Understanding Spain’s work permits and immigration policies is crucial for businesses looking to expand their operations or hire foreign talent. Ensuring compliance with local regulations is not just a legal obligation—it’s also key to maintaining smooth onboarding, securing top global talent, and minimising non-compliance risks.

This comprehensive guide gives employers an in-depth understanding of work permits, visa requirements, and broader immigration policies in Spain, along with actionable steps to help you remain compliant and competitive in today’s global market.

Why does understanding Spanish work permits and immigration policies matter?

For any company hiring international employees, understanding the intricacies of Spain’s work permits and immigration policies is essential. Non-compliance can lead to heavy penalties, administrative delays, and potentially reputational damage. With a clear roadmap, employers can:

• Streamline the hiring process for foreign workers.
• Stay ahead of legal obligations and regulatory changes.
• Avoid costly mistakes and ensure long-term workforce stability.

4 key types of work permits and visas in Spain

Spain offers several work permit categories, each tailored to different roles and qualifications. Understanding these options will help employers choose the most suitable pathway for their prospective hires:

Highly Skilled Worker Visa (Ley 14/2013)

Designed for professionals in specialised roles—such as managers, technical experts, or R&D specialists—this visa fast-tracks the process for individuals meeting certain salary or education thresholds. Employers must demonstrate that the position requires a high level of expertise, making this an ideal choice for businesses seeking top talent.

EU Blue Card

This option is ideal for highly qualified non-EU professionals. It allows mobility within the EU and is particularly beneficial for companies looking to hire employees with advanced degrees or significant professional experience. The Blue Card also comes with the advantage of providing employees flexibility to work in other EU countries after a certain period.

Regular Work Permit (Cuenta Ajena)

This permit is the most common for non-EU nationals. Employers must prove that no suitable EU candidates are available for the role, and the permit typically starts with a one-year validity, renewable as long as the employment relationship continues.

Entrepreneur Visa

Companies looking to bring in entrepreneurial talent or launch innovative projects in Spain can leverage this visa. Applicants must demonstrate the economic value of their project, often receiving endorsement from the Unidad de Grandes Empresas (UGE).

What type of visa to choose?

Understanding Spain’s work permit options is crucial for ensuring legal compliance and attracting the right talent. Each type of visa or permit has distinct eligibility criteria and benefits, making it important to match the permit to the specific role and individual qualifications.

If you’re seeking highly specialised or managerial talent, the Highly Skilled Worker Visa offers a streamlined process for qualified professionals. The EU Blue Card is an excellent choice for highly educated, experienced candidates who may need the flexibility to work across Europe.

The Regular Work Permit provides a straightforward pathway for more traditional roles, while the Entrepreneur Visa is ideal for companies focused on innovative projects and entrepreneurial activities.

By carefully evaluating the nature of the position and the employee’s credentials, employers can select the permit that best aligns with their hiring needs and strategic goals.

Employer sponsorship responsibilities

When hiring foreign talent in Spain, companies are required to fulfill specific sponsorship responsibilities to remain compliant with local regulations. These responsibilities include:

1. Demonstrating the necessity of hiring non-EU talent: Employers must prove that no suitable candidate from Spain, the EU, or EEA could fill the position. This often means presenting evidence of recruitment efforts, job advertisements, or a detailed explanation of why a particular skill set is unavailable in the local labour market.
2. Collecting and submitting compliance documentation: Sponsorship involves preparing and submitting a range of documents to the Spanish authorities. Key paperwork includes employment contracts, detailed job descriptions, proof of the employee’s qualifications, and the company’s financial statements. Each document must meet specific standards and be submitted in the correct format.
3. Overseeing work permit renewals: Sponsorship does not end with the initial issuance of a work permit. Employers must monitor expiration dates, collect updated employee documents, and submit renewal applications before permits lapse. Timely action is crucial to avoid compliance issues and ensure uninterrupted work authorisation for the employee.
4. Supporting the employee’s settlement in Spain: Although not legally required, many employers help their foreign workers adjust to life in Spain. This may include finding housing, registering for healthcare, obtaining a tax identification number (NIE), or connecting employees with local services. Such support helps foster a more stable, productive workforce and demonstrates the company’s commitment to its international employees.

By adhering to these responsibilities, employers ensure their hiring practices align with Spanish labour and immigration laws, protecting both the company and the employee from potential legal and administrative challenges.

Legal obligations for companies hiring foreign workers

When bringing foreign employees onboard, employers in Spain must adhere to various legal requirements to maintain compliance and ensure fair treatment for all workers.

Spanish labour laws require that contracts for non-EU workers include specific terms and conditions. Employers must clearly outline salary, working hours, probationary periods, and termination procedures. By doing so, they meet legal obligations and create a transparent employment agreement that sets proper expectations for both parties.

All employees, regardless of their nationality, must be enrolled in Spain’s social security system (Seguridad Social). This registration ensures foreign employees access benefits like healthcare, unemployment insurance, and pensions. Employers are responsible for handling this process and submitting the necessary contributions on behalf of their workers.

