Employer of Record in Spain

For companies building teams of 10 or more in BD, sales, customer success, finance, or engineering — not for individual hires.
Talk to us about Spain

Why companies build teams in Spain

Lundi's coastal European base — Málaga for technical outposts and revenue functions, Barcelona for design and product, Madrid for finance. Built for Nordic, DACH, and Benelux companies already used to European employer-cost levels.

Languages

Spanish

Payroll Frequency

Monthly

Currency

EUR

Capital City

Madrid

Employer Tax Rate

30.00%

Spain is for companies already operating in high-employer-cost European markets — Nordic, DACH, Benelux — looking for a southern base for technical, revenue, and product teams. American companies typically find Spanish employer contributions (29–32% of gross) punishing relative to Poland or Vietnam. Spain is the right answer when retention, lifestyle, and access to internationally-mobile European talent matter as much as headcount cost. Málaga for technical outposts and revenue functions, Barcelona for design and product, Madrid for finance. For companies building teams of 10+, not individual hires.

Why companies build teams here

Spain is a destination market, not a gateway. It works for companies that already accept European-level employer contributions — typically Nordic, DACH, or Benelux companies expanding south — and want talent quality, retention, and a lifestyle base. American companies looking purely for cost arbitrage will find Poland, Vietnam, or Mexico 40–60% cheaper for comparable roles. Spain rewards a different intent.

Three operating hubs, three different logics.

Málaga is where Lundi is building presence. The city has become a real regional operations and outpost market — Vodafone built its European Technology Hub in Málaga, and other technology multinationals have followed. Costa del Sol is increasingly the destination for European tech talent who want to live near a coast and stay inside the EU. Strong fit for technical operations, customer success engineering, and sales/business development functions.

Barcelona is Spain's design and product capital. Senior product designers, product managers, and product engineers. Alumni networks from Typeform, Glovo, Wallapop, and Factorial are active in the local market. Strong fit for product-led companies prioritising design quality.

Madrid is the financial and corporate hub. F&A, treasury, controllership, financial-services-adjacent roles, and large-enterprise account management. Spanish CFO and Big Four alumni concentrate here.

International talent is relocating to Spain. Skilled professionals from across Europe — Germany, Sweden, Netherlands, Poland, Romania, Ukraine, the Baltics — are increasingly building careers in Spain, particularly Málaga and Valencia. Climate plus EU mobility makes this a structural shift, not a digital-nomad trend. Lundi recruits across this internationally-mobile European pool and stands teams up on Spanish contracts, delivering Spanish residence and tax treatment while keeping the talent funnel wider than Spain alone could provide.

Operating context. Spain is on CET — full overlap with UK and EU working hours, morning overlap with US East Coast, end-of-day hand-off to Asia. English proficiency among Spanish white-collar professionals is generally strong in tech, design, and BD roles, particularly in Barcelona and Málaga; Madrid finance and government-facing roles vary more. Spain vs Portugal: Portugal offers slightly lower employer costs, but a thinner senior talent pool and less developed tech ecosystem. Spain wins on talent depth and city specialization; Portugal sometimes wins on unit cost.

Employer cost reality. Social security contributions run 29–32% of gross, plus 14 statutory holidays, paid sick leave, and sector-specific convenio benefits. All-in employer cost typically lands ~35% above gross. Mid-level technical roles run €4,500–€7,500/month all-in. Senior engineering leads run €8,000–€12,000/month. The premium versus Poland is real — the value is retention and seniority, not unit cost.

Employment Structure: EOR, Entity, or Build–Operate–Transfer

Spanish employment law is rigid, mandatory benefits are extensive, and termination provisions favour the employee. The cost of getting the structure wrong is high — making competent local HR non-negotiable. But Spain also has several structures specifically designed for inbound talent that materially improve the economics.

EOR works for headcount under 8–12. Lundi's Spanish S.L. provides compliant employment for first hires, country pilots, or small initial teams. Mandatory components — Seguridad Social registration, statutory holidays, parental leave, sector convenio benefits — are administered for you. The EOR model hits its ceiling around 8–12 employees, or when role-specific equity, complex variable compensation, or multi-region operations enter the picture.

Entity makes sense at scale or when IP localisation matters. A Spanish S.L. unlocks tax-favourable structures, equity participation for senior hires, and full control over collective bargaining agreement selection. Lundi's Build–Operate–Transfer pathway runs the team under our entity for 12–24 months, then transfers everything — employment contracts, equity arrangements, infrastructure — to your own Spanish entity once you've validated the operating model.

