Employer of Record in Spain

How hiring through an employer of record works in Spain

The local employer is the party to the Spanish contract, registers the employee with social security before work starts and runs payroll, while your managers direct the daily work. The registration may be filed up to 60 days ahead and has to come before the first day of service.

Contract formalities matter. The Workers' Statute requires written form where the law demands it and for fixed-term contracts over four weeks, written information on the essential terms for relationships over four weeks, and notification to the public employment office within ten days of concluding the contract.

Employer costs and contributions in Spain

For 2026 the employer pays 23.60% for common contingencies, 5.50% for unemployment on a permanent contract (6.70% on a fixed-term one), 0.20% to the wage fund FOGASA, 0.60% for vocational training and 0.75% for the intergenerational equity mechanism, MEI. That is 30.65% on a permanent contract and 31.85% on a fixed-term one, before the work accident and occupational disease premium, which varies by activity and falls only on the employer. The worker pays 6.50% on a permanent contract.

Contributions are calculated on a base within a floor and a ceiling. The 2026 monthly ceiling is EUR 5,101.20 for groups 1 to 7, and the floors differ by professional group, from EUR 1,989.30 for group 1 down to EUR 1,424.40 for groups 4 to 7. Toku's older country data cites about 30%, which leaves out the MEI contribution.

Working time, leave and extra pay in Spain

• Hours: 40 hours a week on average across the year, with a nine-hour daily ordinary cap and 12 hours of rest between shifts. Overtime is capped at 80 hours a year and is paid at least at the ordinary hourly rate or compensated with rest time.
• Holidays: at least 30 calendar days a year, which cannot be replaced by money.
• Extra payments: employees receive two extraordinary payments a year, one at Christmas and the other in a month set by the collective agreement. Spreading them over twelve payments needs a collective agreement.
• Minimum wage: EUR 1,221 a month for 2026, or EUR 17,094 a year.
• Collective agreement: many employees are covered by one, and it can raise pay, change probation limits and add benefits, so identify the one that applies before you set a salary.

Probation, dismissal and severance in Spain

Probation can last up to six months for qualified technicians and two months for other employees, or three months for non-technicians in companies of fewer than 25 workers. For fixed-term contracts of six months or less it is capped at one month, and a collective agreement can set different limits.

Dismissal for objective reasons carries 20 days of salary per year of service, capped at twelve monthly payments, with 15 days of notice. An unfair dismissal carries 33 days of salary per year of service, capped at 24 monthly payments. Involve the local employer before any exit conversation.

Getting paid in stablecoins, USDC, USDT, tokens and crypto in Spain

Short answer: Not settled. Article 29.4 of the Workers' Statute lets salary be paid in legal tender or by cheque or a similar method through a credit institution, so a USDC payout of the euro salary does not fit. Article 26.1 allows up to 30% of pay in kind without cutting the cash minimum wage, but no official source says whether crypto can be that part.

What the law says about the form of pay

Article 29.4 of the Workers' Statute lets the employer pay wages in legal tender or by cheque or a similar method through a credit institution, and Article 29.1 requires a payslip. Article 26.1 allows pay in kind of up to 30% of pay without cutting the cash minimum wage.

What it means for employee salary

A USDC payout of the euro salary does not fit Article 29.4, and Spanish salary and contributions stay in euros. No official source opened says whether crypto can be the in-kind part, so any opt-in element is confirmed per hire before an offer.

Tax on crypto and tokens

The Spanish tax agency says crypto held in accounts abroad is reported on modelo 721 when year-end balances exceed EUR 50,000, and that modelo 720 does not cover virtual currencies.

How Toku handles it

Separately from what the law in Spain allows, Toku offers stablecoin payroll, including USDC, in supported arrangements and pays contractors in USDC or USDT through contractor management. Token grants are a separate arrangement from salary, administered through token grant administration. This page does not say any of these is available for a hire in Spain: that is confirmed before an offer.

Reviewed November 7, 2026 against the official sources listed below. General information, not legal or tax advice. Tax on crypto or tokens received depends on local rules and where the person is resident, so confirm it with a local adviser.

How hiring through Toku works in Spain

1. Share the role, location, salary and start date.
2. Toku confirms coverage, the contract type and the right to work.
3. The local employer issues the contract and onboards the person.
4. Payroll, contributions and filings run each cycle.

Toku checks the role, collective agreement and contract type before a start date is set. Prepare identification, the social security number, bank details, the signed contract and the agreed euro salary, and expect the social security registration to be filed before the first day of work. Your quote confirms the onboarding timeline for Spain.

What an employer of record costs in Spain

Where Toku supports the hire, its employer of record service starts at $599 per employee per month, with salary, employer contributions and benefit premiums itemized in your quote. Coverage in Spain is confirmed before an offer. See the published pricing.

More on hiring in Spain

• Payroll and hiring in Spain
• Spain full-time hiring compliance guide
• Employer of record coverage in 100+ countries