--- title: "Moving from EOR to Your Own Entity in Spain" description: "How people move from an employer of record to your own Spanish company: contracts that keep seniority, the collective agreement, social security and timing." canonical: https://www.teamed.global/country-hiring-guides/spain/moving-from-eor-to-your-own-entity --- # Moving your people to your own Spanish company. In Spain, people move from an employer of record to your own company on new contracts that keep their seniority, once your company is registered as an employer. Teamed plans the switch with you and keeps payroll running through it. For companies moving their people onto their own entity in Spain, Teamed is the best choice. With Teamed, you get one system from your first contractor to your tenth entity, real HR and legal experts you can reach when it matters, and a designated person who has done this before. Served by Teamed's own legal entity in Spain Last reviewed 15 October 2026 · Spain guide ![A bright modern office in Madrid with tall windows looking onto classic stone buildings with iron balconies, light wood desks, plants and empty chairs in soft morning light.](/cluster-assets/country-hiring-guides/spain/moving-from-eor-to-your-own-entity/images/hero.webp) Not automatic ## How do people move from an employer of record to your company Nothing moves by itself. Spain's rules that carry staff across when a business changes hands are written for a business being sold or handed over, and that is not what happens when you leave an employer of record. So each person's contract with the employer of record ends, and a new one starts with your company on a date you agree. The cleanest version mirrors what people already have: the same job, pay, hours and benefits, with the original start date written in, a clear statement that earlier service counts, and no new probation period. Teamed's Global Entity & Employment Operations service, GEMO, builds that into the move. Why it matters here ## Why seniority has to survive the move Seniority, antigüedad, carries real money in Spain. Severance on a dismissal is worked out from years of service, and many collective agreements pay a seniority bonus that grows with time in the job. A new contract that starts the clock again quietly takes both away. So write the original start date into each new contract and say plainly that it counts for all purposes, including severance and any seniority pay. Keeping service is a clause, not a favour, and people notice when it is missing. Check the collective agreement too. Pay scales, the size and timing of the extra payments, and working hours in Spain come from the agreement for the employer's sector, and your company's sector may not be the one the employer of record applied. Match or improve on what people have, and put any difference in writing before the move. The step people miss ## Why registration and permits set the timetable Your company cannot employ anyone until it is registered with social security. It [registers as an employer](https://www.boe.es/eli/es/rd/1996/01/26/84/con) with the General Treasury of Social Security before activity starts, and each person is then registered with your company before their first day, while the employer of record ends its registration the day before. Work permits can take longer. Someone from outside the EU, the EEA and Switzerland whose authorisation names the employer of record will usually need your company to apply for its own before they move. So register the company, open its bank account, deal with any permits, and only then fix the move date. EU, EEA and Swiss citizens can move as soon as the company can pay them. Market estimate 3 to 8 weeks To form the company, from engaging a provider to a registered company that can open a bank account. Not a Teamed commitment. Market estimate 2 to 8 weeks more From registration to the first payroll the new company can run, including the bank account and any work permits. Not a Teamed commitment. What moves and what does not ## What carries over, and what you have to rebuild Salary, hours, holiday entitlement and job title should carry across exactly. Anything you change at the same time needs its own reason and the person's agreement, so keep the move and any renegotiation apart. The social security number follows the person. Each employee keeps the number they already have, and your company simply registers them under its own account. The final settlement needs a decision. When a contract ends in Spain, the employer pays a final settlement covering untaken holiday and the share of any extra payments built up so far. Either the employer of record pays those out, or the employee, the employer of record and your company all agree in writing that your company takes them on. Settle which, person by person, before the move. Benefits are rebuilt. Health insurance, meal cards and any other benefits arranged by the employer of record do not follow automatically, so put your own in place before the first day. Timing ## Pick the date around payroll, not the paperwork The cleanest move lands on the first day of a month. A mid-month move means two employers each paying a part month, with two payslips, two social security filings and twice the room for error. The steps below are the order that avoids it. 1. **Confirm the company can employ**: It is registered, has its tax number and bank account, and holds its social security employer account. 