ 6-Dimension Score. Full statutory detail stays on the See the hiring guide above.
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.
Spain Provider Evaluation Scorecard
| Criterion | Weight | What to verify | Deal-breaker |
|---|---|---|---|
| Termination process | High | Written involuntary exit workflow for Spain | US-style at-will language |
| Statutory contributions | High | Sample employer load calculation | Headline fee only, no statutory breakdown |
| Notice and severance | High | Contractual notice matches local law | Generic global template |
| Probation limits | Medium | Probation length tracked in HRIS | Rolling probation resets |
| Work authorization | High | EOR sponsors or coordinates permits | “Employee handles visa” |
| Entity ownership | High | Named legal employer in Spain | Partner-only with no escalation path |
| Payroll filings | High | On-time statutory remittances | Manual client responsibility |
| Onboarding SLA | Medium | Median days-to-start with references | “24–48 hours globally” |
Provider Ratings Matrix (G2, Capterra, eorHQ)
Editorial score plus third-party review volume at a glance. Year-1 column is eorHQ’s planning estimate (fee + FX + admin).
| Provider | eorHQ Score | G2 | Capterra | Trustpilot | Year-1 Est. | More |
|---|---|---|---|---|---|---|
| Remote | 4.7/5 | 4.6/5 (2,700) | 4.5/5 | 4.7/5 (2,100) | ~$716/mo | Alternatives |
| Deel | 4.8/5 | 4.8/5 (7,400) | 4.8/5 (3,200) | 4.7/5 (8,300) | ~$716/mo | Alternatives |
| Omnipresent | 4.2/5 | 4.5/5 (190) | 4.4/5 | 4.1/5 | ~$616/mo | Alternatives |
| Papaya Global | 4.5/5 | 4.5/5 | 4.4/5 | 4/5 | ~$716/mo | Alternatives |
| Lano | 3.8/5 | N/A | 4.7/5 (50) | N/A | - | Alternatives |
Third-party scores sourced from provider profiles at publish time; see individual reviews for links.
Worked Cost Scenario: 1 hire in Spain
Model a single employee at $6,000/month gross (mid-level professional). Statutory employer load ~30% = $1800/mo. EOR platform fee is additional.
| Provider | EOR fee | Statutory employer cost | Monthly run-rate |
|---|---|---|---|
| Remote | $599/mo | $1800/mo | $2399/mo |
| Deel | $599/mo | $1800/mo | $2399/mo |
| Omnipresent | $499/mo | $1800/mo | $2299/mo |
At 5 employees, a $150/month fee gap between finalists is $9,000/year: often less than one payroll correction or delayed filing in Spain.
What breaks EOR hiring in Spain
These are provider-selection issues, not a law summary. Full rules stay on the See the hiring guide above.
Termination edge case: Spain’s Estatuto de los Trabajadores offers three dismissal types with distinct costs and procedures.
Visa edge case: This test doesn’t apply to EU Blue Card holders, highly qualified professionals processed through UGE (Unidad de Grandes Empresas), or roles on the shortage occupation list (catálogo de ocupaciones de difícil cobertura), published quarterly.
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.
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
| Provider | Entity Model | Starting Price | Onboarding Speed | Best for | Tradeoff |
|---|---|---|---|---|---|
| Remote | Owned SL | $599/mo | 5–7 days | Compliance certainty | Higher monthly fee |
| Deel | Partner | $599/mo | 2–3 days | Speed and global rollout | Less direct local entity control |
| Omnipresent | Partner | ~$499/mo | 5–10 days | European teams on a budget | Less direct local entity control |
| Papaya Global | Partner | ~$650–$770/mo | 5–7 days | Payroll analytics and reporting | Less direct local entity control |
| Lano | Local | Custom pricing | 5–10 days | Spain-first teams needing local support | Limited multi-country scale |
When to Skip EOR and Set Up a Spanish SL
The rule of thumb: 5+ employees with an 18+ month commitment. Entity setup costs and legal requirements vary by market. Full breakeven math and setup steps: See the hiring guide above.
Compiled verdict (public sources)
| Use case | Pick | Why |
|---|---|---|
| Best owned-entity default | Remote | Direct Spanish SL employment with strong finiquito handling. |
| Fast EU scaling | Deel | Rapid contracts when convenio classification is straightforward. |
| Payroll transparency | Papaya Global | Employer SS breakdowns for finance teams modeling Iberia expansion. |
| Human support layer | Omnipresent | Responsive account management for convenio and leave edge cases. |
Worked cost example
Four Madrid developers at €55k each: employer SS ~30% adds ~€66k/year across the team. EOR at $599/mo × 4 = $28,752/year. Wrong convenio classification triggers back-pay risk, verify your EOR maps the role to the correct sector agreement before day one.
Rule of thumb: If you are hiring 1–2 people for under 12 months, EOR wins on speed. Past 10–15 employees in one country with an 18-month commitment, model entity setup, the crossover depends on termination risk and local employer charges, not the EOR list price alone. See EOR cost guide and how to choose an EOR.
Frequently Asked Questions
How much does it really cost to terminate an employee in Spain?
Our Spain hiring guide covers termination and severance rules. Full rules: Spain hiring guide.
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.
Sources
Related Decision Pages
- Remote Review : Top-ranked provider for Spain, with owned SL entity
- Deel Review : Fastest onboarding for multi-country rollouts including Spain
- Omnipresent Review : European-focused EOR with hands-on support
- Papaya Global Review : Best payroll analytics for Spanish employment costs
How We Ranked for Spain
- Use-case fit in target hiring model
- Onboarding speed and timeline reliability
- Pricing clarity and total operating cost
- Support quality and escalation accountability
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