EU Intra-Corporate Transfer (ICT) to Spain: What Happens Without a Social Security Agreement?

In today’s global economy, international talent mobility is no longer optional, it is a strategic necessity. For multinational companies, the EU Intra-Corporate Transfer (ICT) permit offers an efficient pathway to relocate executives, managers, specialists, and trainees across European operations.

And when it comes to destination markets, Spain stands out as one of the most attractive hubs for global expansion.

However, while the ICT authorization process is designed to be streamlined, one legal requirement consistently creates friction for companies: Social Security coverage.

This issue becomes particularly complex when the transferring employee comes from a jurisdiction that does not have a bilateral Social Security agreement with Spain.

In this article, we explain:

• How the ICT permit works in Spain

• Why Social Security is a critical compliance factor

• What happens when no bilateral agreement exists

• How companies can successfully structure transfers in these scenarios

We will also walk through a real-life case involving the transfer of a senior executive from Hong Kong.

What is the EU ICT Permit in Spain?

The EU ICT permit allows non-EU employees to be temporarily transferred from a company outside the EU to a related entity within Spain.

Key advantages include:

• Fast-track processing through the Large Companies Unit (UGE-CE)

• Authorization to live and work anywhere in Spain

• Potential mobility within the EU under certain conditions

To qualify, companies must demonstrate:

• A genuine corporate relationship between entities

• At least 3 months of prior employment

• Appropriate qualifications or seniority

But one requirement often underestimated is proof of Social Security coverage during the transfer.

The Social Security Challenge

In standard ICT transfers, employees remain affiliated with their home country’s Social Security system.

This is possible when:

• A bilateral Social Security agreement exists

• A Certificate of Coverage can be issued

This certificate confirms the employee continues contributing in their home country, avoiding double contributions.

What If No Agreement Exists?

Here’s where complexity arises.

Some major global business hubs — including Hong Kong — do not fall under Spain’s bilateral Social Security agreements.

In these situations:

• The home country cannot issue a Certificate of Coverage

• The Spanish authorities may still request proof of protection

When no agreement applies, the legal pathway becomes clear: The employee must be registered under the Spanish Social Security system.

This requires:

• Local enrollment

• Employer contributions in Spain

• Contractual alignment with Spanish compliance standards

Failure to structure this correctly can result in:

• ICT rejection

• Delays

• Compliance risks

Best Practices for ICT Transfers Without Social Security Agreements

1. Verify Agreements Early

Before initiating any transfer, confirm whether a bilateral agreement exists. If none applies, plan for Spanish Social Security registration from the outset.

2. Anticipate Cost Implications

Local contributions impact: Mobility budgets, total employment cost, assignment structuring. Addressing this early prevents strategic surprises.

Real-World Insight: Hong Kong to Spain

In a recent ICT transfer involving a Hong Kong-based executive, the absence of an applicable Social Security agreement initially raised concerns during the application phase.

By proactively structuring local Social Security registration and supporting documentation, the application proceeded smoothly — avoiding delays and ensuring full compliance.

International mobility is no longer just an HR function — it is a legal and strategic operation. Understanding how Social Security obligations interact with ICT eligibility is essential for successful transfers, regulatory compliance and cost predictability.

With the right legal structuring, even complex transfers from non-agreement jurisdictions can be executed efficiently.

Need Guidance on an ICT Transfer?

If your company is planning to relocate talent to Spain — especially from jurisdictions without Social Security agreements — early legal structuring can make the difference between approval and delay.

Get in touch to assess your transfer strategy and ensure a smooth, compliant ICT process from day one.