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Spain Professional Employer Organization (Spain PEO)

Spain PEO

Article summary

  • Spain PEOs provide comprehensive HR and employment solutions to businesses operating in Spain.
  • PEOs handle administrative tasks such as payroll, benefits, and compliance, allowing companies to focus on core operations.
  • Benefits of a Spain PEO include cost savings, streamlined operations, access to local expertise, and compliance assistance.

The strategic advantages of extending operations into Spain are significant: As the fifth-largest economy in the EU and with a diverse population of approximately 47 million, Spain offers a substantial commercial and consumer market. Its geographical positioning serves as a bridge to Europe, Africa, and Latin America and a well-educated, skilled workforce enhances its appeal.

To hire employees in Spain quickly and cost-effectively, many companies find it beneficial to engage a Spain Professional Employer Organization (Spain PEO). Read more to find out how these expansion services work.

What is a Spain PEO?

Expanding a business to a foreign country can be a complex and challenging endeavor, especially when it comes to navigating local employment laws, managing HR functions, and ensuring compliance with local regulations. This is where a Professional Employer Organization (PEO) can provide valuable support. In Spain, PEOs offer comprehensive HR and employment solutions to help businesses simplify their operations and successfully establish a presence in the Spanish market. 

A Spain PEO acts as an intermediary between an employer and its employees, taking on responsibilities such as payroll administration, benefits management, tax compliance, and legal compliance. By partnering with a PEO, companies can offload these administrative tasks and focus on their core business activities.

To read about the slightly different Spain HR outsourcing solution known as a Spain Employer of Record, check out our Spain EOR guide

How does a Spain PEO work?

When a company engages a Spain PEO, the PEO becomes the co-employer for the company’s employees in Spain. This means that the PEO takes on legal responsibility for employment-related matters, including contracts, payroll, and compliance. However, the client company still maintains control over the day-to-day operations and management of its employees.

The PEO manages all HR-related processes, such as recruitment, onboarding, payroll processing, tax withholdings, benefits administration, and compliance with local employment laws. They ensure that all HR processes are carried out in compliance with Spanish regulations, reducing the risk of legal issues and penalties for the client company. Read more about PEO services in What does PEO stand for?

What are the benefits of a Spain PEO?

Engaging a Spain PEO offers several benefits for companies looking to expand or establish operations in Spain:

  1. Cost savings: By partnering with a PEO, businesses can avoid the significant costs associated with setting up a legal entity, establishing a local HR team, and managing payroll and benefits administration. PEOs leverage their existing infrastructure and economies of scale to provide these services more cost-effectively.
  2. Streamlined operations: PEOs handle all administrative tasks related to HR and employment, allowing companies to focus on their core competencies and strategic objectives. This streamlined approach can improve operational efficiency and help businesses maintain their competitive edge.
  3. Access to local expertise: PEOs have a deep understanding of the local labor laws, regulations, and business practices in Spain. They can provide valuable guidance and support, helping companies navigate the complexities of the Spanish employment landscape and ensuring compliance with all relevant regulations.
  4. Compliance assistance: Spanish labor laws and regulations can be intricate, and non-compliance can result in significant penalties. PEOs stay up-to-date with the latest legal requirements and ensure that companies operate within the boundaries of the law. They handle payroll tax calculations, employee benefits, and other compliance-related tasks, reducing the risk of errors and penalties. They can also often help with Spanish work visas for foreign employees, and digital nomad visas for those working in spain for a foreign employer

What are the disadvantages of a Spain PEO?

Alongside the benefits, it is worth considering the potential downsides of hiring in Spain using a PEO. These include:

  1. Cost: Utilizing a PEO service can be more expensive than managing employees in-house, particularly if your company is large or plans to scale significantly in Spain.
  2. Control: While a PEO takes care of many administrative aspects, it also means you cede a certain level of control over your human resources operations. This could potentially impact your company culture and the level of direct communication and engagement with your employees.
  3. Dependence: There’s a risk of becoming overly reliant on the PEO for important HR functions. If the PEO performs poorly or if the relationship sours, it can disrupt your operations.

Top 5 leading Spain PEOs

Leading Spain PEOs include: 

  1. Safeguard Global: Safeguard Global is a trusted PEO provider with extensive global coverage, including Spain. They offer localized expertise, compliance assistance, and end-to-end HR solutions to help businesses seamlessly expand their operations. Read more about why Safeguard Global could be the right Spain PEO for you in our 2023 Safeguard Global review
  2. Deel: Deel provides a user-friendly platform that streamlines HR processes and compliance management. They offer localized payroll, contractor management, and HR support to simplify international expansion for businesses in Spain. Read more in our 2023 breakdown of Deel’s services and products
  3. Omnipresent: Omnipresent focuses on providing global employment solutions, including PEO services in Spain. Their platform offers a single interface for managing HR, payroll, and compliance, helping businesses scale internationally. For more information on what makes Omnipresent different take a look at our 2023 Omnipresent review
  4. People2.0: People2.0 specializes in providing flexible employment solutions for international businesses. With their PEO services in Spain, they offer tailored solutions, compliance support, and a robust technology platform. For more information, see our 2023 People2.0 Review
  5. Remote: Remote is a PEO platform that offers comprehensive HR, payroll, and compliance services for businesses expanding to Spain. They combine technology-driven solutions with localized expertise, ensuring smooth operations in the Spanish market. To learn more, read our 2023 guide to Remote’s EOR and PEO products

Spain PEOs — choose wisely

Spain PEOs play a vital role in helping businesses expand and establish a presence in Spain. By outsourcing HR and employment-related tasks, companies can focus on their core activities while enjoying benefits such as cost savings, streamlined operations, and access to local expertise. However, it’s important to consider the potential trade-offs, such as reduced control over HR functions and the need to navigate cultural differences.

When selecting a Spain PEO, businesses should evaluate their specific needs, industry requirements, and the level of support required. The top five Spain PEOs mentioned above—Safeguard Global, Deel, Omnipresent, People2.0, and Remote—offer a combination of expertise, technology, global coverage, and tailored solutions, making them excellent choices for businesses seeking comprehensive HR support in Spain.


Yes, Spain PEOs can often assist with local talent acquisition and recruitment. They have access to local networks and can provide guidance on recruitment strategies, job market conditions, and local hiring practices. To find out whether a PEO provides recruitment support in Spain, you will need to contact that company. 

Yes, Spain PEOs cater to businesses of various sizes. Whether you are a small startup or a large multinational corporation, PEOs can adapt their services to meet your specific needs and help you navigate the complexities of the Spanish employment landscape.