Understanding Work Culture In Spain: A Comprehensive Overview With 15 Best Tips

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Gino Peters

Written By:

Gino Peters

Reviewed By: Belinda E.

May 17, 2026 2:44 am

Category Tag: News

The rise of remote work made international expansion much easier in recent years, but hiring abroad still comes with legal and administrative complexity, as every country has its own labour laws and payroll rules that must be followed. In addition, not many companies can open a new entity in every new market that they are expanding into. That is when the Employer of Record (EOR) solution comes in handy.

The EOR serves as the legal employer on paper, while the client company manages important activities related to the employees responsibilities and performance.

In this guide we will cover what an employer of record is, how it works in detail, how much it can cost and which business should consider an EOR solution.

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is a third party service provider that legally employs a person on behalf of another company in the country where the employee officially resides. As an official employer the responsibilities of EOR include issuance of an employment contract, processing payroll and withholding taxes and necessary social security contributions, as well as preparation of offboarding documents or any documentation that need to be signed by the employer. In addition, EOR ensures the compliance with local labour laws and serves as a first point of contact for any legal disputes.

The client company that hired the employee through an EOR also has a list of responsibilities. As an Employer of Record does not have the visibility on operational activities behind the scenes a client company needs to provide direction and ensure proper team integration.

In simple terms, the EOR provider acts as a legal employer in the country of the employee’s residence, while the client company takes on day-to-day manager work.

Responsibility	Employer of Record (EOR)	Client Company
Employment contracts & any other official documentation
Payroll processing
Income tax & social security contributions
Compliance with local labour laws
Statutory benefits administration
Managing daily work and projects
Setting goals and performance expectations
Providing equipment and tools
Leading the employee’s team and workflow

Employer of Record solutions gain more and more popularity in the field of global expansion as they allow businesses to hire best candidates fast and easy while staying compliant with local employment regulations. More information about EOR service are available if you would like to understand more.

EOR Meaning

The term “EOR” is the abbreviation for Employer of Record.

Employer in this instance stands for the company that hires the employee and takes on duties related to it, such as onboarding and offboarding process, payment of wages and compliance with other legal requirements.

“Record” from the EOR perspective refers to official registration with government authorities. The name of the EOR provider is stated in all payslips and tax filings, and should also be listed by the employee in any documents where employer must be stated, such as mortgage or loan applications.

One might ask a question of why this legal structure exists. As it is not possible to provide an employment contract directly to a person that legally resides in another country, the business expanding abroad typically needs to establish a local entity. That involves legal registration, arrangement of local bank accounts and organisation of payroll structure, as well as compliance with local law.

EOR allows to simplify the global hiring and reduce administrative burden through their existing legal entity.

There are some other hiring models that can be confused with EOR.

EOR and PEO

Many sources online refer to EOR as “international PEO”, which may create confusion as these models have 1 important difference.

A Professional Employer Organisation (PEO) serves as a co-employer of a client company. In other words, a business must already have an established entity in the country. The hiring tasks are, therefore, shared between 2 companies, while legal liability stays only with the client company. In the EOR model all legal risks are being taken by the official employer. Read more about the difference between PEO and EOR here.

EOR and staffing agency

Staffing companies mainly provide assistance for short-term projects by providing temporary workers. If the client wishes to employ a person for a longer time, EOR approach must be chosen.

EOR and contractor model

Contractor agreements assume the involvement of independent workers rather than employees. This model is also often used for temporary, project-based assignments. It is important to remember that there is a big misclassification risk between a contractor and an employee in the company which can lead to potential legal issues. An EOR ensures that employment is legally compliant with local labour law.

How does an Employer of Record work?

While it may sound complicated at first, a process behind the employer of record model is relatively straightforward.

The operating company selects a candidate

The client company recruits the employee they want to hire in another country

The EOR becomes the legal employer & local employment contract is issued

The Employer of Record uses its local legal entity to prepare and issue an employment contract that complies with labour law of the country where the employee is based. Depending on case-by- case situation, the work visa might need to be secured beforehand. Our company provides immigration services, more details can be found here.

Payroll and taxes are managed

The EOR takes on recurring responsibilities related to a payroll and ensures correct processing of income tax, social security contributions etc

Benefits are administered

Paid leave, sick leave, pension contributions and any other statutory benefits are being managed by the EOR.

