The employee behind the portfolio: a real contract, not one of convenience
Nextica Law & Tax orders the employment side of a property portfolio and of a developer: the contract of the full-time employee that the business activity regime requires —with real duties, verifiable hours and the right collective agreement—, hiring the in-house construction and sales team, building and concierge staff under their specific agreement, and coordination of business activities with the contractors entering the building. The corporate structure of that regime is dealt with on the corporate governance page; here we look at the contract.
The contract exists on paper and not in reality. When someone asks what that person actually does, there is no answer.
What's included
1. Deciding beforehand whether the letting activity is to be classified as an economic activity, and what that requires in staffing terms.
2. Hiring the employee on a full-time employment contract where that classification is sought, with real rather than nominal duties.
3. Documenting that person's activity, which is what is required to evidence that the condition is genuinely met.
4. Grading site staff under the construction agreement, with professional cards and role-specific training up to date.
5. Grading sales staff, with the line between commercial agent and employed salesperson drawn in writing.
6. Concierge, maintenance and cleaning staff for the buildings under management, each under the applicable agreement.
7. Coordinating activities with contractors and subcontractors on site, with the chain of responsibility documented.
HERE AN EMPLOYMENT CONTRACT DECIDES A TAX CLASSIFICATION
It is the sector's peculiarity: how one person is hired changes how the entire letting activity is taxed.
Assuming letting qualifies as an economic activity without meeting the staffing requirement: for property letting, the rule requires that the activity be organised using at least one employee on a full-time employment contract. A part-time contract, an unregistered family member or an outsourced mandate do not count.
art. 27.2 of the Personal Income Tax ActSite staff without documented training or a professional card
subcontracting in construction requires evidencing training and an in-house prevention set-up, and the developer answers for what happens on its site even where it is not the direct employer.
Law 32/2006 on subcontracting in the construction sectorSelling through people paid on commission only
if they work within the company's organisation, using its resources and following its instructions, the relationship may be classified as employment, with unpaid contributions for the whole open period.
Workers' StatuteCURRENT CONTRACTUAL MODALITIES IN 2026
| Mode | When to use | Key requirements and risks |
|---|---|---|
| Ordinary indefinite | The standard modality since the 2021 reform. Preferable in case of doubt. | It can be full-time or part-time. For part-time work, specific hour recording and limitation of supplementary hours. |
| Fixed-discontinuous | Seasonal or cyclical activity, or work that is not provided continuously but is predictable. | Replaces the work and service contract for non-permanent but recurring activities. Incorrect design → can become ordinary indefinite. |
| Temporary replacement (art. 15.1.c ET) | Replace an employee with the right to job reservation (sick leave, maternity, leave of absence) or cover vacancy during the selection process. | The replaced worker or the reason for the vacancy must be identified. 3-month limit for vacancy coverage. |
| Alternating training (art. 11.2 ET) | Unqualified people for the position, under 30 years old. Bonuses in social security contributions. | Duration: 3 months to 2 years. Maximum workload: 65% in the first year, 85% in the second. Minimum compensation of 60%/75% of the minimum wage or the agreement. |
| Senior Management Contract (RD 1382/1985) | Senior management personnel who exercises powers inherent to the ownership of the company with full autonomy. | It is governed by RD 1382/1985 and not by the ET. Compensation in case of withdrawal: minimum 7 days/year unless otherwise agreed. No mandatory maximum legal probation period. |
Ordinary indefinite
Fixed-discontinuous
Temporary replacement (art. 15.1.c ET)
Alternating training (art. 11.2 ET)
Senior Management Contract (RD 1382/1985)
Frequently asked questions
Is registering someone full-time enough?
No, and this is where most cases are lost. Registration and the contract are the starting point, but what gets checked afterwards is the reality: what duties that person performs, whether those duties correspond to managing the tenancies or the portfolio, whether there are effective working hours evidenced by a time record, whether the pay is at market level and whether they sit under the right collective agreement. A contract with a family member with no real duties and no demonstrable presence survives neither a tax audit nor a Labour Inspectorate visit, and it fails both at once.
Which collective agreement applies to a property portfolio's staff?
It depends on the company's actual activity and on the role, and several coexist in this sector. Tenancy management and property administration have their own agreement framework; building concierge and porter staff have a specific agreement distinct from office staff; a developer with its own construction team may end up under the construction agreement for those roles. Choosing wrongly does not show in the first year: it shows when someone claims pay scale differences and brings along everyone else in the same position.
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