¡Hello, HR Leader! 🌟 Navigating the HR world can be quite challenging, ¿right? In this Blog you can learn more about the intrincancies of hiring in Spain.
Do you want to hire an employee to work remotely from another country without opening a subsidiary? Companies are increasingly looking for employees in other countries due to the internationalisation of business, globalisation and the possibility of working remotely. In these cases you will have to comply with the labour and tax laws and social security obligations of the country where the employee resides. If you do not want to open an office in that country, you have another option other than the so-called Employer of Record, which in Spain can be considered an illegal transfer of workers if it is not done through a duly authorised temporary employment agency (ETT). We tell you what it consists of, what advantages it provides and what functions it performs.
As a foreign company wishing to hire a person on a telecommuting basis, you may not want to assume the costs and obligations of setting up a subsidiary or establishment in Spain. This need not be necessary if it is done through a foreign entity with a NIF in Spain, for the sole purpose of hiring resident employees.
The use of the figure of the foreign entity with a TIN gives companies that want to expand internationally the opportunity to have more time to assess whether such expansion is necessary and what is the best way to carry it out.
This legal alternative to the EOR also allows the company to have a worker hired directly with its non-resident TIN without assuming more obligations than those derived from such hiring before the Tax Agency and Social Security. In other words, for example, it will not be necessary to file Corporate Tax in Spain.
For this purpose, it is always advisable to have a local partner such as OBN&, who will assist the foreign company in legal, labour and tax matters in Spain, as well as preparing its payroll, payments to authorities, etc.
In short, the company saves time and money compared to the alternative of opening a branch or subsidiary in the foreign country and the barriers to entry into new markets are reduced, as well as the risks of legal non-compliance.
The procedure is very simple and registration with the Spanish authorities can be obtained fairly quickly.
To do this, it is necessary to have various documents proving the existence and details of the company and the passport of its representative, both of which must be apostilled.
Once we have the different documents, it is necessary to obtain the tax identification number (NIF) as a foreigner before the tax authorities, both for the representative and for the company.
As a last step, the company's Digital Certificate is obtained in order to continue with all the procedures before the Spanish authorities and the company is registered with the Social Security, so that, from there, the resident worker can be hired without any further complications.
If you want to learn more about our services, we invite you to explore our webpage: https://global.obn.es/legal-registration-in-spain