What to Consider When Registering as a Foreign Employer in Spain?

Are you about to enter into a new market? Have you read our earlier blog about creating a legal entity vs. registering as a foreign employer? If you have navigated the question of how to enter the Spanish market, and have decided that the foreign employer arrangement is your way forward, there are several considerations to ensure compliance with Spanish laws and regulations. Below, you will find a brief overview and some key aspects to take into account.

Legal representation

The first thing you will do when registering as a foreign employer in the Spanish market is to appoint a legal representative in Spain who will act on behalf of the company in all legal matters.

Registering at relevant social security and employment related authorities

To register as a foreign employer you first need to obtain a Spanish Tax Identification Number (Número de Identificación Fiscal or NIF) for tax purposes. This can be done through the Spanish Tax Agency (Agencia Tributaria).

You also need to register your company with the Spanish Social Security system (Tesorería General de la Seguridad Social) to cover your employees for social security benefits. Depending on the nature of the business activities, you may furthermore need to register the business with the Commercial Registry (Registro Mercantil) or other relevant authorities.

Employment Contracts and Documentation

In Spain, employment contracts are governed by both Spanish labour law and any collective bargaining agreement that may be in place. Spain recognizes various types of employment contracts, including permanent contracts (contrato indefinido) and temporary contracts (contrato temporal).

Employment contracts should specify the regular working hours, including any provisions for overtime work and compensation. It should also include salary, vacation, trial periods, duties and responsibilities as well as bonuses and benefits. It is, in addition, mandatory to keep track of employees working time, so make sure you have a suitable timesheet registration program. Internago have a timesheet solution integrated and available on the platform, see our latest blog on the subject.

In many industries, collective bargaining agreements negotiated between employers and labour unions may establish additional terms and conditions that apply to employment contracts within that sector.

Permits and Visas

Depending on the nature of the business activities and industry sector, there may be other registrations or permits required at the regional or local level. If the plan is for your company to hire non-EU/EEA/Swiss nationals, you might need to obtain work permits or visas for these employees.

Legal and Regulatory Compliance

Ensure compliance with Spanish labour regulations, including employment contracts, minimum wage requirements, working hours, and other labour laws.

Staying informed about changes in Spanish laws and regulations is important. Monitoring updates from regulatory authorities and seeking legal advice will help ensure ongoing compliance with Spanish legal requirements.

By addressing these considerations and seeking professional advice as needed, you can navigate the process of registering as a foreign employer in Spain and establish a compliant and successful presence.

Internago is your trusted partner, supporting you in all steps of registering as a foreign employer in Spain. We also provide international and local payroll and bookkeeping services.

Interested in learning more? Please visit Internago or our Payroll Portal. For further inquiries, contact us at info@internago.com.

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