Spain remains one of Europe’s most attractive destinations for doing business, combining strategic access to EU markets, a skilled workforce, and competitive infrastructure. However, setting up a company here involves navigating complex legal, tax, and employment requirements.

This guide offers a comprehensive overview of the main legal obligations you’ll face when opening or expanding a business in Spain.

At Plan B Legal, we help entrepreneurs, startups, and international corporations launch, operate, and scale legally compliant businesses in Spain. With deep expertise in Spanish labor, corporate, and tax law, we provide bilingual legal and operational support from our offices in Barcelona and Madrid.

A. Mandatory Employer Policies

When employing staff in Spain, companies must adopt a series of written policies to comply with labor law. The key requirements include:

• Occupational Health & Safety Policy – covering safety, hygiene, ergonomics, psychosocial risks, and occupational medicine. 
• Anti-Harassment Policy – addressing workplace and sexual harassment, with internal reporting mechanisms. 
• Equality Plan (for companies with 50+ employees) – ensuring gender equality, supported by a remuneration audit and reviewed every four years. 
• Salary Register – documenting average salaries by gender, professional category, and benefits. 
• Employee Time Tracking System – recording start/end times for all employees to monitor overtime. 

In addition, companies must:

• Use indefinite employment contracts as the default option. 
• Comply with remote work laws (Royal Decree-Law 28/2020) for hybrid or home-based workers. 
• Implement a whistleblowing channel under Law 2/2023 if employing 50+ people. 

Beyond statutory requirements, best-practice policies (e.g. recruitment, conduct, IT usage, dress code, or anti-fraud) help strengthen compliance and culture.
Many businesses consolidate these policies in a Spanish employee handbook, tailored to company operations.

B. Employee Training Obligations

Spanish law requires employers to ensure:

• Basic health and safety training for all workers. 
• Specialized training for handling hazardous materials. 
• Instruction on anti-harassment and whistleblowing procedures. 
• Awareness programs on gender equality and non-discrimination, when applicable. 

At Plan B Legal, we can adapt training documentation and delivery methods to meet your sector’s needs.

C. Employment Contracts

Written employment contracts are highly recommended, and often legally required, to clarify working conditions, rights, and responsibilities.
Improperly structured temporary contracts can automatically convert to permanent roles, resulting in fines.

Our team provides custom employment contract templates aligned with Spanish law and your specific company setup.

Incorporating a business in Spain involves several administrative steps. Below is a simplified checklist:

1. Define your business plan – activity, viability, financing, and market strategy. 
2. Select your legal structure – e.g., Sociedad Limitada (SL) for limited liability. 
3. Fulfill registration requirements for your chosen structure. 
4. Choose jurisdiction and register with the Commercial Registry. 
5. Draft articles of incorporation and company by-laws. 
6. Establish a registered office and appoint directors. 
7. Register with the Social Security system. 
8. Obtain a Tax Identification Number (NIF) from the Spanish Tax Agency (AEAT). 
9. Register for VAT and other tax obligations. 
10. Apply for activity licenses and, if applicable, sector-specific permits. 
11. Set up employment contracts and payroll systems. 

Plan B Legal collaborates with trusted local partners (notaries, accountants, and labor advisors) to ensure your incorporation process is smooth, compliant, and efficient.

Most foreign and local companies in Spain outsource payroll and benefits administration to specialized providers. This ensures accuracy in:

• Payroll deductions and social security contributions. 
• Employee benefit management. 
• Monthly tax reporting and filings. 

Plan B Legal offers integrated payroll and HR compliance services, tailored to the size and needs of your organization.

• Full-service support – from incorporation to employment law, tax, and compliance. 
• Bilingual expertise – English, Spanish, Russian, Romanian, and German. 
• Digital-first approach – simplifying legal processes for international clients.
• Transparent pricing – with no hidden fees.

Starting a business in Spain can be an exciting opportunity, but it requires the right legal guidance. At Plan B Legal, we make the process clear, compliant, and efficient, so you can focus on growing your business.