Hiring an Undocumented Domestic Worker in Spain: Fines

At Maids & Co, as a domestic staffing agency, every week we help families who are still carrying problems from informal hiring inherited from a bad previous experience. Taking someone on without a work permit or without a contract can look like the easy option, but it leaves the employer exposed to fines, claims and inspections, and the worker herself in a vulnerable position. This guide sets out, under the rules in force in 2026, what the employer really risks and how to hire legally.

What the employer risks by hiring without papers or without a contract

The consequences can include the back-payment of contributions and administrative penalties. It is worth separating two situations that are often confused: hiring someone who is not authorised to work in Spain (immigration) and failing to register someone who is allowed to work (Social Security).

Hiring a foreign national without authorisation (Spanish Immigration Act)

Employing a foreign national who lacks a residence and work permit is a very serious infringement of Article 54.1(d) of the LOEX. The penalty is 10,001 to 100,000 € (Article 55.1(c)) for each worker in an irregular situation, and the employer is also liable for the Social Security contributions (Article 36.5).

Failing to register with Social Security (LISOS)

Registration in the Special System for Household Employees is compulsory from the first hour of work, regardless of the weekly hours. Failing to register is a serious infringement under Article 22.2 of the LISOS (Royal Legislative Decree 5/2000), penalised at 3,750 to 12,000 € per worker (Article 40.1.e). On top of this comes payment of the unpaid contributions with a surcharge of 20% if paid before the deadline in the claim or inspection report ends, or 35% after that (Articles 29.4 and 30 of the LGSS), plus interest, which the Social Security Treasury (Tesorería General de la Seguridad Social) can claim up to four years back. If you need to formalise the relationship, we can guide you through how to register your domestic worker with Social Security.

Can the worker report you? Inspections and the courts

Yes. A domestic worker, with or without papers, can turn to the Labour and Social Security Inspectorate (Inspección de Trabajo y de la Seguridad Social) or the courts to claim unpaid wages, recognition of the employment relationship and registration. The employment relationship exists even without a written contract: the lack of a document does not let the employer off the hook, it simply weakens their evidential position. Working without a contract does not cancel out rights, as we explain in our guide on the domestic worker without a contract. An inspection can be triggered by a worker's complaint, by the authorities cross-checking data, or on the inspectorate's own initiative.

Arraigo and regularisation: what changed in 2025-2026

For years it was widely believed that, to regularise her status, the worker had to report her employer. That is no longer the case. The new Immigration Regulation (Royal Decree 1155/2024, in force on 20 May 2025) reorganised the arraigo routes and opened up options that do not depend on a complaint. We cover this in our guide to the new arraigo law for domestic workers on part-time contracts.

Arraigo sociolaboral (no complaint needed)

This is now the main route. It allows a person to regularise their status if they can prove at least two years of continuous residence in Spain and present an employment contract of at least 20 hours a week, with a salary equal to or above the SMI (in proportion to the hours). It does not require reporting the employer or an integration report. Importantly, the contract is signed by the family, not the agency, because the employer is the family.

Cooperation with the labour or judicial authorities (residual route)

The former arraigo laboral is no longer among the types of arraigo (Article 125 of Royal Decree 1155/2024). For someone who has worked irregularly for at least six months in the previous two years, there is the permit for cooperating with the labour or judicial authorities (Article 129.2), which includes a court decision or, where applicable, the administrative decision on the Labour Inspectorate's infringement report. This is where a complaint or an inspection report can come into play, with the resulting risk of a penalty for the employer. It is no longer the compulsory route.

Extraordinary regularisation 2026 (closed on 30 June)

Royal Decree 316/2026 opened an extraordinary process for people who arrived in Spain before 1 January 2026 and could prove five months of residence. The application window closed on 30 June 2026: new applications are no longer accepted. From the notice that processing had started, the person was provisionally allowed to live and work until a decision was reached. The deadline for a decision is three months at most, and the permit granted lasts one year. If you want to help your worker regularise her status, see whether you can sort out the paperwork for your domestic worker.

The employer's obligations if you hire legally (2026)

Hiring legally is simpler than it looks, and it costs less thanks to the rebates currently in force. Here are the key points for 2026:

• Registration with Social Security (Seguridad Social) from the first hour, paid by the employer.
• Minimum wage: 9.55 €/hour worked; full-time, 1,221 €/month over 14 payments (equivalent to 1,424.50 €/month if spread across 12 payments) and 17,094 €/year (Royal Decree 126/2026).
• Contributions including the Intergenerational Equity Mechanism (MEI) of 0.90% (0.75% paid by the employer and 0.15% by the worker), with a 20% reduction in the employer's contribution for common contingencies, an 80% rebate on unemployment and the Wage Guarantee Fund (FOGASA), and, for large families (familia numerosa) with that status recognised when hiring, a 45% rebate for a single person caring for the family (Additional Provision 3 bis of Royal Decree-Law 1/2023), in place of the 20% reduction.
• Income tax (IRPF): a resident family employing someone for its own home is not obliged to withhold: that duty falls on companies and on those who pay in the course of a business activity (Article 99.2 of the IRPF Act; Article 76.1 of the IRPF Regulations). That is why the worker is paid with no withholding and declares her income herself if required.
• Overtime: a maximum of 80 hours a year (Article 35.2 of the Workers' Statute (Estatuto de los Trabajadores), applied via Article 9.5 of Royal Decree 1620/2011).
• Occupational risk prevention (Royal Decree 893/2024): mandatory since 14 November 2025; training is provided through eFundae since May 2026; health monitoring is voluntary, at least once every three years, and does not yet apply: it is awaiting implementation in the National Health System (SNS).
• Ending the contract: termination at the employer's initiative must be in writing, state a specified cause and include severance of 12 days' salary per year worked, up to a maximum of 6 months' pay; an unfair dismissal rises to 33 days per year (up to 24 months' pay). Royal Decree-Law 16/2022 abolished free withdrawal (libre desistimiento) and gave domestic workers access to unemployment benefit.

Steps to a legal hire

• Check that the person holds a valid residence and work permit before you sign.
• If they are going through the arraigo process, draw up a pre-contract for at least 20 hours a week, with a salary equal to or above the SMI and a suspensive clause conditional on a favourable decision.
• Register the worker with Social Security before the first day of work.
• Sign a written contract and provide payslips: this documents the relationship and lets you apply the rebates.

If this is your first hire, follow our guide to hiring domestic staff in Spain for the first time.

Hire with peace of mind: legal recruitment with Maids & Co

The safest way to avoid complaints, fines and inspections is to hire domestic staff whose paperwork is in order from day one. At Maids & Co we select verified, legally documented domestic workers in Madrid and on the Costa del Sol, and we support you with registration and hiring. See our prices and services or get in touch to find the right person for your home. Informal hiring can prove very expensive; doing it properly costs far less than you might think.

This guide is for information purposes and reflects the rules in force in 2026; it does not replace advice from an immigration or employment professional for your specific case.