Ongoing compliance and HR support

It is the responsibility of the EOR to monitor changes in local labour law and ensure ongoing compliance.

Example:

Imagine a UK-based tech company found a perfect candidate in Germany for a position of a software developer.

Instead of going through the administrative burden of opening a legal entity in Germany, the company chooses to work with an Employer of Record. The EOR hires the developer under a German employment contract and manages payroll and taxes. At the same time the UK company welcomes the new employee in the team and manages the daily work of a developer.

What services does an Employer of Record provide?

The Employer of Record does more than just providing an employment contract to the employee. Typically a wide range of HR and compliance services is included in the EOR offer. For example, read about the services included in our EOR package here.

Employment and HR administration

Locally compliant employment contracts and support with other documents requested by authorities
Employee onboarding
Employee record management. For example, control over PTO

Payroll and tax management

Regular payroll processing
Tax withholding and reporting of social security contributions with authorities
Payslip generation and creation of annual wage tax certificates

Benefits administration

Management of statutory benefits
Pension contributions (where required)
Support with benefits such as maternity leave allowance, sick leave allowance etc

Compliance and risk management

Insuring compliance with local labour law
Management of onboarding and offboarding processes
Representation in difficult legal and court cases

Additional services:

Some EOR providers ( such as ThisWorks EOR Services) provide additional services such as:

Work permit and dependent visa support
Background checks
Relocation support
Value added services: support with housing, company car, banking, etc ( depending on the country).

This vast list of services allows businesses to manage international teams, while staying compliant and avoiding complex local employment administration.

Benefits of using an EOR service

There are multiple advantages the businesses can get from working with an Employer of Record provider.

Faster global hiring

Setting up a new entity can take up to several months. With an EOR the hiring process can take several days.

Reduced compliance risk

A trustworthy EOR provider ensures the compliance with all local regulations. As the labour law varies greatly between countries, having a knowledgeable party to rely on can make a big difference.

Lower expansion costs

Establishment of a new entity is not only a time-consuming process, but also costly. With EOR services these costs can be avoided.

Access to global talent

The location of a remote candidate is not a problem if the company uses Employer of Record services. In other words, the best candidate for specific business purposes can be chosen.

Scalable hiring model

EOR services are ideal for organisations that want to scale international hiring quickly. They are particularly useful in the following situations:

Remote-first teams and organisations
Companies testing new markets abroad
Startups expanding internationally

How to choose the right Employer of Record

Choosing between several EOR providers is important, as it influences not only compliance, but also employee experience for new hires and how your company is perceived on the job market.

Here are some important things to keep in mind when deciding on your EOR partner:

Geographic coverage

Make sure that EOR provider can cover the country where you want to expand globally. Read about our EOR coverage here.

Pricing transparency

Check that EOR provider does not have any hidden costs and the pricing is clearly outlined in your MSA.

Compliance expertise

A strong EOR provider should have a team of experienced local HR specialists who understands all in and outs of a national labour law.

In-house vs partner model

Some EOR providers rely on their third-party partners, while others manage employment directly through their own local entities.

Customer support

It is important to find a EOR partner that helps with any questions or concerns in a quick and professional manner. That can be crucial when dealing with employee offboarding or any legal disputes.

Warning signs

Understanding the importance of choosing a right party, your company should be cautious of providers that lack local expertise and cannot give clear answers to your labour law questions. In addition, companies with slow response times can prove to be unreliable in critical situations. Furthermore, providers with complex pricing models with many hidden fees can create a lack of cost transparency and result in unforeseen expenses.

By selecting a provider with strong expertise in local labour law and reliable support from dedicated teams, your company can ensure a smooth international growth. Learn why companies choose ThisWorks as their EOR partner.

How much does an employer of record cost

The vast coverage of services the employer of record provides makes many businesses ask how much an EOR costs.

Pricing models vary greatly on the provider and the country of coverage, but most EORs use one or more of the following structures.

Flat monthly fee per employee.

The EOR provider charges a fixed monthly fee for each employee they have on the payroll from the client.

Percentage of salary

While not being a popular approach, some EOR providers charge a percentage of the employee’s salary, typically ranging between 5%-15%.

