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Employ Candidates Compliantly in Spain

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  1. Overview: Spain
  2. Global HR Compliance
  3. Global PEO and Payroll
  4. Work Permit for Hiring Expats via PEO
  5. Expand without a company set up
  6. Contractor vs. Employee: Which Is Better?
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Convert Independent Contractors to Employees in Spain

Find out how you can make an informed decision on whether you should engage and pay employees or independent contractors using our free ‘Employee vs. Independent Contractor’ Checklist.

Designed to be used by companies engaging remote workforce in Spain, the checklist is the best way to define why and in what cases companies should onboard new hires or convert existing contractors/freelancers into employees without missing any crucial aspects.


What Our Clients Are Saying?

I’d like to share my experience dealing with Acumen International company.

Speed & responsiveness: Very prompt in response from my first enquiry about converting contractors into employees to follow up questions.

Completeness of information: I like how detailed the estimates and the transparency makes us feel more confident in knowing where the money goes to.

Overall experience: I am pleased and impressed with how fast they respond to my enquiries. We can trust the company to employ the contractors we want to keep.

Quah Shen Dee,
People Success Officer

I always found Acumen International very supportive, professional and helpful. They pay salary on time and are always ready to sort out any issues that arise.

I must admit I truly enjoy my time as an Acumen International employee and feel like they care about me as an individual. I have my own dedicated manager that provides me with detailed explanations when it’s needed. Payments are always prompt and the entire team does its best to respond to any of my questions.

I highly recommend Acumen International to anyone that requires their services.

Andrew Yanchurevich,

Why Convert Independent Contractors to Employees in Spain?

Business owners are often tempted to save on labor costs and taxes by hiring independent contractors or freelancers. They are under the impression that they can avoid having to pay taxes, insurance, and benefits. The reality is that it’s almost always more expensive in the long run because once you have to let go of a great worker, you have to spend time and money recruiting and training a replacement. 

An even bigger issue is that by not treating independent contractors as employees, you’re not giving them a stable work environment. They may work for several different companies at once. There’s no continuity in their workday, which can lead to a lack of job satisfaction, another liability for employers. 

As an employer, there are several reasons why you should convert your independent contractors into full-time employees. It shows that you value your top talent. Independent contractors might feel like second-class citizens if you only hire them part-time or as independent contractors.

1. Independent Contractors Demonstrate a Good Work Ethic

Independent Contractors have a good work ethic and reliability in their job. They know the value of their time and services and don’t waste any time with unproductive tasks that do not add value to their output. This is excellent for any company concerned about maximizing its productivity.

2. Independent Contractors Have Unique Expertise

They are smart. Independent contractors are highly skilled and knowledgeable professionals with years of experience under their belts. They bring a wealth of wisdom and insight as team members. They have unique capabilities that can help your business succeed in new ways.  Not just anyone can be an independent contractor— they must have skills and expertise that are unique and difficult to find elsewhere. 

Independent Contractors understand that their work is essential —  it’s more than just a job for them; it’s something they take pride in doing well. They have a sense of ownership regarding their role in the company, which means they’ll never shirk doing meticulous work. If there’s ever an issue with quality or delivery, you won’t see them making excuses.

3. Independent Contractors Are Loyal and Passionate

Independent contractors take great pride in their work. They often choose a few companies to focus their efforts on; they don’t hop from job to job. As such, they tend to have more loyalty toward your company as a client and will want to do their best for you. Independent contractors are passionate about their work. They want to be challenged, and they want to make a difference. They’re invested in the success of your business, even if it doesn’t always feel like it. 

Addressing Employee Misclassification Risk in Spain

As the world becomes increasingly interconnected, it is not just businesses growing more internationally. Now more than ever, individuals are taking advantage of improved communication technologies to work from home offices in their own country or homes in other countries. While this can be an excellent benefit for the workers, it also brings new challenges for employers and the organizations that hire them.

One of these challenges is the risk of misclassification—the failure of tax authorities to recognize a worker as an employee rather than an independent contractor. In many countries across the globe, independent contractors are engaged as disguised employees, thus not afforded the same workplace protection and tax benefits as employees. This malicious employment practice can lead to significant financial exposure, misclassification, and under-taxation risk for companies that hire such workers.

