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16 April 2024

What can an Employer of Record do for you in Spain?

Written by

Written by: María

Spanish Payroll Specialist

Are you interested in recruiting top-notch professionals in Spain, but your company has no legal entity in this beautiful country? As the specialized Employer of Record in Spain, we have the solution for you. 

Whether you’re testing the waters, relocating senior staff, or accommodating valued employees’ requests to work remotely from Spain, our specialized Employer of Record services offer the perfect solution. With us, you can seamlessly expand your team and explore opportunities in Spain with confidence.

Having established why you need to hire Spanish professionals for your company, let’s delve into how an Employer of Record can facilitate this process for you. This article will provide a brief overview of the service, illustrate the mechanics of cross-border collaboration, and offer a comparison between an EOR and alternative strategies for global hiring.

What does an Employer of Record service entail?

An Employer of Record service acts as an intermediary for employing individuals on behalf of. This service provider takes on the responsibility of managing employees’ payroll, handling payments, taxes, and insurances, while the and employees maintain their usual working relationship. In return for these services, the client pays a fee to the EOR, covering the service itself as well as employment-related costs.

Organizations choose Employer of Record services for various reasons. Some startups, lacking internal HR or payroll departments choose to fully outsource these functions. Another example are companies that undertake projects or expansions in new countries. They may leverage EOR services to ensure compliance with local regulations. Instead of establishing a new entity, they can utilize the infrastructure provided by the Employer of Record service provider, 

Employer, Employee and EOR: the triangle

Picture the setup like a triangle, with the Employer of Record at the center, on one side, you as the employer, and on the other side is the employee. While your everyday connection with your employee stays the same, the EOR handles all legal and administrative tasks efficiently, backed by clear contracts for a smooth partnership. This structured arrangement allows you to explore new countries, support your team, and manage any challenges effortlessly.

employer of record

Below you can take a look at the essential elements. These break down what an Employer of Record does for you as an employer in a new country into a few segments. In simple terms, its adept handling of compensation and benefits, the tax advantages it provides, and the intricacies of visa and work permit applications.

1. Facilitating seamless employment abroad with legal compliance

By utilizing an EOR’s assistance, you, as an employer, adhere to the regulations and laws governing local employment

2. Compensation and benefits in a foreign country is being handled

An Employer of Record will manage your employee’s salary and benefits in a foreign country

3. Enhancing your company’s advantages through tax advantages

As experts in tax benefits, an EOR can offer guidance to your company regarding qualification for such benefits

4. Handling all visa and work permit procedures

An Employer of Record helps guide your company through the complicated processes of visas and work permits

Comparing EOR with other approaches for global expansion

Let’s delve into direct comparisons to define the true nature of an Employer of Record and what it does and does not involve. In this section, we will explore the distinctions between EOR and other entities in the employment sector, highlighting crucial differences for international work ventures.

Join us as we reveal disparities between EOR and creating a new business entity, partnering with a staffing agency, and engaging with freelancers. We’ll offer concrete examples to empower you in making informed decisions about your employment strategies.

1. Opening up a new entity vs. EOR

Opting for an Employer of Record is a wise and efficient choice for your company when entering a new country. Establishing a new entity with legal, payroll, HR, and finance considerations can be both costly and time-consuming. In contrast, choosing an EOR provides swift resolution, scalability, transparency, and cost-effectiveness. The EOR simplifies the employment process in a new country through a fixed monthly fee, covering administrative tasks, payroll, and potentially additional expenses such as visas and work permits.

2. Staffing agencies vs. EOR

Staffing agencies primarily focus on recruitment when a client requires a new employee, whereas EOR providers come into play at a later stage. EOR is suitable for clients seeking to hire someone in a different country, requiring local employment but with the flexibility to explore new markets. In contrast to staffing agencies, EOR providers do not engage in recruitment; rather, they manage record-keeping, payroll, administration, and legal compliance in the new country. This subtle distinction underscores the specialized role of EOR in facilitating a seamless employment experience abroad.

3. Freelancing vs. EOR

Freelancing provides the freedom of independent contractor status, offering flexibility but also introducing uncertainties regarding project continuity and financial stability. Employer of Record becomes pertinent later in individuals’ careers, ensuring job security through established fixed contracts. EOR manages compliance, visa applications, and offers tax advantages, making it an excellent option for team international relocation while preserving job commitments.

Harness the advantages of utilizing EOR for your employment in Spain

As the specialized Employer of Record in Spain, the rapid integration of teams stands out as a significant advantage for employers leveraging the services of Spanish Employer of Record. With all our expertise in local employment laws, we ensure swift onboarding, regardless of the employee’s origin. Proficiency is crucial for you while looking to seamlessly integrate new team members into their global workforce.

Spanish Employer of Record manages all compliance issues, ensuring the employment structure aligns with the specific labor laws of Spain. This meticulous approach helps employers avoid legal complications, establishing a smooth and legally sound international workforce.

Cost-effectiveness emerges as a compelling factor for employers opting for an EOR solution, proving more economically viable compared to the complexities and expenses associated with establishing a new entity in a foreign country. This financial advantage becomes particularly evident when relocating or hiring only a single or a few employees in Spain, making an Employer of Record a cost-effective and efficient choice for employers expanding globally.

Employer of Record Spain for effortless global hiring

Spanish Employer of Record is your answer for easy collaboration between your business and professionals in Spain. We are here to assist you at every stage of globally expanding your team, guaranteeing a smooth hiring process. Feel free to contact us with any inquiries. 

Start your journey today and have yourself or your team operational in Spain within days.

Written by

Written by:

María | Spanish Payroll Specialist

As a passionate Payroll Specialist based in the sunny city of Barcelona, she brings years of experience in the payroll industry, specialising in assisting international businesses in smoothly expanding their operations into Spain. Her efforts for helping companies navigate the complexities of Spanish payroll and employment regulations makes her an invaluable resource for HR managers and business development teams. When she's not crunching numbers, you might find her exploring Barcelona's vibrant tapas scene or cheering on her favourite football team, FC Barcelona.

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