Setup fees

Some providers charge onboarding or offboarding fee for each employee.

The fee that the business needs to pay to an EOR provider also depend on the location of a service. Local labour law complexity of some countries can influence the fee. In addition, some countries have specific statutory benefits and payroll administration requirements. Furthermore, employee headcount in the specific location can influence the fee.

EOR vs setting up a legal entity

To establish a new entity the organisations needs to go through legal and tax registration. In addition, accounting support and ongoing compliance costs such as the fees for local labour lawyers can make setting up a legal entity significantly more expensive.

An EOR allows companies to expand globally without these upfront investments.

EOR vs hiring contractors

Some businesses decide to hire international workers as contractors. However, this approach can often lead to a misclassification risk, which can cause legal and tax liabilities.

A professional EOR provider ensures that the new starters are compliantly onboarded under local employment regulations.

EOR FAQs

Is an EOR the same as a PEO?

No. PEO model assumes co-employment and requires the business to already have established local entity, while EOR employs new talents through its own entity only.

Can an EOR hire contractors?

While some EOR providers can support hiring contractors, it is important to remember that main function of EOR is the employment of full-time workers legally in a country. A risk of misclassification between EOR and contractor should be also considered carefully.

Is an employer of record legal?

Yes, when established and structured properly, Employer of Record entities are legal and widely used for international expansion by many companies.

When should you use an EOR?

The most common reason for using EOR include:

Hiring employees located in another countries remotely
Testing new markets before establishing an entity
Expanding internationally

Can you switch from EOR to your own entity?

Yes. Many companies initially hire through an EOR for the ease and speed of expansion and later transition employees to own legal entities upon their establishment. It is important to remember that some countries require specific procedure to be followed in such a scenario.

Get in touch with ThisWorks

Expanding your team globally does not need to be long and administratively complex.

With the use of Employer of Record the businesses can have access to the best talent from around the world while ensuring full compliance with local labour laws.

ThisWorks can support your global expansion with our compliant Employer of Record services.

Contact our team to find our how we can help your international team glow fast and compliantly!

Exploring The Unique Work Culture In Spain: Traditions, Etiquette, and Balance

Spain has an interesting work culture. It blends historic traditions with a modern business method. If you want to succeed as an employee or business owner in Spain, it’s important to understand this unique mix. Spain puts a high value on relationships, not just business deals. People like to get to know you before diving into work talks. Spaniards also have a unique communication style and a refreshing view of work-life balance.

Understanding these aspects will help you build trust, work smoothly with colleagues, and truly enjoy your working life in Spain. Moreover, it will help you in adapting to the Spanish Workplace. Let’s talk about the major components that you need to know about the work culture in Spain.

Work Schedules: Fluidity & The Siesta

In Spain, the traditional 9-to-5 workday isn’t always the rule. Work schedules have a sense of flexibility that might surprise newbies. Understanding this unique rhythm is important for a smooth move into the Spanish workplace and adapting to Spanish work culture. Expect a different approach to working hours in Spain, changing your daily routine.

Flexible Time

Don’t be surprised by late starting times in the morning. The workday often runs later into the evening to compensate. This flexibility allows for personal errands or meetings during traditional working hours in Spain. However, it’s important to be punctual and reliable with your schedule, showing respect for Spanish business etiquette.

Spanish Siesta

The famous siesta, a noon break, is still a part of life in smaller Spanish towns. But, it’s becoming less popular in bustling cities like Madrid or Barcelona. Where it exists, the siesta can offer a chance to rest and recharge during the afternoon. Spanish siesta impacts productivity and boosts the workers for the rest of the day.

Late Dinners

In Spain, dinnertime happens much later than in many other places. These late meals are often a blend of both work and social time. It’s a chance to talk business in a relaxed setting, get to know colleagues on a more personal level, and experience unique Spanish negotiation styles. This focus on relationship building adds to the distinct work-life balance in Spain.

Relationship-Centric Approach: The Heart of Spanish Business

In Spain, relationships are the cornerstone upon which great business ventures are built. The concept of ‘personalismo’ places immense value on building trust and genuine rapport before diving headfirst into business transactions. This approach might feel refreshingly different from cultures where a strictly transactional mindset dominates.

