The general rule in Spain, as well as in the surrounding countries, is that workers who are posted are subject to the Social Security legislation of the country where they carry out the work activity, thus determining the obligation of affiliating and registering in that Social Security system.
Among the countries of the European Union there are two important exceptions, multi-state workers and seconded employees.
Regarding Multi-state workers (working in two or more different EU countries at the same time), employees will only remain subject to their country of residence if they carry out a substantial part of their duties (>25%) in their home of residence.
Regarding seconded employees, they can keep subject to their country of origin’s social security when posting is expected to last up to a maximum of 24 months (although normally extendable up to a total of five years), and as long as the following requisites are met:
- Temporary posting for professional reasons with referenced time limits.
- Maintenance of the employment relationship in the country of origin.
- Maintenance of “normal” activities of the company that is posting in the Member State where it was established.
- Exercise of activity and registration with Social Security of the posted worker in the Member State of origin prior to posting.
Outside of Europe, Spain has many other bilateral social security agreements recognizing the feature of seconded employee. This exceptionally allows maintenance of the Social Security legislation of the country of origin or at least, the calculation of the contributions in order to reach the contribution periods for benefits.
These bilateral agreements and the possibility of maintaining the Social Security legislation of origin greatly facilitate the posting of workers to Spain, since these posted persons have no obligation to affiliate, register, and contribute in Spain, often for a maximum period of five years. It may be advisable to formalize a letter of posting to regulate working conditions for operational purposes between company and employee, due to the particularities and cost of posting to Spain.
GD Global Mobility carries out payroll management, processes social security payments and tax withholdings, draws up contracts, and applies social benefit plans for all company employees. Contact us. We're here to help: Payroll service in Spain
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