Why Spain requires an employer authorization
Under Ley 28/2022 (Spain's Startup Act), international teleworkers must demonstrate that their remote activity is authorized by the entity paying them. The UGE does not prescribe an exact letter format, but in practice it expects clear documentary confirmation that the employer knows you will work from Spain and permits it.
An employment contract stating the role is "remote" within the United States is rarely sufficient on its own. Filing with a generic U.S. remote work clause — without explicit Spain authorization — is one of the most common reasons a file receives a requerimiento (a request for additional documentation) before the UGE reaches a decision.
Why U.S. HR departments refuse
When a refusal happens, it is almost never personal. Based on my client files, corporate resistance comes from three places:
- Permanent establishment (tax nexus): Corporate tax counsel worries that an employee working in Spain creates a taxable corporate presence under international tax treaties. In reality, whether a permanent establishment exists depends on several factors — including whether the employee has authority to conclude binding contracts on behalf of the company — and cannot be assumed from remote work alone.
- Social Security liability: Payroll teams assume they will need to register with the Spanish Social Security system and withhold local contributions. This is the concern most directly resolved by the SSA Certificate of Coverage.
- Labor law exposure: HR directors fear that work performed on Spanish soil automatically triggers local statutory benefits — severance, statutory leave, termination protections. The legal analysis is more nuanced than most employers initially assume, but the concern is understandable.
What I tell HR departments
The first thing HR needs to hear is what they are not being asked to do. They are not authorizing a permanent relocation, opening a Spanish branch, or modifying the governing law of the employment contract. They are confirming a set of facts for a foreign immigration authority:
- The employment relationship exists and is at least 3 months old.
- The company has been genuinely operating for at least 1 year.
- Remote work from Spain is permitted.
- The employee's role and salary — which must meet the 2026 income threshold of €2,849 gross per month for a single applicant.
I draft the letter. My clients send it to their manager or HR lead pre-written, narrowly scoped, and ready to sign. Once corporate counsel sees a document that does not create the exposure they feared, many refusals resolve at this stage.
Strategy 1: Redraft the letter scope
Generic authorization templates found online use broad language that triggers legal alarm: "the company authorizes this employee to work from Spain" without defining what that means. When I draft these letters, I restrict the scope precisely to what the UGE needs to see — factual confirmation, not a policy commitment.
The letter does not require notarization or apostille. Only one document in your entire file needs notarization: your university degree (an apostilled notarized true copy of the original diploma). The employer letter, service contracts, and Certificate of Incorporation do not.
A well-drafted, narrowly scoped letter is often enough to move a hesitant HR department. If it is not, the next step depends on which concern is blocking them.
Strategy 2: Resolve the Social Security question with the SSA Certificate
For W-2 employees, the Social Security concern is the most common blocker — and the most directly solvable. Spain requires that teleworkers contribute to local social security unless an applicable bilateral agreement applies. The U.S.–Spain Totalization Agreement exists precisely to prevent dual contributions.
The mechanism is the SSA Certificate of Coverage: a document the Social Security Administration issues confirming that the employee remains covered under the U.S. system during their stay in Spain. With the certificate in hand, the U.S. employer has no obligation to register with the Spanish Social Security system.
The certificate takes about 3 months to obtain. It is always the first document started in a W-2 case. Showing HR that this document exists — and that it specifically addresses their Social Security exposure — unblocks the file more often than anything else I do.
Strategy 3: The 1099 contractor transition
Where an employer holds firm on an absolute internal policy, one structural option is transitioning the professional relationship from W-2 employment to a 1099 independent contractor arrangement. This is not always commercially appropriate, and it must be analyzed against U.S. state labor law and worker classification rules. But where it fits, it removes the employer from the immigration file entirely.
Under Ley 28/2022, self-employed professionals qualify on different criteria — commercial contracts rather than an employer letter, and direct registration as an autónomo in Spain rather than the SSA Certificate route.
| W-2 Employee | 1099 Contractor | |
|---|---|---|
| SSA Certificate of Coverage | Mandatory (~3 months) | Not applicable |
| Social Security in Spain | Exempt via SSA Certificate | Register as autónomo |
| Employer payroll registration | U.S. payroll continues | No employer requirement |
| Core immigration document | Employer authorization letter | Commercial service contract |
| Spanish clients allowed | No | Up to 20% of activity |
As a 1099 contractor, the company becomes a commercial client rather than an employer. A commercial client signs a service agreement — not an HR authorization letter — and has no payroll nexus concern. The full detail is in my guide on the Digital Nomad Visa for 1099 contractors.
What HR and corporate counsel usually ask me
Will having an employee in Spain create a permanent establishment?
In the vast majority of digital nomad cases, no. A permanent establishment under the U.S.–Spain Tax Treaty generally requires a fixed place of business through which corporate business is habitually conducted, or an agent who routinely concludes binding contracts on behalf of the company. An employee working from a personal residence in Spain without contract-signing authority rarely meets that threshold. The analysis is fact-specific, and I recommend that employers run it by their corporate tax counsel — but it almost never blocks the visa when the facts are reviewed properly.
Do we need to register for Spanish payroll or social security?
No. For W-2 employees, the SSA Certificate of Coverage maintains the employee under U.S. Social Security and exempts the company from Spanish social security enrollment. For 1099 contractors, the individual registers independently as an autónomo and handles their own contributions.
Will Spanish employment law override our existing agreement?
Choice of law clauses in U.S. employment contracts remain valid. Certain local public policy rules — basic health and safety standards, for example — apply to work performed within Spain regardless of contract terms. But the authorization letter itself does not alter the governing law of the employment agreement.
Do we need to register a branch or entity in Spain?
No. Ley 28/2022 was designed specifically to allow non-resident foreign companies to authorize remote work without establishing a branch, registering a subsidiary, or incorporating locally in Spain.
Filing route and what happens next
Once the employer issue is resolved, you have two filing options. Apply via a Spanish consulate in the U.S. and receive a 1-year visa. Or enter Spain legally as a tourist and have me file with the UGE from inside Spain — that route yields a 3-year permit and resolves in about 20 business days. The full comparison is in the route guide.
In practice, the UGE frequently issues requests for additional documentation before the statutory deadline when clarification is needed. Positive administrative silence is the applicable legal framework, but applicants should expect documentation requests rather than passive approval.
Most employer refusals are not final answers. They are responses to a document that felt broader than it was. When the concern is named, addressed precisely, and the right supporting document exists — whether that is a redrafted letter, an SSA Certificate, or a contractor agreement — the file moves. If you are stuck at the HR stage, the free assessment tells you which path applies to your specific employment situation.
Sources: Ley 28/2022 (BOE) · Ministerio de Inclusión — UGE. This guide is general information, not legal advice. Last updated: July 2026.