Hiring or Contracting in Spain: A Compliance Checklist for Businesses

Expanding into Spain should feel exciting, not confusing. The rules are clear once you know the order to follow and which authority needs what.

If you want a guided route through registrations, contracts, and filings, start with Spanish Lawyers Expertise in the UK. A bilingual team will map the steps, prepare compliant paperwork, and keep your timeline moving.

Your very first fork in the road is whether you are employing staff or hiring independent contractors. Employees trigger payroll, social security, and more documentation. Contractors are simpler, but only when the relationship is truly independent. If you control hours, tools, supervision, and exclusivity, the law may treat that person as an employee even if your contract uses the word freelance.

Before you make an offer, get your company registered as an employer. Spain requires a company to obtain a Social Security employer code before anyone starts work. The official Spanish Social Security employer registration page explains the when and the how. Once the business is set up, each worker must also be registered in the system before day one. Skipping either step risks fines and back payments, and it complicates later claims for sickness or maternity benefits.

Tax comes next. Employers withhold personal income tax on salaries and pay it over to the Spanish Tax Agency on a regular schedule. The Agencia Tributaria page for Form 111 sets out how quarterly withholdings are reported and paid. Even if a local provider runs your payroll, it helps to know which form you are signing and why the figures change month to month.

Contracts matter more than style. Spain’s labour code expects clarity on role, hours, pay, probation, and termination. Fixed term roles are tightly policed and must match specific grounds. Most businesses prefer indefinite contracts with clear probation and notice periods. If the hire moves countries with you, plan for social security coordination and confirm whether an A1 certificate applies for any posted period.

Contractors need the same care. Your agreement should define deliverables, autonomy, and liability. You should not set fixed hours or insist on exclusive service if you want to preserve contractor status. Ask for invoices with a tax number and keep evidence of independence such as the use of their own equipment and the ability to substitute staff.

Data is part of compliance too. Onboarding collects sensitive information, so document your lawful basis, retention periods, and access controls. Spain follows the GDPR framework, and regulators expect you to keep audit trails of who saw what and when.

Finally, pick local help that feels accountable. Combine practical payroll support with legal guidance that speaks to your risk, not just the statute. If you want one point of contact who understands cross border hiring from both sides, Spanish lawyers UK specialists can coordinate the pieces. For more complex structures and board level approvals, English lawyers specialising in Spanish law can align corporate resolutions, powers of attorney, and sign-off protocols so hiring does not stall at the last signature.

Final thought. Compliance in Spain is mostly sequence and paperwork. Set up your employer registration, register each worker, file your withholdings on time, and keep contracts aligned with the reality of the job. Do that, and hiring becomes a repeatable process rather than a leap into the unknown.