Spain: Practice Change Regarding Proof of Social Security for ICT Applications
October 11, 2024
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At a Glance
- Based on a change of practice regarding proof of social security coverage, the prior practice by which authorities accepted a ‘letter of commitment’ from Intra-Company Transferee (ICT) permit applicants’ host employer stating that the applicant would be temporarily registered in the Spanish social security system pending issuance of a Certificate of Coverage, is no longer allowed.
- Due to this change in practice, ICT permit applicants must now always include a Certificate of Coverage (to prove social security coverage in their country of origin) as part of their application.
- For many applicants, the standard government processing timeframe for Certificates of Coverage can be several months. Accordingly, businesses will need to reassess their onboarding schedules considerably, and ensure that they coordinate secondments according to expected processing timeframes.
- It is possible that applicants who cannot present a Certificate of Coverage upon the authorities’ request may have their ICT permit applications rejected.
- This change only affects companies from sending countries with which Spain has a bilateral social security agreement. For other countries, the obligation to register the employee in the Spanish social security system remains.
The situation
A change in practice has eliminated a previously-permitted practice in Spain that allowed Intra-Company Transferee (ICT) permit applicants to prove their social security coverage through a ‘letter of commitment’.
A closer look
- Previously-allowed practice. Spanish authorities would previously approve ICT applications if the applicant submitted a ‘letter of commitment’ from their host employer stating that the applicant would be temporarily registered in the Spanish social security system pending issuance of a Certificate of Coverage (a document that proves social security coverage in the applicant’s country of origin). This practice ensured that affected ICT applicants can commence working sooner than would otherwise be the case.
- Description of change. Based on a change of practice, the prior practice by which authorities accepted the ‘letter of commitment’, is no longer allowed. As a result, ICT permit applicants must now always include a Certificate of Coverage as part of their application.
- Applicability. This only affects companies from sending countries with which Spain has a bilateral social security agreement. For other countries, the obligation to register the employee in the Spanish social security system remains.
Impact
- Delayed onboarding timeframes. For many applicants, the standard government processing timeframe for these certificates can take several months. Accordingly, businesses will need to reassess their onboarding schedules considerably, and ensure that they coordinate secondments according to expected processing timeframes.
- Pending applications. It is possible that applicants who cannot present a Certificate of Coverage upon the authorities’ request may have their applications rejected.
Background - social security and mobility
Social security coverage is a critical feature of modern mobility and immigration. In particular, governments, businesses, and employers seek to confirm that foreign workers are covered by a social security system for the duration of their work, given the high cost of providing social security benefits (which is required by labor laws). Accordingly, host countries, including many in Europe, tend to require foreign workers to prove social security coverage (as a Certificate of Coverage does) in their home country. As is the case in Spain, this can be a prerequisite for work authorization.
Looking ahead
Fragomen is inquiring as to the implications of this new policy on pending applications, and is working on government advocacy efforts to reduce the impact of this new rule, and will publish further information if and when it becomes available.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