Another challenge faced by businesses with globally distributed teams is that they may have difficulty complying with local labor law requirements, such as compliant payroll management and employee onboarding or freelancer contracting procedures. And because there is no single global labor law or standard tax code, each country has its own set of employer requirements that must be adhered to by multinationals looking to hire remotely in those countries.

Differences in Contracts: Independent Contractor vs. Employee

Different types of contracts exist that full-time employees and independent contractors must be aware of, each with its specific rights and responsibilities for both parties. It is essential to be aware of this before entering into any agreement. This understanding will enable them to identify their employment status correctly.

  • An employee-employer contract is a contract of service.
  • A contractor-client contract is a contract for services.

How Tax Authorities Can Distinguish Independent Contractors from Employees

  1. How the parties treat each other.
  2. The amount of control exercised by the principal over the details of how the work is done.
  3. Whether payments are made by time or by results.
  4. Whether the work is part of the regular business of the principal.
  5. Whether the contract was entered into as a means of carrying on business or for any other commercial purpose.
  6. Whether the work requires special skills and initiative and whether such skill is peculiar to any trade, or business.
  7. The length of time for services to be provided, and more.
  8. Whether the worker is taking on financial risk.
  9. Whether the worker is providing their own equipment.
  10. Whether the worker is in receipt of employment benefits.
  11. Whether the worker can profit from their work. 
  12. Whether the worker has the right to terminate the contract.
  13. Whether the work performed requires special skills and initiative.
  14. The permanence or exclusivity of the relationship with the employer company.

How IT Companies Can Succeed in Converting Existing Contractors to Employees with a Global PEO in Spain

As the IT industry largely depends on unique skills and expertise, more and more IT companies are hiring talent internationally. To help you engage and reward your international IT talent with 100% compliance regardless of their location, we have designed an innovative Express Global Employment (EGE) solution.

With its help, many companies have already benefited from choosing employment or employer-employee relations versus conventional contracting (freelancing). See what they are saying.

Express Global Employment solution gives IT companies like yours a decisive advantage in the fight for top global IT talent. By offering stability and statutory benefits of official employment, you can win high-profile IT contractors/freelancers looking to change their status to employees. 

Companies gain maximum employee engagement and loyalty, with employees enjoying a stable workload and working on ambitious projects they might have never had as freelancers. With no need to look for new projects all the time, employed developers and other skilled IT professionals stay with one company longer, leading to lower staff turnover. In addition, when using our PEO solution, you get protected from any employee-independent contractor misclassification risks and unexpected costs. 

If you have not found the candidates yet, we can help you recruit international IT talent with subsequent employment in any country worldwide. 

Acumen International – Your Trusted Global PEO and EOR Partner in Spain

Headquartered in London, UK, Acumen International, a Global Employer of Record (EOR) and Professional Employer Organization (PEO) service provider, was founded in 2001. The company gives mid-sized and enterprise companies the power and flexibility to grow internationally with streamlined and simplified global labor expansion. 

Acumen International helps solve the frustrations faced by founders and leaders of technology companies looking to expand globally quickly but cannot or do not want to take on the liability, costs,  burden of direct employer status, or other risks associated with operating in individual countries. International employers can also use our global resources to test a new market quickly before establishing a local legal entity

  1. Immediate service coverage in 190 countries.
  2. Both a single point of contact and a dedicated account manager for your project for all target countries.
  3. A single contract for all in-country services (employment, immigration, legal, etc.)
  4. A single PEO provider assumes full responsibility for your international employees in multiple countries.
  5. Payments are made within the UK or to the UK bank company account.
  6. Fully compliant and standardized procedures and reporting systems.
  7. Standard payroll breakdowns for all target countries.
  8. As soon as we receive your request for a project in any country, we will send you a payroll breakdown and offer within 2 working hours.
  9. Full 100% fee money-back guarantee for employee or contractor payment delays.
  10. Tailored and 100% compliant employment contract drafts.
  11. No need to set up a new entity in every country where you have operations. You are not required to hire local employees or worry about local compliance requirements.
  12. The ability to scale your business quickly by hiring employees in multiple countries without having to set up a new entity in each country.
  13. A single point of contact for all employment-related questions and concerns.
  14. A single point of contact for all tax compliance questions and concerns.
  15. No need to worry about managing multiple payroll systems, tax filing requirements, or employee benefits programs across multiple countries since everything is handled by Acumen Global Employer of Record (EOR) and PEO solutions provider.

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the ‘Employee vs Independent Contractor’ Checklist

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