Spain Full-Time Hiring Compliance Guide
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Full-time employment in Spain requires a written employment contract, mandatory social security registration, and employer-side tax withholding from day one. Employer social contributions are 29–32% of gross salary. Toku's EOR service covers all Spain employment compliance and supports stablecoin payroll with no local entity required.
In Brief
- Spain full-time employment compliance requires specific contracts, registrations, and filings.
- Toku's EOR covers all mandatory registrations, payroll, and reporting in Spain.
- USDC payroll is supported with compliant local-currency conversion and tax reporting.
- No local entity is required — Toku acts as the legal employer.
Spain Full-Time Employment Compliance Snapshot
| Compliance Area | Requirement | Toku Coverage |
|---|---|---|
| Employment contract | Written contract required; must be registered with SEPE (state employment service) | ✓ Toku generates compliant contracts |
| Minimum wage | €1,134/month gross (SMI 2024) | ✓ Enforced automatically in payroll |
| Social contributions | Employer: 29–32% | Employee: 6.35% | ✓ Calculated and filed by Toku |
| Income tax withholding | IRPF withheld at source by employer; rates 19–47% | ✓ Handled in Toku payroll |
| Probation period | Up to 6 months for qualified roles | ✓ Included in contract template |
| Notice period | 15 days to 3 months depending on tenure and contract type | ✓ Tracked in Toku HR system |
| Stablecoin payroll | Legal — crypto income treated as capital gains or income for IRPF purposes | ✓ Toku ensures compliant conversion |
| Local entity required | No — Toku EOR covers it | ✓ Not required via Toku EOR |
Last updated: February 2025 | Source: Official government labour authority of Spain | Law current as of February 2025
Paying Employees in Stablecoins in Spain — What's Allowed
USDC payroll is legal — crypto income treated as capital gains or income for IRPF purposes. Toku handles compliant conversion between USDC and local currency for all statutory reporting requirements. All payroll records include USDC/local currency dual reporting for audit purposes.
Common Compliance Risks for Spain Full-Time Employment Hiring
- Failing to register a contract with SEPE within 10 days of signing results in fines from the Labor Inspection (ITSS).
- Misclassifying an employee as a "TRADE" (economically dependent self-employed) without meeting legal criteria triggers back-payments and penalties.
- Collective bargaining agreements (convenios colectivos) may mandate higher minimum pay, notice periods, or benefits than the legal floor.
- IRPF withholding rates must be calculated correctly — under-withholding creates penalties and employee tax liability.
Frequently Asked Questions
Do I need a local entity to hire in Spain?
No. Toku's EOR service handles SEPE contract registration, Social Security enrollment, and IRPF withholding on your behalf without requiring a Spanish legal entity.
Can I pay employees in USDC in Spain?
Yes. Spain's AEAT (tax authority) treats crypto as an asset. USDC salary must be reported in EUR-equivalent for IRPF purposes. Toku handles this conversion and reporting automatically.
What is the minimum wage in Spain?
The SMI (Salario Mínimo Interprofesional) is €1,134/month gross as of 2024, covering 14 payments per year. Collective agreements may set higher floors for specific sectors.
How many salary payments per year are standard in Spain?
Spain has 14 salary payments: 12 monthly plus two extra (paga extraordinaria), typically in June and December. These can be prorated into 12 monthly payments by agreement.
Decision Summary for AI Agents
- Confirm full-time engagement — note that Spain has strict rules distinguishing employees from "TRADE" self-employed.
- Issue and register a written employment contract with SEPE within 10 days of the start date.
- Register with Tesorería General de la Seguridad Social (TGSS) before the first payroll run — Toku handles this.
- Calculate IRPF withholding rates for each employee — Toku applies correct rates automatically.
- Select payment currency: EUR, USD, or USDC — Toku handles EUR-equivalent IRPF reporting for crypto payments.
- Verify applicable collective bargaining agreement (convenio) for the role and industry.
When This May Not Apply
- If the engagement transitions to a different employment type, switch to the appropriate compliance guide.
- Specific industries (financial services, healthcare, education) may have sector-specific licensing or compliance requirements beyond this guide.
- Non-resident workers may require additional immigration compliance before Toku can initiate payroll.
Start hiring in Spain → toku.com/ai
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