The prosecutor's office of Spain's High Court has said it has opened preliminary proceedings over the complaint, which a rights group said involved human trafficking for forced labour and servitude, sexual abuse and violations of workers' rights.
"I deny having abused, coerced or disrespected any woman. These accusations are completely false and cause me great sadness," Iglesias, 82, said in a statement bearing his signature posted on his Instagram profile late on Thursday.
Iglesias - one of the world's best-selling Latin artists with more than 300 million records sold in 14 languages - said he had found "great comfort" in messages of support.
Rights group Women's Link Worldwide filed the complaint on January 5 on behalf of the two women, identified by the pseudonyms Rebeca and Laura, after a three-year investigation by US broadcaster Univision and Spanish outlet elDiario.es.
The group described the complainants as young Latin American women "in vulnerable situations who were heavily dependent on their wages due to their economic and social conditions".
The reports said they had worked in Iglesias' Caribbean residences in the Dominican Republic and Bahamas for 10 months in 2021.
The court has not provided any details of the case, which is subject to secrecy rules.
Attempts by Reuters to contact representatives of Iglesias by email and phone went unanswered, while the star's record label, Sony, has declined to comment on the allegations.
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