Wherever you are in the world, you may be considering branching out your business endeavours and hiring in the European country of Spain. This may be because it has great positioning for trade, an open and competitive market, strong partnerships with a host of global locations and more – but getting set up here isn’t going to be as straightforward as some of its neighbouring countries.
Employment in Spain and PEO services
The biggest factor to consider before hiring for your company in Spain is that this will only be possible if you set up a local business entity or establish a partnership with a global professional employer organisation (PEO). Spain PEO can look a little different from the services offered in other countries, typically because of the rules and regulations required by the Spanish government when hiring native talent, but this can be the simpler, cheaper option of the two.
Spanish employees have a high level of support from the government and there are a host of regulations in place to safeguard individuals throughout the employment process and beyond. To hire in Spain, you will need to:
- Create comprehensive written employment contracts that are verified by the employee (this is mandatory)
- Provide additional benefits – the more you offer, the better your chances will be when hiring (consider features like private health insurance and travel stipends for example)
- Understand the taxation and accountancy rules
- Manage international payroll
- Understand factors like minimum wage requirements, overtime pay, maximum hours, leave policies, termination requirements and more
These are not the only things you will need to deal with and keep on top of, so a global PEO can be a worthwhile service to ensure you have every box ticked when it comes to hiring talent in Spain. Entering a co-employment relationship can be even more important when you consider that lacking in any area could see your efforts go to waste, or you may even get fined.
The benefits of hiring global PEO services for Spain
- Streamline employment-related HR tasks and processes including hiring and firing protocol, employee payments, payroll management, workers’ compensation, employment tax management and more
- A faster process for hiring new employees
- Assurance of compliance
- Help with employee onboarding and training
Working alongside a PEO can help you to get a feel for the working environment and financial economy in Spain without having to spend the time and money associated with establishing a local business entity. Jumping straight in with this can be expensive and take a significant amount of time to set up and you may not feel like it’s a worthwhile move once you have been operating in Spain for a few months or more.
The fact that partnering with a PEO is much quicker can also mean that you can take advantage of trends and establish your brand with little fuss. As many sectors and enterprises are evolving at a faster pace than ever before, you could miss out when waiting for the local business entity processes to be finalised.