Beckham Law (special expat tax regime). Inbound professionals who relocate to Spain and have not been Spanish tax residents in the previous 5 years can opt into Spain's special expat regime: a flat 24% income tax rate on Spanish-source employment income up to €600,000 (47% above), for the first 6 years of Spanish residence, with foreign-source income generally exempt. For senior hires being relocated from other European or US markets, this is often the single largest financial argument for choosing Spain — and a structure Lundi configures at onboarding when employees qualify.

Ley de Startups (Startup Law, 2022). Qualifying startups (ENISA-recognized) get reduced corporate tax (15% for the first 4 profitable years), more favourable stock option taxation, deferred capital gains on share sales, and accelerated pathways for non-EU talent. If your operating entity qualifies, the cost structure and equity treatment improve materially.

Digital Nomad Visa. Spain's DNV (created under the Startup Law) lets non-EU professionals work in Spain for foreign employers, with a 24% flat tax rate similar to Beckham Law. For talent from Serbia, Ukraine, Georgia, the UK, or non-EU Americas, the DNV is the structural on-ramp. Lundi handles sponsorship logistics where applicable.

Why HRBP infrastructure matters more in Spain than in most markets. Performance management, probation extensions, and termination flow through sector-specific convenios colectivos. Generic EOR platforms don't engage with this — they leave you exposed when termination is needed or when a dispute requires Spanish-law-literate negotiation. Every Lundi Spain team includes a named HRBP from day one. For 15+ headcount teams, this scales to a dedicated in-country HR partner.

Cost of Employment in Spain

Spanish employer costs are among the highest in Europe. Total employer contributions run roughly 30–32% on top of gross salary: Social Security general regime (23.6%), Unemployment (5.5–6.7%), FOGASA salary guarantee fund (0.2%), Professional Training (0.6%), and Workplace Accident insurance (0.9–7.15% depending on activity classification).

Plus mandatory extra payments: Two extra payments per year (pagas extras, typically July and December), each equal to one month's salary — functionally a 14-month salary structure. Often prorated into monthly pay (prorrateadas) for foreign employers.

Indicative gross annual salary ranges (2026):

  • Junior engineer or accountant: €28,000–€38,000
  • Mid-level engineer or senior accountant: €40,000–€60,000
  • Senior engineer or finance manager: €60,000–€90,000
  • Tech lead or controller: €80,000–€120,000+

Lundi's Spanish entity handles all Seguridad Social contributions, IRPF withholding, pagas extras administration, and Workers' Statute compliance.

Talk to us about Spain

Employer Statutory Contributions

Employer contributions in Spain total roughly 30–32% of gross salary, covering Social Security general regime (23.6%), Unemployment (5.5–6.7% varying by contract type), FOGASA salary guarantee (0.2%), Professional Training fund (0.6%), and Workplace Accident insurance (0.9–7.15% by activity classification). Mandatory: two annual extra payments (pagas extras) each equal to one month of salary, or prorated monthly.

Employee Income Taxes in Spain

Employees in Spain are taxed progressively from 19% to 47% depending on income bracket (plus regional surcharges). Employees also contribute roughly 6.35% to Social Security (4.7% general regime, 1.55% unemployment, 0.1% training).

Employee Probation in Spain

In Spain, probationary period maximums depend on the role: typically 6 months for technicians and qualified professionals, 2 months for most other workers. Some collective bargaining agreements set their own limits.

Employee Overtime in Spain

In Spain, the standard work week is 40 hours, with a daily maximum of 9 hours unless otherwise agreed by collective bargaining. Overtime is capped at 80 hours per year for ordinary overtime (excluding force majeure or compensated time off). Overtime is generally paid at the regular rate unless collective bargaining specifies a premium, or compensated with equivalent rest time within 4 months.

Employee Notice in Spain

Notice periods in Spain depend on contract type and reason for termination. For permanent contracts: employers must give 15 days' notice for objective dismissal (or pay in lieu). For employee resignation: 15 days minimum unless otherwise specified in collective bargaining agreement (commonly 15–30 days for skilled roles).

