How to Hire Software Developers in Europe: Salary Guide for Startups (2026)

Hiring developers in Europe is one of the smartest moves a funded startup can make. The talent is world-class, salaries are 30-50% lower than the US, and the timezone overlap with both American and Asian markets makes collaboration practical.

But "Europe" is not one market. A senior engineer in Zurich costs twice what they cost in Lisbon. Employment law in France is nothing like employment law in the Netherlands. And remote hiring across borders brings tax, compliance, and cultural complexity that catches founders off guard.

Here's your complete guide to hiring developers across Europe in 2026.

Why European Developers?

Cost efficiency without quality compromise. European universities produce exceptional engineers — think TU Delft, ETH Zurich, Technical University of Munich, Imperial College London. The talent pool is deep, technically rigorous, and increasingly English-speaking.

Timezone advantage. European developers overlap with US East Coast mornings and Asian evenings. For globally distributed teams, that's the sweet spot.

Strong startup ecosystems. Amsterdam, Berlin, London, Stockholm, Lisbon, Barcelona, Dublin, Tallinn — Europe has dozens of thriving tech hubs, each with their own talent pools and specialisations.

Retention. European developers tend to stay longer. The "job hop every 18 months" culture is less extreme than in the US, partly because notice periods are longer (1-3 months is standard) and partly because work-life balance expectations are different.

Salary Benchmarks by Country (2026)

All figures are annual gross base salary in euros. Add 20-35% for employer costs (social charges, pension, insurance) depending on country.

Western Europe — Premium Markets

Netherlands

• Junior Developer (0-2 years): €38,000-€48,000
• Mid-level (2-5 years): €52,000-€72,000
• Senior (5+ years): €72,000-€95,000
• Lead / Staff: €90,000-€120,000
• Note: 8% holiday allowance (vakantiegeld) is mandatory on top. 30% ruling available for international hires.

Germany

• Junior: €42,000-€52,000
• Mid-level: €55,000-€75,000
• Senior: €75,000-€100,000
• Lead / Staff: €95,000-€130,000
• Note: Berlin and Munich are the main hubs. Munich pays 10-15% more than Berlin. Strong employee protections make termination difficult.

United Kingdom

• Junior: £30,000-£42,000
• Mid-level: £45,000-£65,000
• Senior: £65,000-£90,000
• Lead / Staff: £85,000-£120,000
• Note: London adds 15-25% premium. Post-Brexit visa rules apply for non-UK/Irish hires. No mandatory holiday allowance but 28 days minimum leave.

Switzerland

• Junior: CHF 75,000-CHF 90,000
• Mid-level: CHF 95,000-CHF 120,000
• Senior: CHF 120,000-CHF 155,000
• Lead / Staff: CHF 145,000-CHF 190,000
• Note: Highest salaries in Europe, but employer costs are lower than you'd expect (~15%). Zurich and Lausanne are the main tech hubs.

Northern Europe — Strong Talent, Competitive Salaries

Sweden

• Junior: SEK 350,000-SEK 420,000 (~€31K-€37K)
• Mid-level: SEK 450,000-SEK 580,000 (~€40K-€51K)
• Senior: SEK 580,000-SEK 750,000 (~€51K-€66K)
• Note: Stockholm is the startup capital of Europe per capita. Spotify, Klarna, King alumni create a deep talent pool.

Denmark

• Mid-level: DKK 450,000-DKK 580,000 (~€60K-€78K)
• Senior: DKK 580,000-DKK 720,000 (~€78K-€97K)
• Note: High salaries, high taxes, but strong quality of life attracts retention.

Southern Europe — Best Value

Spain

• Junior: €25,000-€33,000
• Mid-level: €35,000-€50,000
• Senior: €50,000-€70,000
• Lead / Staff: €65,000-€85,000
• Note: Barcelona and Madrid are the hubs. Growing remote work scene. Excellent quality of life helps retention. Employer costs add ~30%.

Portugal

• Junior: €20,000-€28,000
• Mid-level: €30,000-€45,000
• Senior: €45,000-€65,000
• Lead / Staff: €60,000-€80,000
• Note: Lisbon is booming as a tech hub. Lowest Western European salaries combined with strong technical talent makes it exceptional value. NHR tax regime attracts international workers.

