Hiring your first employee in Spain: what to register first

Terms used

• IRPF — The IRPF is Spain's personal income tax.
• DNI — The DNI is the national identity card of Spanish citizens.
• Alta — The alta is the registration of a worker with Social Security, which must be done before they start work.
• CCC — The CCC is the employer's Social Security contribution account number, used to register workers and pay contributions.
• TGSS — The TGSS is Spain's Social Security treasury, which registers employers and workers and collects contributions.
• NIF — The NIF is the Spanish tax identification number.
• NIE — The NIE is the identification number for foreigners in Spain.
• RETA — The RETA is the Social Security regime for self-employed people.

Key rules

• Worker registration: The worker must be registered with Social Security before they start, and you can register up to 60 days ahead.
• Contract report: Report the employment contract to the public employment service within 10 working days of the start.
• Employer first: You need your own employer registration and CCC before you can register any worker.
• Penalty: Letting someone work unregistered is a very serious infringement, fined per worker.

The order to follow

Do these four things, in this order, before the first working day:

1. Register as an employer with Social Security and get your contribution account number.
2. Register the worker (alta) with Social Security.
3. Sign the written contract.
4. Report the contract to the public employment service.

The worker must not start until step 2 is done. The timeline below shows the sequence.

Step 1: Register as an employer

You can only register as an employer once your own tax and business registration is in place. You need:

• A tax ID: a company NIF, or your personal NIF or NIE if you are self-employed.
• If you are a company, the company deed and its entry in the commercial registry.
• Registration in the tax agency's census of businesses (Modelo 036 or 037). This is where you declare the start date of your activity.
• If you are self-employed, registration in the RETA.
• The activity code (CNAE) and the address of the workplace.
• If someone acts for a company, proof of their authority.

For online filing you need an electronic certificate or Cl@ve.

Then file the employer registration request with the TGSS. You can do it online with a certificate or Cl@ve, or at a TGSS office with an appointment. Online, it is often processed immediately.

The TGSS gives you a CCC. You need it to register workers and pay contributions. You get one CCC for each province where you have workers.

Step 2: Register the worker (alta)

You must register the worker with Social Security before they start work, and you can do it up to 60 days before the first working day. Registering after the start is an infringement.

You can file through the Sistema RED online with a certificate or Cl@ve, after requesting RED access for your account. Or you can hire a gestoría to file for you. You sign an authorization, and the TGSS links your CCC to them. You stay legally responsible, and you can revoke the authorization at any time.

Step 3: Collect the onboarding documents

Ask the employee for:

• DNI, NIE or passport.
• Social Security number. If they have none, you request one from the TGSS.
• Bank account number (IBAN) for wages.
• The IRPF withholding form (Modelo 145), with family situation, dependants and disability.
• Address and contact details.
• If they come from outside the EU, a valid work and residence authorization.
• Any qualification or health documents the job requires.

Then sign the written contract and give a copy to the workers' legal representatives.

Step 4: Report the contract

You must communicate the employment contract to the public employment service within 10 working days of the start of the employment relationship. You do it online through Contrat@ or your region's employment service system. Contract extensions and conversions must be reported too.

What goes wrong

Employing someone who is not registered before they start is a very serious infringement. The fine is set per worker, and each grade runs into thousands of euros. You can also lose subsidies and have to pay the contributions with surcharges. Other penalties apply in some cases, such as employing a foreign worker without a permit. The labour inspectorate investigates and imposes the fines.

Timeline and deadlines

• Register the worker (alta) with Social Security: up to 60 days before the first working day, and no later than the day work begins

• Start work only once the registration is done: on the first working day

Documents you need

• Tax ID for the employer: a company NIF, or your personal NIF or NIE if you are self-employed.

• Company deed and commercial registry entry, if the employer is a company.

• Registration in the tax agency's census of businesses (Modelo 036 or 037), which declares the date your activity starts.

• Proof of registration in the self-employed regime (RETA), if you are a self-employed employer.

• Proof of authority for the person acting for a company, plus an electronic certificate or Cl@ve for online filing.

• The employee's DNI, NIE or passport.

• The employee's Social Security number. If they have none, you request one from the TGSS.

• The employee's bank account number (IBAN) to pay wages.

• The employee's completed withholding form (Modelo 145) with family situation, dependants and disability.

• A valid work and residence authorization, if the employee is from outside the EU.

• Any qualification or health documents the job requires.

First-hire checklist for a Spanish employer

First-hire checklist

• Register your business with the TGSS (Spanish Social Security) online with a digital certificate or Cl@ve, or at a TGSS office with an appointment, to get your código de cuenta de cotización (CCC), your contribution account number.

• Ask for a separate CCC for each province where you have workers.

• Collect from the new employee their ID (DNI, NIE or passport), Social Security number, bank account (IBAN), address and contact details.

• Ask for a work and residence authorization if the employee is from outside the EU, plus any qualification or health documents the job requires.

• Request a Social Security number from the TGSS if the employee does not have one.

• Set up the standard payslip showing employer and employee details, pay period, earnings, deductions, net pay and contribution bases.

• Give each payslip on paper or electronically, with a signed receipt (recibí), when you pay the salary.

• Set up modelo 111 filing for IRPF withholdings through the tax agency's online office, quarterly by the 20th of April, July and October and by 30 January for the last quarter.

• Choose how you will organise prevention of workplace risks: do it yourself if you qualify, designate the employee, or hire an external prevention service. With one employee you do not need your own prevention service.

• Arrange health surveillance for the employee through a health service, usually an external one.

What to watch out for

• A worker who starts unregistered: Letting someone start work before you register them with Social Security is a very serious infringement. The fine is set per worker, and each grade runs into thousands of euros. You can also lose subsidies and have to pay the contributions with surcharges. Submit the registration before the first working day, and do not let anyone start until it is done.

• Hiring a foreign worker without a permit: Employing a foreign worker without a valid permit can bring separate penalties on top of the registration fine. Ask non-EU employees for their work and residence authorization before they start.

Quick answers for new Spanish employers

Do I need a prevention service if I have only one employee?

No, with one employee you are not required to have a prevention service. You can take on the prevention work yourself if you meet the conditions, designate the employee, or hire an external service.

Can I keep working-time records on paper?

Yes, you can keep the daily time record on paper or digitally, as long as it shows each worker's start and end time. The format is set by collective or company agreement, or by you after consulting the workers' representatives. Keep it for four years and make it available to workers, their representatives and the Labour Inspectorate.