WTS Energy provides Employer of Record services in Spain for energy, engineering, infrastructure, marine and industrial companies that need to employ professionals without first incorporating a Spanish entity. We act as the legal employer, manage Spanish employment contracts, payroll, IRPF withholding, social security, leave, immigration coordination and HR administration, while you manage the employee’s day-to-day work.

Spain is a major European market for renewables, power generation, grid infrastructure, hydrogen, LNG, ports, industrial maintenance and engineering services. Hiring in Spain requires disciplined handling of collective agreements, payroll contributions, employment-contract cause, working-time records, social security reporting and immigration rules for non-EU specialists.

WTS Energy supports Spain through its wider European workforce network, Spanish-language client resources and energy-sector HR, payroll and mobility expertise. Our EOR model helps companies hire quickly, convert contractors, support project ramp-ups and employ Spain-based specialists without delaying work for entity setup.

Why choose WTS Energy for EOR in Spain

WTS Energy is a practical employment partner for companies operating in technical, project-driven and regulated environments.

• Regional European support: WTS Energy coordinates Spanish hiring through its European office network and experienced HR, payroll and compliance specialists.

• Technical sectors specialization: We understand workforce needs for solar, wind, hydrogen, LNG, grid, power, ports, marine, industrial maintenance and engineering projects.

• Spanish payroll expertise: We coordinate payroll, IRPF withholding, social security contributions, unemployment, FOGASA, training and final pay.

• Immigration support: We help structure employment for non-EU specialists, including highly qualified professional, EU Blue Card, intra-company transfer and standard work authorization routes where relevant.

• Entity-free hiring: You can employ Spain-based personnel before opening a Spanish subsidiary, branch or payroll registration.

• Contractor conversion: We help move high-risk freelancers into employment where Spanish dependence, direction or integration rules create exposure.

• Hands-on HR support: Employees and client managers work with real workforce experts, not only an online workflow.

When to use an Employer of Record in Spain

An EOR is useful when Germany is important to the project but a local entity is not yet the right step.

• Enter Spain without a local entity: Employ a country lead, project manager, engineer or commercial specialist while testing the market.

• Mobilize an energy project team: Hire specialists for renewable energy, grid, hydrogen, LNG, marine or industrial project work.

• Employ non-EU specialists: Coordinate work authorization, salary, contract and start-date planning before onboarding.

• Convert contractors to employees: Reduce risk where a freelancer works under client direction, uses client tools or depends economically on one client.

• Bridge to a Spanish subsidiary: Employ staff while incorporation, bank account, tax registration and payroll setup are in progress.

• Support temporary project needs: Use fixed-term employment only where the legal cause, duration and documentation are defensible.

• Manage regional European hiring: Coordinate Spain-based hires alongside employees in France, Belgium, Germany, the Netherlands, Denmark and the UK.

• Maintain continuity during restructuring: Host employees during acquisitions, entity transfers or project transitions.

EOR should be reviewed carefully where the Spain-based employee will negotiate or sign contracts, hold regulated corporate positions, or create a Spanish taxable presence for the client. WTS Energy flags these issues before the role is launched.

Spain employment and immigration essentials (2026)

Employment contracts and fixed-term employment

Spanish employment is strongly shaped by the Workers’ Statute and applicable collective agreements. Employment is presumed to be indefinite unless a lawful temporary cause exists. Fixed-term contracts are generally limited to production circumstances or replacement of a worker with a right to return. The contract must specify the temporary cause, the concrete circumstances and the link between the cause and the expected duration.

For EOR employment, WTS Energy aligns the contract type, role, project duration, work location, working time, salary and collective-agreement assumptions before the employee starts. This is especially important for project work where a temporary role can easily become a recurring staffing need.

Working hours, rest and overtime

The Workers’ Statute sets the maximum ordinary working time at 40 hours per week on average over the year. Daily ordinary working time should generally not exceed nine hours. Some collective agreements or employee-representative agreements allow another distribution, while respecting rest periods.

Employees must generally receive at least 12 hours between working days and a rest break of at least 15 minutes where a continuous daily working period exceeds six hours. Overtime, standby, shift work, travel-heavy project schedules and site rotations must be planned against the contract, collective agreement and time-recording obligations.

Minimum wage

Spain’s 2026 minimum wage is set by Royal Decree 126/2026 at EUR 40.70 per day or EUR 1,221 per month. In annual terms, this corresponds to EUR 17,094 where the salary is paid in 14 payments.

Collective agreements can require higher wage tables, allowances, extra payments, overtime premiums or sector-specific benefits. Skilled energy, engineering and project-management roles should normally be benchmarked above the statutory minimum and against any immigration or collective-agreement threshold.

Paid leave, sick pay and notice

Spanish employees are entitled to paid annual leave agreed by collective agreement or individual contract, but never less than 30 calendar days per year. Public holidays are set nationally, regionally and locally.

Notice rules depend on the reason for termination, collective agreement, contract terms and whether the employee or employer is giving notice. Objective dismissal generally requires written notice and statutory process. EOR offboarding should therefore be planned around the legal reason, documentation, notice, severance, accrued leave and final settlement.

Payroll tax, social security and employer contributions

Spanish payroll requires IRPF withholding through payroll and social security contributions through the General Social Security Regime. The employer is responsible for calculating, withholding, reporting and paying the applicable amounts.