Italy

• Junior: €24,000-€32,000
• Mid-level: €33,000-€48,000
• Senior: €48,000-€65,000
• Note: Milan is the main tech hub. Strong engineering schools. Bureaucratic hiring process but improving.

Eastern Europe — Deep Talent, Significant Savings

Poland

• Junior: €18,000-€28,000 (or B2B contract equivalent)
• Mid-level: €30,000-€48,000
• Senior: €48,000-€72,000
• Lead / Staff: €65,000-€90,000
• Note: Warsaw and Krakow have massive talent pools. Many developers work as B2B contractors (sole proprietorship) for tax reasons. Strong in Java, .NET, and cloud infrastructure.

Romania

• Mid-level: €22,000-€38,000
• Senior: €38,000-€55,000
• Note: Bucharest and Cluj-Napoca. Excellent English skills. Strong in backend and DevOps.

Czech Republic

• Mid-level: €28,000-€42,000
• Senior: €42,000-€60,000
• Note: Prague-based. Growing startup scene. Good overlap with German and Austrian companies.

The Hidden Costs You Need to Know

Salary is just the start. Here's what catches founders off guard when hiring in Europe:

Employer social charges: 20-35% on top of gross salary depending on the country. Netherlands: ~25%. France: ~45%. UK: ~15%. This is not optional.

Mandatory benefits: Most European countries require paid vacation (20-30 days), sick leave, pension contributions, and sometimes a 13th month salary. Budget for it.

Notice periods: In the US, people leave in 2 weeks. In Europe, 1-3 months is standard, and senior roles can be 3-6 months. This means your new hire might not start for 3 months after accepting.

Termination costs: Firing someone in the Netherlands, France, or Germany is significantly harder and more expensive than in the US. Severance packages, mandatory procedures, and potential legal challenges are real. Factor this into your risk assessment.

Employer of Record (EOR) fees: If you don't have a legal entity in the country, you'll use an EOR service (Deel, Remote, Oyster). Typical cost: $400-$700/month per employee on top of their salary and benefits.

Remote, Hybrid, or On-Site?

The post-2020 world changed European developer expectations permanently:

Fully remote: Opens up all of Europe. A senior developer in Lisbon costs 40% less than one in Amsterdam, with comparable skills. But you need strong async culture, good tooling, and intentional team bonding.

Hybrid (2-3 days in office): The sweet spot for most funded startups. You get the collaboration benefits of in-person work without losing candidates who value flexibility. Requires a physical office, which limits your geographic pool.

On-site (5 days): Increasingly difficult to hire for. You'll pay a premium and lose candidates to competitors offering flexibility. Only makes sense for roles that genuinely require physical presence (hardware, lab work).

Our recommendation: Start hybrid in your home city, hire remote for specialised roles you can't find locally. As the team grows, let the data guide you — track performance and retention by work arrangement.

How to Compete for European Developer Talent

Money isn't everything in Europe. Here's what actually moves the needle:

Equity. European developers historically undervalue equity. That's changing as European exits grow. Offer it, explain it clearly, and use it as a differentiator against corporates who offer zero upside.

Learning budget. €2,000-€5,000 per year for conferences, courses, and books. Costs you almost nothing but signals that you invest in growth.

Work-life balance. Don't just say it — prove it. No Slack messages at 10pm. Real vacation policy. Flexible hours. European developers left corporate jobs for a reason.

Impact. "You'll own the entire payment system" beats "you'll work on a microservice in a team of 40" every time. At a startup, every developer's work is visible and meaningful. Sell that.

Modern stack. Developers care about what they build with. If you're running a modern stack (TypeScript, Go, Rust, Kubernetes, whatever's relevant to your domain), highlight it. If you're on legacy tech, be honest about your modernisation plans.

How Funded.club Helps

We hire developers across Europe for funded startups. Our network spans 50+ countries and we understand the local nuances — employment law, salary expectations, cultural differences, and where to find the best talent in each market.

Fixed fees from $4,900 per hire. Not a percentage of salary that punishes you for hiring in expensive markets.

First candidates in 7 days. Whether you need a senior Python engineer in Amsterdam or a lead full-stack developer in Barcelona, we'll find them.