An increasing number of international professionals are relocating to Málaga to benefit from the special regime for posted workers, commonly known as the Beckham Law.
When the employer is a foreign company without a legal entity in Spain, a key question arises: how should Social Security contributions be managed?
There are two main options:
1. A1 Certificate (where a treaty exists)
If the country of origin has a bilateral Social Security agreement with Spain (as is the case within the European Union and certain non-EU countries), the employer may apply for an A1 certificate.
This document allows the employee to continue contributing to the Social Security system in their home country during their temporary assignment in Spain.
In this case:
– There is no obligation to contribute to the Spanish Social Security system.
– The company is not required to register in Spain.
– Social security coverage remains in the country of origin.
This is generally the simplest solution; however, it is only valid if the assignment is temporary and the issuing country’s requirements are met.
2. Registration of the Foreign Company with the Spanish Social Security Authorities
If no agreement exists or it is not possible to obtain the A1 certificate, the foreign company must register in Spain with the Spanish General Treasury of Social Security (Tesorería General
de la Seguridad Social).
The process includes:
– Obtaining a Spanish NIE (Foreigner Identification Number) for the director or legal representative of the employing company.
– Applying for a Contribution Account Code (Código de Cuenta de Cotización – CCC).
– Registering the employee under the Spanish General Social Security Regime.
– Complying with monthly contribution obligations.
Even if the company does not have a Spanish incorporated entity, it may assume these obligations as a foreign employer.
Proper prior planning is essential to avoid labor and tax risks for both the company and the posted employee.
Conclusion
Before relocating to Spain, it is crucial to properly analyze the employment and contribution structure. Inadequate planning may create contingencies for both the foreign employer and the employee, potentially complicating the application of the Beckham Law regime.