Termination in Spain

Termination cost in Spain depends on grounds: Fair dismissal (objective causes — economic, organisational, technical, or production-related): 20 days of salary per year of service, capped at 12 monthly salaries. Unfair dismissal (or where employer concedes wrongful termination): 33 days of salary per year of service (45 days/year for service prior to Feb 2012), capped at 24 monthly salaries. Termination for serious misconduct: no severance required if cause is established.

Team Structures We Build

Typical Spain teams Lundi builds and operates:

Technical Operations Outpost — Málaga (15 to 60 people). Platform engineering, internal tools, infrastructure, customer success engineering, revenue operations. The structure technology multinationals have built in Málaga — concentrated technical capability outside HQ, with coastal lifestyle as the retention anchor. Mid-level operators €3,500–€5,500/month all-in. Our most-requested Spain configuration.

Engineering & Product — Barcelona and Málaga (10 to 40 people). Backend, full-stack, mobile, data, platform engineering. Senior design and product talent concentrated in Barcelona; engineering bench split between Barcelona and Málaga. Mid-level engineers €4,500–€7,000/month all-in; senior staff and tech leads €7,000–€12,000/month. Strong fit for SaaS, fintech, and consumer product companies. Beckham-regime-qualifying for relocated senior hires.

Sales & Business Development — Málaga / Costa del Sol (8 to 25 people). Multilingual SDRs, AEs, and account managers serving European customers. Spanish, English, German, French, Nordic, and Eastern European language combinations are routinely sourced from the internationally-mobile talent pool relocating to Spain. Mid-level reps €3,000–€5,000/month base plus variable, all-in landing €50,000–€85,000 per rep annually.

Design & Product — Barcelona (5 to 20 people). Senior product designers, brand designers, product managers. Spain's deepest hub for designer-product talent. Alumni from Typeform, Glovo, Wallapop, and Factorial active in the local market. Mid-to-senior €5,000–€9,000/month all-in. Strong fit for product-led companies prioritising design quality.

Finance & Controllership — Madrid (8 to 25 people). Multi-currency accounting, controllership, FP&A, treasury, audit liaison. Spanish CFO and Big Four alumni concentrate in Madrid. Mid-level €4,000–€7,500/month all-in. Strong fit for financial services or enterprise SaaS with complex revenue recognition.

What Makes Lundi Different

Five things distinguish Lundi from an EOR platform operating in Spain:

1. Local recruiters who can source the mobile European talent pool. Lundi recruiters in Málaga and Barcelona know the local Spanish market — but they also work the broader European talent pool that's relocating to Spain. Engineers, designers, and operators from Germany, Sweden, the Netherlands, Poland, Romania, Ukraine, and the Baltics are increasingly building careers on the Costa del Sol; Lundi recruits across this internationally-mobile pool and stands teams up on Spanish contracts. The capability widens your effective talent funnel beyond what Spain alone can provide.

2. Dedicated Spanish S.L., not a shared employment pool. Lundi employs through its own Spanish entity, not a co-employed marketplace pool. Convenio colectivo selection, sector classification, and probation structures are set for your team specifically. Where appropriate, we establish a dedicated entity exclusively for your team — structured from day one for transfer to you under the BOT pathway. Beckham Law and Startup Law structures applied at onboarding where qualifying.

3. An embedded HRBP, not a support ticket. Spanish labour relationships require active management. Performance, probation, sector convenio benefits, and termination negotiation all flow through a named HRBP present in your Slack or Teams. For Spain teams above 15 headcount this scales to a dedicated in-country HR partner — a hard requirement given Spanish employment law complexity.

4. Hyperlocal operations. Workspace through Málaga TechPark, Barcelona's 22@ district, or Madrid central business district — through to dedicated fitted offices for larger teams. Health benefits sourced through Sanitas, Adeslas, or Mapfre — Spanish white-collar standard, not generic international cover. Equipment procurement local; relocation logistics for inbound European hires handled in-house by Lundi.

5. Spain is a long-term operational market for Lundi. Spain is one of Lundi's core operational markets — the recruiter network across Málaga, Barcelona, and Madrid is staffed by Lundi employees and has been built over years, not deployed remotely. Málaga in particular is a strategic bet: the city is becoming a serious destination for internationally-mobile technical talent, and Lundi is building infrastructure to be on the ground as that happens.

How Lundi works in Spain

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
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Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
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Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
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Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building international teams of 10 or more — typically in finance, accounting, HR/payroll, BD/sales, operations, or IT. Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.

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