Hiring Tech Talent in Europe: A Guide for International Companies

Europe has more technology professionals than ever, yet most companies still struggle to hire them. For international companies, the question is not only how to find good engineers, but where to hire them and how to employ them legally once you have.

This guide looks at the state of the European tech talent market in 2026, how salaries compare between major cities, the options for employing people across borders and why Spain has become one of the most popular places to build a team.

The European tech talent market in 2026

According to Eurostat’s Digitalisation in Europe 2026, more than 10 million people worked as ICT specialists in the EU in 2025, about 5% of all employment. That is a long way short of the EU’s target of 20 million ICT specialists by 2030.

The shortage shows up in day-to-day hiring. In Eurostat’s survey of businesses, a lack of applications was the most common reason ICT roles were hard to fill, reported by 43% of companies that recruited ICT specialists (VDS). Women also make up only around one in five ICT specialists in the EU, which narrows the pool further.

Competition is fiercest for senior engineers, AI and machine learning specialists, data engineers, and security and platform roles. These people rarely apply to job adverts. They have to be found and persuaded.

Where to hire: salaries by city

Pay varies hugely across Europe. These are the median software engineer salaries reported to Euro Top Tech by engineers in each city (gross per year, November 2026):

• London: €140,000
• Amsterdam: €125,000
• Kraków: €100,000
• Warsaw: €95,000
• Berlin: €89,374
• Munich: €85,000
• Barcelona: €75,000
• Madrid: €56,500
• Porto: €56,000
• Lisbon: €45,500

Self-reported figures lean towards experienced engineers at international companies, and some cities have small samples, so treat them as a guide rather than a budget. Two things stand out. First, Central and Eastern Europe is no longer automatically cheaper for senior talent: in this data, Kraków and Warsaw report higher medians than Berlin. Second, Spain and Portugal still offer experienced engineers well below London, Amsterdam or German salaries.

Salary is only part of the cost. Employer social charges vary widely between countries, and in Spain they add around 30% on top of gross pay, so always compare the total cost of employment, not just salary.

Other factors to weigh up

• Time zone. Spain and most of Europe’s tech hubs run on Central European Time: the same as Germany and the Netherlands, an hour ahead of the UK and Portugal, and six hours ahead of New York, which leaves a shared working morning with the US East Coast.
• Language. English is widely used in tech teams in the Netherlands, the Nordics, Berlin, Barcelona and Lisbon, but less so in smaller cities.
• Depth of talent. Larger hubs make it easier to build a team of several people quickly. Smaller cities can work well for one or two remote hires.
• Retention. Lower-cost hubs attract many international employers, so expect competition for the same people.

How to employ people in another country

Finding the right person is only half the job. You also need a legal way to employ them:

• Local entity. Setting up a company gives you full control and is usually worth it once you plan a sizeable team in one country, but it takes months and needs local payroll, tax and legal support.
• Employer of Record (EOR). A provider employs people on your behalf in their country. It is the fastest way to make your first hires and to test a new market.
• Contractors. Freelancers can work well for short projects, but in most European countries, treating a long-term, full-time contractor like an employee creates legal and tax risk.

Employment law also varies. Notice periods, probation, dismissal rules and statutory extras, such as Spain’s 14 salary payments a year, differ by country, so build them into your offers and budgets from the start.

Why Spain stands out

Spain has become one of the most popular places for international companies to build tech teams:

• Two strong hubs. Barcelona alone had 135,890 digital professionals in 2025 (Mobile World Capital Barcelona), and Madrid is a major centre for enterprise technology, fintech and consulting.
• Competitive salaries. Experienced engineers cost considerably less than in London, Amsterdam or Germany.
• Easier relocation. Fast-track permits for highly qualified professionals are decided within 20 working days, and the Beckham Law’s flat 24% tax rate helps attract people from abroad.
• Lifestyle. Barcelona, Madrid, Valencia and Málaga are easy cities to persuade people to move to.

Our guides to hiring in Spain and hiring AI engineers in Barcelona go into more detail.

Practical tips for hiring across Europe

1. Start with the role, then choose the location. Decide what the person needs to do and how closely they need to work with your existing team before you pick a country.
2. Benchmark locally. National averages hide big differences between cities, and between local and international employers.
3. Write down your remote and hybrid rules. Be clear about where people can work from. Working from another country can create tax and employment obligations there.
4. Go to the candidates. With applications scarce, a strong employer story and direct outreach matter more than job adverts.
5. Keep the process short. The best candidates have options in every market. Three stages and quick feedback win.

How Global M can help

Global M is a talent consultancy headquartered at Barcelona Tech City, with offices in London, Madrid, Cambridge, New York and Johannesburg. Since 2012 we have helped companies hire in more than 40 countries. With an Embedded Hiring Team, a dedicated Talent Partner joins your team to run hiring across Europe for one monthly fee. For individual key roles, Success-Based Hiring means you only pay when you hire.