Countries/Spain/In-country employment
Europe · In-country employment
In-country employment in Spain
Spain is often a commercial or industrial seat for a multinational. Indefinite contracts are the default, severance is formula-based, and most packages are modelled on 14 payments a year.
A convenio colectivo can raise the wage floor and add supplements that do not appear in the national SMI.
Plan an in-country hire- ✓
Spanish employment contract — The person is employed under the Estatuto de los Trabajadores, not as a false autónomo.
- ✓
You still manage — Your managers set the work. We run the contract, TGSS, and payroll.
- ✓
No company first — Start the hire before you incorporate. Convert later if you open a Spanish entity.
Statutory stack
What sits on top of wages
Employer social security is roughly 30% of the contribution base, plus two extra monthly payments in a typical year. This is not a salary survey.
| Item | 2026 rule |
|---|---|
| Employer social security (indefinite contract) | Common contingencies 23.60% + unemployment 5.50% + FOGASA 0.20% + training 0.60% + MEI 0.75% + AT/EP (sector) |
| Typical all-in employer SS | About 30–32% of the contribution base; 2026 maximum monthly base €5,101.20 |
| SMI 2026 | €1,221 / month × 14 payments, or €1,424.50 if prorated over 12 (€17,094 / year) |
| Pagas extras | Two extra payments a year (Art. 31 ET), usually summer and Christmas, unless prorated into 12 months |
| Severance (budget, not a monthly cost) | 20 days per year (objective) or 33 days per year (unfair), plus finiquito of accrued pay |
Role salary ranges are not on this page. Open the 2026 salary guide when those figures are published.
Choose a path
In-country employment vs incorporating
A Spanish SL or branch is the usual long-term employer. In-country employment is for a first commercial or plant seat.
| In-country employment | Your own entity | |
|---|---|---|
| When to use it | A first country manager or commercial hire that must start before the company exists. | When you want your own Spanish company as employer. |
| Who employs | A licensed local employer holds the contract. Your managers direct the work. | Your Spanish company registers with TGSS and AEAT in its own name. |
| Convenio | The employing vehicle still has to apply the correct sector convenio to the role. | Your activity code drives the same convenio analysis. |
Onboarding
From briefing to first payday
TGSS registration (alta) must happen before the person starts. That — not the search — sets the calendar.
01
Briefing
Place of work, convenio, 12 vs 14 payments, and start date.
02
Contract
Written contract; indefinite is the default unless a lawful temporary ground exists.
03
Alta
Social-security registration before day one; AEAT withholding setup.
04
First payday
Monthly payroll with employer SS, IRPF withholding, and pagas extras accrual.
05
Convert or close
Move the person onto your Spanish company, or terminate with finiquito and statutory severance where due.
Compliance
Five points that change the hire
01
Fourteen payments
Model cost on 14 monthly salaries unless the contract or convenio prorates pagas extras into 12. The annual SMI is the same either way.
02
Indefinite is the default
Temporary contracts need a statutory ground. Chaining short contracts is a conversion risk.
03
Dismissal is not at-will
Objective dismissal is generally 20 days per year of service (cap 12 months); unfair dismissal 33 days (cap 24 months), plus the finiquito.
04
Convenio colectivo
Sector agreements often set higher minima, extra payments, and working-time rules. Read the convenio before you name a salary.
05
Work authorisation
EU/EEA/Swiss nationals work freely. Others need the correct authorization before they start.
Questions
FAQ
- Can a foreign company hire in Spain without a Spanish company?
- Not on its own TGSS account without a local employing vehicle. In-country employment uses a licensed local employer while your managers direct the work.
- What is the 2026 minimum wage?
- SMI is €1,221 per month on 14 payments, or €1,424.50 if paid in 12, totalling €17,094 a year (Real Decreto 126/2026).
- Are pagas extras mandatory?
- The Workers' Statute requires at least two extra payments a year. They may be prorated into monthly pay if the contract or convenio allows it.
- How much is employer social security?
- For an indefinite contract, plan around 30–32% of the contribution base (common contingencies, unemployment, FOGASA, training, MEI, and accident insurance), capped at the 2026 maximum base.
Labour-law detail for Spain sits on the hiring guide.
Other markets
Other in-country employment pages
Reviewed 11 September 2026
This is a hiring briefing for multinational employers, not legal advice. Statutory rates move by city, province, and sector. Confirm the place of work before you issue an offer.
Sources
- Estatuto de los Trabajadores — Art. 31 pagas extras; dismissal rules
- Real Decreto 126/2026 — SMI 2026
- TGSS / Order PJC/297/2026 — 2026 contribution rates and bases
Plan an in-country hire in Spain
Tell us the city, the role, and when they need to start.