---
title: "Hiring in Spain: employee, autónomo or EOR?"
description: Hire in Spain through your own entity or an EOR. An autónomo who works only for you, on your schedule, can count as an employee, so pick the route first.
image: https://funded.club/hubfs/og_image_funded.png
---

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# Hiring in Spain: employee, autónomo or EOR?

[Ray Gibson](https://funded.club/blog/author/ray-gibson)

 Nov 9, 2026, 10:41:10 PM

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*Updated November 2026*

To hire employees in Spain as a startup, you employ them through your own Spanish entity or through an employer of record (EOR) provider, and register them with Spanish social security before they start. Hiring a full-time first hire as an *autónomo* (self-employed contractor) is common but risky, because someone who works only for you, on your schedule, can be treated as an employee.

That is the decision to settle first. Candidates sometimes suggest the autónomo route themselves, and changing route after the offer means reopening salary, contract and start date at once.

## Why the autónomo route tempts first-time employers

Spanish freelancers register as autónomos, pay their own social security contributions and invoice their customers, so a foreign startup can sign a services agreement with no Spanish payroll.

The problem is what Spaniards call *falso autónomo*, or false self-employment. If the relationship looks like employment in practice, the authorities and the courts can treat it as employment, whatever the contract says. The consequences can include back social security contributions and the person gaining employee rights.

THE FALSE SELF-EMPLOYMENT CHECK

The more of these describe your hire, the more it looks like employment

They work only for you, or almost only for you.

You set their hours, tools and priorities.

They sit in your team rituals and report to your manager.

You supply their laptop, accounts and email address.

They are paid a fixed monthly amount rather than per deliverable.

There is no end date and no defined project.

Labels on the contract matter less than how the relationship works day to day.

A specialist doing a fixed project for several companies can be a real autónomo. Your first full-time engineer usually is not. Our guide on [contractor or full-time for a first hire](https://funded.club/blog/contractor-or-full-time-first-hire) covers the wider trade-off.

## Entity, EOR or contractor in Spain

Once you rule out a disguised employee, the choice is between an EOR and your own company. Many startups start with an EOR and set up an entity if the team grows.

ROUTE 1

Autónomo contract

The person registers as self-employed and invoices you.

Quick to set up, but the risk of reclassification sits with you.

**Fits when:** the work is a defined project and they keep other customers.

ROUTE 2

Employer of record

The EOR provider employs them on a Spanish contract and runs payroll.

You direct the work without a Spanish company.

**Fits when:** you are hiring one to a few people and want to start soon.

ROUTE 3

Your own Spanish entity

Usually a limited company (SL) that employs staff directly.

More set-up and ongoing administration, more control.

**Fits when:** Spain will be a real hub for your team.

Either way, the open-ended contract (*contrato indefinido*) is the norm, since a recent labour reform narrowed the cases where fixed-term contracts can be used. A trial period (*periodo de prueba*) is allowed, within limits set by law and the applicable collective agreement, and it must be written into the contract.

## Collective agreements and regional differences

Spanish employment terms are shaped by collective agreements (*convenios colectivos*), which apply by sector and often by province or region. They can set minimum pay by professional group, working hours, holidays and notice, so two hires in one company can fall under different agreements.

Spanish candidates think in gross annual salary (*salario bruto anual*) and ask how it is paid, because pay is often split into monthly instalments plus extra payments (*pagas extra*), sometimes spread across the year. State both in the offer.

Spain's remote work law requires a written agreement for regular remote work and addresses who covers equipment and costs, so your EOR or entity should put one in place for a home-based hire.

Spain introduced a startup law (*Ley de Startups*) and a digital nomad visa in recent years. Either may be relevant to a young company or an international hire, but check whether and how they apply to you rather than assuming.

## Worked example: a UK startup hires engineers in Barcelona and Madrid

Illustrative. A UK Seed-stage startup wants its first two engineers in Spain, one in Barcelona and one in Madrid. The Barcelona finalist offers to start right away as an autónomo.

| Question | Barcelona engineer | Madrid engineer |
| --- | --- | --- |
| **Employment route** | EOR, after the founders ran the false self-employment check | EOR, same provider |
| **Contract** | Contrato indefinido with a trial period | Contrato indefinido with a trial period |
| **Collective agreement** | Confirmed with the EOR for Catalonia | Confirmed with the EOR for Madrid |
| **Public holidays** | Catalan regional and Barcelona local days | Madrid regional and local days |
| **Remote work** | Written remote work agreement | Written remote work agreement |

The engineer would have worked full time, on the team's sprints, with company equipment, for one company. The founders ticked most boxes on the check and moved both hires to an EOR before sending offers. Both offers stated gross annual salary and payment structure, and the team calendar now shows two sets of public holidays.

Rules change and every hire is different, so confirm the route, agreement and contract with a Spanish employment lawyer, accountant or your EOR provider before you make an offer. Our [guide to hiring developers in Europe](https://funded.club/blog/hire-developers-europe-salary-guide) covers the wider market.

## Where Funded.club fits

We are a fixed-fee recruiting partner for funded startups across North America, Europe and APAC, with a fully remote team, and since 2019 we've helped 500+ startups from Seed to Series D. We run the search, and your EOR provider or Spanish entity handles the employment.

One dedicated recruiter runs each search, with first screened candidates within 7 days and 33 days on average from kick-off to hire. The fee is fixed upfront, averaging 6 to 9% of salary against the 20 to 25% typical of contingency recruiters. If both engineers' salaries fall in the band up to $70,000, that is $4,900 per hire, or $9,800 for the pair. See our [pricing](https://funded.club/pricing).

## Frequently asked questions

### Can I hire my first employee in Spain as an autónomo?

You can contract an autónomo for independent work, but a full-time person who works only for you, on your schedule and in your team, can be treated as an employee under Spanish rules on false self-employment. An employment contract through an EOR or your own entity is safer.

### Do I need a Spanish company to employ someone in Spain?

No. An employer of record (EOR) provider can employ the person on a Spanish contract and run payroll while you direct their work. Your own entity, usually an SL, makes more sense for a larger team.

### Does the same collective agreement apply in Barcelona and Madrid?

Not necessarily. Spanish collective agreements apply by sector and often by province or region, so hires in different cities can fall under different agreements.

Worth a brief chat about your next hire? [Book a free call](https://funded.club/contact-us).

## Hiring after a funding round?

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[See pricing](https://funded.club/pricing) [Book a free call](https://funded.club/contact-us) [Try the Growth Planner](https://funded.club/growth-planner)

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