Foreign employees are entitled to the same rights, benefits, and working conditions as Spanish nationals. Employers must follow the guidelines established in the Estatuto de los Trabajadores, which means offering equal pay for equal work, ensuring fair treatment, and maintaining a safe and respectful work environment.

In summary, companies hiring foreign employees in Spain must go beyond simply offering a job. They must draft thorough employment contracts, register workers with social security, and ensure equal treatment under Spanish labour law.

By carefully following these legal requirements, employers can create a positive, compliant work environment that benefits both the company and its international workforce.

Social security and tax contributions for foreign employees

Employers play a pivotal role in ensuring that all required contributions and taxes are properly handled:

• Social security contributions: Both employers and employees contribute to Spain’s social security system, which covers healthcare, pensions, unemployment benefits, and more.
• Income tax withholding (IRPF): Employers must calculate and remit income tax on behalf of their employees. The rates depend on salary levels and individual circumstances, and timely submissions are essential to avoid penalties.
• Double taxation agreements: For foreign workers, Spain’s tax treaties with other countries help prevent double taxation. Employers should be familiar with these agreements to ensure that their employees’ tax obligations are clear and compliant.

Compliance challenges for employers

Learning Spain’s work permit and immigration landscape isn’t always straightforward and employers frequently encounter issues. Spain’s visa and permit processes often involve multiple government agencies, including the Ministry of Labour and local consulates, leading to lengthy processing times.

Immigration policies and labour laws can change frequently, making it difficult for companies to stay updated. Employing foreign workers as independent contractors instead of employees can trigger legal disputes and penalties if the arrangement doesn’t comply with Spanish regulations.

Your step-by-step guide to supporting an employee’s work permit process

As an employer, you play a key role in ensuring a smooth application for your international hires. Here’s how you can support your employees through each stage:

• Determine the appropriate visa category: Identify which permit applies to the role. For highly skilled positions, the EU Blue Card or Highly Skilled Worker visa may be suitable. For non-EU employees with a standard contract, the Cuenta Ajena permit is typically required.
• Assist with documentation: Provide a formal job offer or contract, proof of financial stability (if needed), and company registration details. Employees may also require health insurance, a clean criminal record certificate, and degree accreditation, depending on their nationality.
• Facilitate the application process: Non-EU candidates must apply through a Spanish consulate in their home country. In some cases (such as a switch from a student visa), the application may be processed from within Spain. Employers may need to submit supporting documents to Spanish labour authorities.
• Cover fees and track progress: Some companies reimburse visa costs as part of their relocation support. Ensure your HR or legal team keeps records of application receipts and follows up on progress.
• Ensure compliance upon arrival: Once the visa is approved and the employee arrives, they must obtain their Número de Identidad de Extranjero (NIE) and register at the local town hall (Empadronamiento).

How a Spanish Employer of Record can help?

A Spanish Employer of Record (EOR) offers a practical solution for companies lacking a local legal entity in Spain. An EOR acts as the official employer on record while the original company retains control over day-to-day activities.

Key benefits of an EOR include:

• Local compliance expertise: The EOR ensures that all employment contracts, payroll, and tax filings meet Spanish legal standards.
• Simplified onboarding: Instead of setting up a local branch or handling the permit process alone, the EOR handles all administrative and legal aspects, allowing companies to onboard talent quickly and efficiently.
• Risk mitigation: By ensuring that employees are classified correctly and that all contributions are made on time, an EOR minimises the risk of fines, audits, and legal complications.

For instance, Gabrielle, a marketing consultant from Canada, secured a job opportunity with a Barcelona-based startup. After struggling to interpret Spanish work permit rules and meet tight deadlines, she enlisted the help of an Employer of Record. The EOR guided her through the visa application, ensured her contract met Spanish labour standards, and handled payroll compliance. Within a couple of months, Gabrielle landed in Barcelona, ready to start her new chapter with peace of mind.

Latest changes in Spain’s immigration policies

Staying current with recent updates is crucial for employers. Recent developments include:

• Digital Nomad Visa: A new pathway for remote workers that allows non-EU citizens to live and work in Spain for a foreign employer, simplifying the process for certain professional categories.
• Increased scrutiny on high-skilled worker applications: Employers need to provide more robust evidence of job necessity and salary thresholds.
• Enhanced penalties for non-compliance: Stricter enforcement measures mean that companies must be more vigilant in meeting all labour and immigration requirements.

Mastering work permits and immigration compliance in Spain

Understanding Spain’s work permit and immigration policies requires a clear grasp of legal obligations, compliance processes, and regulatory updates. As an employer, it’s essential to determine the right visa for your international hires, ensure all paperwork meets local requirements, and stay ahead of policy changes that may impact renewals or contract terms.

Partnering with an Employer of Record can simplify complexities—such as financial thresholds and labour law compliance—so you can focus on building a diverse, globally competitive team. Contact us to ensure a smooth, compliant hiring process for your international talent.

This article was published in April 2024 and updated in February 2025.