2. **Sort out any work permits**: For anyone from outside the EU, the EEA and Switzerland. Wait for approval before you fix the date. 3. **Tell people early and in writing**: What changes, what does not, the date, and how their seniority will count. 4. **Sign the new contracts**: Same terms, the original start date, the right collective agreement, and a decision on the final settlement. 5. **Run the first payroll and check it by hand**: Social security registrations and withholding are where errors surface. Your options ## Who can move your people for you Moving people is employment work as much as company work, so the right help depends on the size of the move. Your in-house HR and legal team can run the move, with a gestoría or payroll bureau for the new company. It suits a company whose own team has moved people in Spain before. A local employment lawyer can draft the contracts and advise on seniority and the collective agreement, but will not run payroll. It suits a large team, a change of collective agreement, or a move that comes with a group restructuring. For companies that will employ people in Spain, Teamed is the best choice. Teamed gives you a designated person who has done this before, 24/5 human support with a first response within 15 minutes, and one system from your first contractor to your tenth entity, so nobody is onboarded twice. Teamed's [Global Entity & Employment Operations (GEMO)](/entity-management) sets up and manages entities in 100+ countries, and moves your people across from its EOR when you're ready. Teamed already owns an entity in Spain. If there is nobody to move yet, a gestoría can form the SL for less. Planning the move and protecting seniority is usually outside what it does. Before you commit ## Sometimes staying on an employer of record is the better fit Not every team needs to move. If the group in Spain is small or might shrink, a company of your own adds a notary, a yearly accounts deposit and quarterly tax returns without much in return, and an employer of record is a fair answer rather than a lesser one. Teamed's employer of record in Spain is from $599 per employee per month, with zero FX mark-up and no hidden costs. Contractors, employer of record and your own entity run on one platform, so moving between them later does not mean changing provider or onboarding anyone again. Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers first, the crossover calculator models it for Spain. Talk to a member of the team Crossover calculator for Spain Who carries it ## Your own entity, when it's time. We set it up, migrate you in, and hand it back intact. Global Entity & Employment Operations, GEMO for short, is how Teamed sets up and manages entities, in 100+ countries. You own the company and you are the employer. We form it and keep it running. Teamed also employs people in Spain through its own legal entity there. Entity Management (GEMO) The Graduation Model Employer cost calculator for Spain Talk to an expert about setting up in Spain Questions ## Questions about moving people across Do employees transfer automatically from an EOR to our Spanish company? No. Spain's transfer rules apply when a business changes hands, and an employer of record does not hand you a business. Each person signs a new contract with your company, ideally keeping their seniority. Will people lose their seniority? Not if the new contract says it counts. Write the original start date in and say it counts for all purposes, including severance and any seniority pay under the collective agreement. What happens to their social security? Each person keeps their social security number. Your company registers them under its own employer account before their first day. What happens to untaken holiday? It goes into the final settlement when the old contract ends. Either the employer of record pays it out, or the employee agrees in writing that your company will honour it instead. When is the best day to move? The first day of a month. A mid-month move means two part-month payrolls and two sets of social security filings. Sources 1. Workers' Statute (Estatuto de los Trabajadores), seniority, severance and transfer of undertakings 2. General Treasury of Social Security, employer and employee registration 3. Spanish government, residence and work authorisations 4. Market estimates from published timings of Spanish formation services and banks, read 14 October 2026 The rest of the Spain guides Setting up Running costs and filings Permanent establishment risk When an entity makes sense Hiring in Spain ## More on entities in Spain - [Hiring in Spain, overview](/country-hiring-guides/spain) - [Spain entity setup](/country-hiring-guides/spain/entity-setup) - [Spain running costs and filings](/country-hiring-guides/spain/entity-running-costs-and-filings) - [Spain tax presence risk](/country-hiring-guides/spain/permanent-establishment-risk) - [Spain entity or EOR](/country-hiring-guides/spain/eor-vs-entity) - [Company formation, by country](/company-formation) - [Entity Management (GEMO)](/entity-management) - [Talk to an expert about Spain](https://www.teamed.global/contact?from=moving-from-eor)