Why it matters

The Digital Nomad Visa requires that you work remotely for a company or companies based outside Spain. If your EOR is a U.S. entity (as most are for U.S. workers), this requirement is typically met. If the EOR has a Spanish entity — which some international EOR providers do — the analysis becomes more complex: you may be legally working for a company inside Spain, which is not what the visa is designed for.

Beyond eligibility, the EOR structure creates the same documentation challenge as a PEO: the legal employer on your pay stub and W-2 is the EOR, not the client company you actually work for. The SSA Certificate of Coverage and the Company Letter must both reflect the correct legal employer.

EOR vs. PEO: the key difference

Both structures separate the legal employer from the day-to-day work relationship, but they do it differently:

  • PEO: Co-employment — the client company and the PEO share employer responsibilities. The client company still legally exists as an employer.
  • EOR: Sole employer — the EOR is the only legal employer. The client company directs the work but is not the employer on paper.

For Spain visa purposes, the practical effect is similar: we need to document the correct legal employer and coordinate the Certificate of Coverage with the right entity.

How EOR employment affects your visa file

  • 1 · Identify the EOR entity. Confirm which company you are legally employed by and in which country it is incorporated. U.S. incorporation is preferable for the DNV analysis.
  • 2 · Verify the work relationship structure. Who directs your day-to-day work? What country is the end client based in? Does any Spanish entity appear in the chain?
  • 3 · EOR requests the Certificate of Coverage. As your legal employer, the EOR must submit the request to the SSA. Your contact at the client company can help facilitate this.
  • 4 · Company Letter drafted correctly. The letter must identify the EOR as the legal employer while also describing the nature of the remote work relationship.
  • 5 · File once the certificate arrives. Same as any W-2 case — the certificate is the critical-path document.

Common mistakes

  • Assuming all EOR structures are equivalent. Where the EOR is incorporated matters. An EOR with a Spanish subsidiary may create a more complex eligibility question.
  • Contacting the client company for the Certificate of Coverage instead of the EOR. The SSA communicates with the legal employer. Your client company contact can help, but the EOR must submit the request.
  • Not disclosing the EOR structure upfront. EOR cases require a slightly different initial analysis. Mentioning it in your first message lets me assess the structure before gathering any documents.

It depends on the structure. If the EOR is a U.S. entity employing you to work for a U.S. client, the visa analysis is similar to a standard W-2 case. If the EOR is a Spanish entity (which some international EORs are), the relationship may not qualify for the DNV because the visa requires working for a company outside Spain. This is one of the structural questions I examine in the initial assessment.

A PEO co-employs workers alongside the client company — the client still has its own legal entity. An EOR is the sole legal employer, with no co-employment relationship. Companies use EORs when they want to hire in a country where they have no local entity.

If the EOR is a U.S. entity and you are covered under U.S. Social Security, yes — the same totalization agreement applies and you need the SSA Certificate of Coverage. The EOR must request it as your legal employer. The process is similar to PEO cases.

Deel, Remote, Oyster HR, and Rippling (which offers both PEO and EOR services). Each has a different process for cooperating with the Certificate of Coverage request.

Often yes, but the analysis is more nuanced than a standard W-2 case. The key questions are: where is the EOR incorporated, who is the ultimate client of the work, and does the structure genuinely place you as an employee of an entity outside Spain. I work through this in the free assessment.