Hiring through intermediaries: the position in Spain and in other countries

Foreign organisations that decide to hire employees in Spain often choose to do so using an umbrella company or professional employer organisation to speed up the process before setting up local companies. However, this involves serious liability risks. The legal situation differs in other countries.

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Can companies engage employees through umbrella companies or professional employer organisations? 

No. The employment of foreign workers through umbrella companies until the establishment of the foreign company’s branch in Greece is not a common practice.

Legal risks

This practice could also be extremely risky, since in the event of a random investigation by the competent tax and labour authorities, high administrative fines can be imposed. There may also be tax implications in relation to the employees involved. In the event of a risk of permanent establishment, companies are recommended to reconsider its future plans and proceed with the establishment of a local branch in Greece.

Written by: Tasos Marmaras


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