Informal Networking

Informal interactions are important in Spanish business culture. Coffee breaks, lunches, or company social events offer a relaxed atmosphere for getting to know colleagues and possible partners on a personal level. Spaniards value friendly conversation and genuine interest in their lives outside the office walls. Embrace these chances to connect beyond spreadsheets and agendas.

Conversation Starters

Showing a true interest in family, sports (particularly football!), or local culture gives a terrific method to break the ice and develop connections. Spaniards are proud of their past, customs, and regional identities, and they like sharing their enthusiasm with others. While building rapport, it’s wise to steer clear of potentially sensitive issues, particularly in early interactions. Focus on comfortable, positive, and dynamic communication.

Patience and Trust Time

Cultivating strong relationships in Spanish business settings takes time and a sincere investment. Prioritize getting to know people on a personal level and showcasing your trustworthiness and reliability. Once a solid foundation of trust is formed, business discussions and collaborations will naturally run with greater ease, leading to more enduring and mutually beneficial partnerships.

Hierarchy, Formality, & Etiquette: Finding the Balance

While Spanish workplaces often keep a defined hierarchical structure, valuing seniority, and positions of power, this doesn’t translate to a rigid or unwelcoming atmosphere. Expect a mix of warmth and friendliness alongside traditional formalities. Understanding this balance is key to handling workplace interactions with confidence.

Respectful Titles

Initially, it’s wise and polite to address peers using professional titles and their surnames (Señor for men, Señora for women), followed by their last name. This shows respect for their position and experience. As relationships develop and greater familiarity is established, a transition to first names is normal. However, it’s always polite to allow your Spanish colleagues to take the lead and start this shift. You can read more here about the greeting culture in Spain.

Greetings Set the Tone

A firm handshake is the usual professional greeting in Spain, regardless of gender. For women, once a closer connection and level of comfort are established, the double-kiss greeting (air kisses, one on each cheek) may become appropriate. It’s best to watch how your Spanish colleagues greet each other and mirror their customs to avoid any awkwardness.

Bartering Business Cards

Exchanging business cards is a valued practice in Spain. Take a moment to examine the card you receive – this shows real interest and respect for the person. Always have your own business cards easily accessible and give them with both hands as a gesture of professionalism and courtesy. This small detail can make a significant positive impression on your Spanish business colleagues.

Communication Style in Spain: Direct, Expressive, & Passionate

– Straightforward and sincere: In Spanish business communication, expect directness and honesty. This can be refreshing for those accustomed to more indirect styles. Balance this directness with diplomacy to maintain positive relationships and show respect for Spanish business etiquette.

– Beyond words: Pay close attention to nonverbal cues, body language, gestures, and tone of voice. These add important context and nuance to conversations. Spaniards are often expressive and passionate in their communication style, adding energy to the interaction.

– Debates with purpose: Don’t be surprised by passionate discussions and healthy debates in the workplace. This is viewed as a way to explore different perspectives openly and find the best collaborative outcomes. Embrace these exchanges as part of the dynamic within Spanish work culture.

How to adapt to the Spanish Workplace?

Adapting to the Spanish workplace takes time and effort, but the benefits are immense. By embracing the language, culture, and unique rhythms of Spanish business life, you’ll open a world of professional and personal growth. Spanish work setting includes embracing the cultural nuances and making a conscious effort to integrate. Here are some important strategies for a smooth transition:

The Language Advantage

Learning Spanish, even at a basic level, gives you a major advantage. It shows respect for Spanish culture and makes communication with colleagues much easier. Consider enrolling in language classes, utilizing language learning apps, or finding a language swap partner for conversational practice.

Observing Your Workplace

Take cues from how your Spanish friends dress. This will give you a good sense of the specific expectations within your business. Remember, investing in a few key business wardrobe pieces will go a long way in ensuring you always look the part.

Projecting Confidence

Dressing properly in Spain isn’t just about fitting in; it’s about feeling confident and capable. When you look your best, it translates into your demeanor and relationships within the workplace. Embrace the chance to present a polished, self-assured image as you navigate the Spanish business world.

Work to live, not live to work

In Spain, work is seen as a way to support a rich and fulfilling personal life. This emphasis on work-life balance in Spain means prioritizing family, friends, and leisure interests outside of work. Also, Spaniards enjoy generous vacation allowances and numerous public holidays and vacations in Spain. They disconnect from work outside of standard working hours in Spain. This gives dedicated time to recharge, socialize, and enjoy life’s simple pleasures.

