Hire in spain using an Employer of record

What is an Employer of Record?

An Employer of Record is a organisation that becomes the full legal employer of a company’s international workforce. Essentially, an EOR takes care of all the administrative tasks related to employment, including payroll, taxes, benefits, and compliance with local laws and regulations. This allows you to focus on your core business activities and avoid the complexities of setting up and managing your own legal entities.

Why Engage with an EOR in Spain?

There are several reasons why engaging with an EOR in Spain may be the best solution for hiring employees:

Compliance with local laws and regulations

As a foreign business, it can be challenging to navigate the legal and regulatory landscape in Spain. An EOR in Spain has the expertise to ensure that your employment practices comply with all local laws and regulations, including employment contracts, social security contributions, and tax obligations.

Hiring employees in Spain requires compliance with local laws and regulations, which can be complex and vary depending on the industry, region and type of employment contract. An EOR like Emerald is familiar with the country’s labour laws, therefore ensures that your business is up-to-date with legal and regulatory obligations.

Employers in Spain are required to withhold and pay various taxes and contributions on behalf of their employees. An EOR can handle this on behalf of your business, ensuring that taxes are paid to the appropriate authorities.

Spain has specific rules for employment contracts, including minimum wage requirements, working hours and benefits. An EOR provides compliant contracts to each employee, ensuring it meets Spanish law requirements and includes all necessary terms and conditions.

Finally, Spanish payroll regulations can be complex and require detailed record-keeping, which can be challenging for small HR teams that have lots of international employees. An EOR handles payroll management, including calculating and processing wages, maintaining employee payroll records and ensuring compliance with local requirements. 

By using an EOR, companies can ensure that they are compliant with Spanish labor laws and regulations, reduce their risk of fines and legal penalties, and focus on their core business operations.

Cost savings

When growing your business internationally it can be a costly endeavour for businesses of any size. Engaging with an Employer of Record can reduce business costs significantly. 

As previously mentioned, Spanish employment laws are complex and time-consuming. Businesses that slack on compliance put themselves at risk of fines and penalties for non-compliance. An EOR is responsible for maintaining compliance across all employment procedures, therefore, saves your business the risk and cost of getting it wrong.

One of the biggest costs an employer incurs is setting up an legal entity in the region they want to expand to. To hire employees in Spain or anywhere, a company must have a local entity registered in that country. Using an EOR allows a company to bypass this requirement and begin hiring employees immediately, so you can avoid the set-up and maintenance cost of an entity. 

Hiring and managing employees in Spain requires significant administrative work, including payroll processing, tax filing and more. An EOR can reduce this administrative burden but handling these tasks on behalf of the hiring company, freeing up time and resources to focus on other aspects of the business. 

Recruiting and hiring the right employees for your business in Spain can quickly become expensive, especially for companies that are new to the market. An EOR like Emerald is the only EOR on the market to offer a complete End-To-End Recruitment and Expansion solution. Emerald Technology reduces your recruitment costs by leveraging their experience, networks and expert knowledge of tech markets to find qualified candidates quickly and efficiently, anywhere in the world.

Speed of entry

Partnering with an EOR in Spain can significantly reduce the time it takes to enter the Spanish market. This is because the EOR already has a legal entity set up in Spain and can provide you with a ready-made solution for hiring employees.

An Employer of Record in Spain will have established processes and systems for onboarding new employees. They can help expedite the process by handling the necessary paperwork, including employment contracts, tax forms, and social security registration, so that new hires can start working as soon as possible. EOR’s like Emerald can have new employees onboarded in Spain within 48 hours. 

Overall, using an EOR in Spain can help employers streamline the hiring process and minimize the time, costs and resources needed to enter the market. By partnering with an experienced EOR, employers can ensure that they are fully compliant with all legal requirements and can focus on growing their business in Spain.