EOR or your own entity — figure out what's right for you.
Compare the total cost, timeline and complexity of hiring through an Employer of Record vs. setting up a legal entity in-country. Get an answer in seconds — for real markets, not vague averages.
Reflects statutory approvals, banking, tax registrations and labour compliance in Spain.
Your own entity pays off from ~7 employees in Spain
Break-even is calculated at your 3-year horizon. Shorter horizons favour EOR because entity setup and annual ops need volume to amortise.
Estimates are illustrative averages across common providers and jurisdictions in USD. Real quotes depend on entity type, industry, benefits, banking, and legal counsel. For a binding number, contact our team.
The trade-offs behind the number.
| Dimension | Employer of Record | Own entity |
|---|---|---|
| Time to first hire | 5–10 business days | 30–120 days depending on country |
| Upfront cost | None | $5k–$18k in legal & incorporation fees |
| Ongoing overhead | Single monthly management fee | Accounting, local director, audits, filings |
| Compliance risk | Owned by the EOR provider | Owned by you — local counsel required |
| Best for | 1–15 hires per market, testing new geographies | 15+ hires per market, long-term commitment |
| Equity & benefits control | Standard packages via provider | Fully customisable — stock options, plans, perks |
| Exit cost | Terminate contract, notice period | Wind-down process, redundancy, deregistration |
Choose EOR when…
- Testing a new market with 1–5 hires
- You need to be live in weeks, not months
- Legal, tax and payroll complexity is high
- You're unsure of long-term commitment to the country
- You want a single vendor across many markets
Set up an entity when…
- You're scaling past ~15–25 employees in one country
- You need equity plans, local subsidiaries, or IP holding
- Local presence is required to bid on contracts
- Long-term (5+ year) commitment is certain
- You want full control over benefits, policy and payroll
Common questions.
How accurate are these estimates?+
They reflect typical market rates across leading providers and Big 4 / mid-tier legal fees in each country. Real quotes vary by entity type, industry (regulated sectors cost more), banking complexity and benefits design. Use the number as a decision starting point, not a binding budget.
What's included in the EOR monthly fee?+
In our model: employment contract, statutory registrations, monthly payroll, tax filings, statutory benefits administration, HR compliance and offboarding. Employee salary, employer social contributions and mandatory 13th-month payments are on top — see our Employee Cost Calculator for those.
What's included in entity ongoing costs?+
Local accounting and bookkeeping, annual financial statements, corporate tax filings, registered office, statutory director / secretary services where required, and an annual audit where the country mandates it. Payroll is priced per employee per month on top.
When does an entity become cheaper than EOR?+
Typically once you have 15–25 employees in a single country over a 3+ year horizon. The exact break-even depends on the country: low-cost markets like Romania or Poland break even faster than Germany or Brazil. The calculator shows your specific break-even.
Can we start with EOR and switch to an entity later?+
Yes — this is the most common path. Hire your first 1–10 people via EOR while you validate the market, then transition them onto your own entity once volume justifies it. We handle both sides of the migration.
Do you support countries not listed here?+
Yes. We deliver EOR and entity setup in 150+ countries. The dropdown covers the most-requested markets; contact us for a tailored comparison in any jurisdiction.
Not sure yet? Have us model it for your real plan.
Share your countries, headcount and timeline. We'll return a costed EOR-vs-entity comparison for your specific case within 24 hours.