The Art of Negotiation: Patience and Relationship Building

Spanish negotiation styles vary from the fast-paced, “get down to business” approach seen in some cultures. In Spain, building trust and understanding takes priority over rushing to close a deal. Spaniards prefer to get to know possible business partners before diving into hard negotiations. Focus on building rapport through informal conversation and showing a genuine interest in them. Remember, they’re investing in you as a person, not just your plan.

Understanding the other side

Take time to truly understand the viewpoint of your Spanish counterparts. What are their objectives, concerns, and ultimate goals? Active listening and respectful questions will help you uncover this important information.

Mutual winning is preferred

Be prepared for compromise and flexibility within Spanish bargaining styles. Finding mutually helpful solutions is often valued over one party “winning” at all costs. Look for creative solutions that leave both sides feeling satisfied with the result.

Patience is important

Negotiations in Spain can take longer than you might be accustomed to. Patience is important – rushing the process might jeopardize the entire deal. Embrace the focus on building relationships as an investment in future successful partnerships.

15 Best Tips for Adapting to the Spanish Workplace

Spanish work culture takes a willingness to adapt and embrace the unique rhythms of professional life. Here are 15 essential tips to help you not only integrate but grow within a Spanish workplace:

Embrace flexibility. Adapt to flexible plans while respecting deadlines.
Invest in relationships. Prioritize informal interactions and connection building.
Learn simple Spanish. Demonstrate cultural respect and ease conversation.
Observe formal manners. Use titles initially, moving to first names later.
Master the two-kiss welcome. Follow the lead of Spanish peers.
Accept longer workdays. Enjoy the lively social life outside of work.
Be prepared for direct criticism. Focus on the idea, not the delivery.
Appreciate animated talks. See them as enthusiastic problem-solving.
Respect the siesta (where appropriate). Adjust your workday properly.
Enjoy generous trips. Fully engage yourself in Spanish life.
Network strategically. Attend business events and social gatherings.
Dress for success. Maintain a polished, professional look.
Don’t rush the process. Focus on building long-term partnerships.
Maintain an upbeat attitude. Be fluid and open-minded.
Find a guide. Seek advice from experienced colleagues.

Frequently Asked Questions

What are the typical working hours in Spain, and how do they affect work-life balance?

In Spain, a normal workday starts a little late and ends around 7 pm. There is a long break for lunch in the afternoon, which usually lasts two hours. The Spanish believe in having a good balance between work and life, so this plan includes time for rest and family meals. But working long hours can make the workday longer, which can cut into personal time in the nights.

How is the professional hierarchy structured in Spanish workplaces?

There is usually a clear hierarchy at work in Spain, and choices are usually made at the top. Respect for leadership is important, but teams should also feel like families. Managers are easy to get in touch with, and while they make the final decisions, everyone’s input is respected. This shows a balance between formality and personal connection.

What are the key cultural norms to be aware of in Spanish business settings?

Personal ties and trust are very important in Spanish business culture. Meetings in person are better than talking on the phone, and a kiss is the standard way to greet someone. Building a rapport before discussing business issues is important, and punctuality, while valued, can be more flexible than in more rigid business cultures.

How does the concept of ‘siesta’ influence the workday in Spain?

The traditional “siesta,” a break in the early afternoon, is becoming less popular in cities and workplaces, but it still affects the longer lunch breaks that people in Spain take. Even though not all businesses are closed during siesta, the idea comes from the Spanish belief that you should take time to rest and eat during the day.

What should I expect in terms of communication and negotiation styles in Spanish businesses?

Communication in Spanish businesses is often direct but polite, with a large focus on non-verbal cues. Negotiations can be lengthy, as making a personal connection is considered as important as the business at hand. It’s normal to talk matters over meals, blending social and professional interactions.

How does the Spanish approach to holidays and vacations impact the work culture?

Spain is generous with holidays and vacation time, showing a strong emphasis on family and leisure. The abundance of public holidays, paired with a minimum of 22 vacation days, supports a work culture that values time off. This method fosters a relaxed atmosphere but requires planning to accommodate the frequent breaks in the business schedule.