For 2026 planning, core payroll points include:

• The 2026 maximum monthly social security contribution base is EUR 5,101.20.
• Common contingencies are 28.30% in total, split 23.60% employer and 4.70% employee.
• Unemployment contributions are 7.05% for indefinite contracts, split 5.50% employer and 1.55% employee.
• Fixed-term unemployment contributions are 8.30%, split 6.70% employer and 1.60% employee.
• FOGASA is 0.20% employer-paid, and vocational training is 0.70%, split 0.60% employer and 0.10% employee.
• Occupational accident and disease premiums are employer-paid and depend on the applicable activity or occupation tariff.
• The 2026 intergenerational equity mechanism contribution is 0.90%, split 0.75% employer and 0.15% employee.
• IRPF withholding for employment income is calculated under the official 2026 Agencia Tributaria procedure and depends on pay, contract, residence, family circumstances and deductions.

Because Spanish payroll cost depends on salary, contract type, contribution base, collective agreement and workplace risk classification, WTS Energy validates payroll assumptions before confirming an EOR budget.

Pension obligations

Spanish employees are covered by the public social security pension system through employer and employee payroll contributions. Additional occupational pension obligations may arise under collective agreements, employer benefit plans or specific sector arrangements. However, Spain does not impose one universal employer-funded occupational pension contribution for every private-sector hire.

For professional energy roles, pension, life insurance, accident insurance, meal allowances, travel allowances and other benefits should be checked against the applicable collective agreement and market expectations..

Immigration and work authorization

EU, EEA and Swiss nationals can generally work in Spain under free movement rules, subject to registration requirements where relevant. Non-EU nationals normally need the correct residence and work authorization before starting employment.

Spain has several routes for skilled or business-critical personnel. Under the international mobility framework, highly qualified professionals, researchers, intra-company transferees, entrepreneurs, teleworkers and family members can fall under Law 14/2013 procedures. The official Inclusion Ministry filing page states that, for highly qualified professionals, researchers and intra-company transferees, the Spanish entity where the foreign national will provide services normally submits the application.

Salary thresholds for highly qualified professional and EU Blue Card cases should be checked at the time of filing. Official 2026 consultation material proposes a reference threshold of 1.4 times the latest INE annual gross average earnings, with an 0.8 coefficient for certain shortage or recent-qualification cases. However, WTS Energy treats the live official instruction and case facts as controlling before confirming eligibility.

Special tax scheme for inbound workers

Spain has a special tax regime for certain workers, professionals, entrepreneurs and investors displaced to Spanish territory. The Agencia Tributaria administers the regime through Modelo 149. Eligibility is fact-specific and should be reviewed before relocation, because payroll, residence, timing and documentation need to align from the start.

How WTS Energy’s Spanish EOR works

Before employment

WTS Energy confirms the role, work location, salary, benefits, collective-agreement assumptions, working-time pattern, project duration, reporting line and immigration status. We prepare the Spanish employment structure, confirm payroll and social security assumptions, and collect onboarding documents.

For non-EU candidates, we assess the likely immigration route before a start date is promised. We check whether the role, salary, qualification, employer structure and timing can support a highly qualified professional, EU Blue Card, intra-company transfer or another applicable route.

During employment

WTS Energy administers Spanish payroll, payslips, IRPF withholding, social security contributions, leave tracking, HR documentation and employee support. We coordinate salary changes, role changes, contract extensions, absences and project moves so employment records remain aligned with the actual assignment.

For energy and industrial projects, WTS Energy can support site onboarding, contractor conversion, cross-border assignments and workforce mobility planning.

End of employment

WTS Energy manages notice, final payroll, unused leave, severance calculations where applicable, statutory documents, social security closure steps, equipment return coordination and offboarding records. Where an exit is sensitive, we align process, evidence and communication with Spanish employment-law requirements.

Compliance and risk management in Spain

Spain rewards careful employment documentation and penalizes informal workforce structures.

• Permanent establishment risk: Spain-based employees who habitually negotiate or conclude contracts can create taxable presence concerns for a foreign company.
• Worker misclassification risk: False self-employment and economically dependent freelancer arrangements can trigger employment, social security and tax exposure.
• Temporary-contract risk: Fixed-term contracts require a documented legal cause and cannot be used to cover permanent staffing needs.
• Collective agreement risk: Salary, working time, allowances, notice, holidays and benefits may depend on the applicable convenio colectivo.
• Payroll contribution risk: Social security bases, contract type, unemployment rates, FOGASA, training, occupational premiums and IRPF withholding must be configured correctly.
• Immigration risk: Non-EU employees cannot begin work until the correct residence and work authorization is in place.
• Working-time risk: Site rotations, overtime, travel and standby arrangements need accurate records and collective-agreement review.

For EOR in Spain, WTS Energy manages the employment layer and highlights cases where the client should add Spanish corporate-tax, legal, immigration or regulatory advice.

Upcoming legislative changes (Spain, 2026)

Spain employers should monitor the following during 2026:

• 2026 minimum wage. Royal Decree 126/2026 set the SMI at EUR 1,221 per month, effective from 1 January 2026.
• 2026 contribution bases and rates. Order PJC/297/2026 set updated social security bases, the EUR 5,101.20 monthly maximum base, contribution rates, the 0.90% intergenerational equity mechanism and solidarity contribution rules for high earners.
• Working-time reform. The 2025 bill to reduce the maximum ordinary working week to 37.5 hours was rejected in Congress, but working-time, time-recording and right-to-disconnect reforms remain a political and compliance watch area.
• Skilled immigration salary thresholds. The salary threshold framework for highly qualified professionals and EU Blue Card cases should be checked before filing, because official instructions and INE salary references can change.
• Collective agreement updates. Sector wage tables and allowances are frequently updated and may exceed statutory minimums.

WTS Energy monitors these changes so Spain EOR payroll, HR and immigration planning remain current.