Home Office in Spain
Working in Spain for foreign companies without a permanent establishment.
Originally developed in the software and telecommunications sectors, remote work is now widespread across many industries. For many employees, this creates the opportunity to achieve what was previously an unattainable dream: working in Germany while living in Spain. Offer your employees the possibility of working completely legally from Spain without giving up their employment relationship or neglecting the correct payment of taxes and social security contributions.
- The employment contract remains unchanged.
- Without establishing a branch or subsidiary.
- Correct payment of income tax withholdings.
- Social security contributions in Spain.
- Payroll management through our firm.
- Our firm represents the company.
- Digital communication.
- Online file for document exchange.
- Legal & tax advice included.
Below you will find all details regarding this topic and our services. Through the following links you can also directly schedule an appointment for an initial consultation via 
as well as access our complete service agreement through 
.
as well as access our complete service agreement through .
After an initial registration with the Spanish authorities (without creating a permanent establishment), we act as your representative in Spain and take care of social security contributions, payroll processing, payroll accounting and income tax withholdings.
1. Registration of the company with the Spanish authorities
- Preparation of a German-language notarised power of attorney which can be signed by the company's management (employer) before a local notary. Coordination of the sworn translation of the power of attorney. Through the notarised power of attorney, our firm acts as your company's representative in Spain.
- Application and obtaining of the Spanish tax identification number (NIE) for the signing director.
- Application for the Spanish tax identification number (CIF) of the company, without establishing a permanent establishment in Spain, as well as registration of the company with the Spanish Social Security system and application for the corresponding Social Security contribution account number (CCC).
- Obtaining the company's digital certificate.
- Appointment of our firm as administrator and representative of the employer before the Spanish Social Security authorities and the Spanish Ministry of Labour.
- Preparation of the bilingual addendum to the employment contract (German-Spanish) establishing that the work is performed from the employee's residence (Home Office).
- Guidance regarding obtaining the tax identification number (NIE) for employees and submission of the teleworking agreement (Home Office).
- Registration of the employee with Spanish Social Security and registration of the employment contract with the Spanish Ministry of Labour.
2. Employee administration and representation before the authorities
- Receipt of all correspondence from the Spanish authorities by our firm and representation before Social Security and the Tax Agency.
- Monthly German-language payroll processing, payment of Social Security contributions and monthly delivery of payslips to the company and the employee.
- Quarterly submission of income tax withholding returns (Modelo 111) for the payment of employee income tax withholdings and settlement with the Spanish Tax Agency.
- Submission of sick leave notifications to Spanish Social Security and, where applicable, the possibility of direct contact with the employee.
- Possibility of direct contact with the employee.
- Contact in German and continuous telephone advice on relevant matters included.
- Dossier covering all relevant aspects regarding income tax withholdings, social security contributions, secondments, foreign trips, business travel, expenses, etc.
- Handout explaining the Spanish payslip: explanations with a practical example of each item included in a Spanish payroll document.
- Schedule with deadlines and explanations regarding the submission of the information required to prepare payroll.
Additional services:
- Payment through client account: In Spain, Social Security contributions and income tax withholdings can currently only be paid through a Spanish bank account. If the employer does not have a suitable Spanish account, we can make the payments through our client account and send you the corresponding monthly statement for payment by SEPA transfer.
- Travel expenses and allowances: If the employer reimburses the employee for travel expenses and meals, these amounts may generally become subject to income tax withholding if the Spanish exempt limits are exceeded.
- Application and obtaining of the employee's Social Security number. If employees do not yet have a Social Security number (NAF), we can apply for it with the Social Security authorities.
- Preparation of an employment contract under Spanish law, in both German and Spanish. The German employment contract may remain in German. The Home Office contract addendum is already included within the service.
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