2025 hiring costs in Europe’s top remote-work destinations
Author
James Kelly
Last Updated
19 January 2026
Read Time
13 min
As remote work continues to reshape the global talent map, countries across Europe are launching new digital nomad programmes in an attempt to attract skilled professionals to their shores.
With benefits like generous tax breaks, streamlined routes to full-time residency, and a lower cost of living, it’s no surprise that top talent is assessing their options and deciding to take their skills abroad.
But while these opportunities open up exciting possibilities for remote workers, they raise an important question for employers: How much does it actually cost to hire someone in these emerging hotspots?
Based on our research across European markets, the cost of hiring an employee varies dramatically. Taking a €60,000 salary as a benchmark, the total employer costs to hire in popular digital nomad hotspots range from €61,357 in Romania to €88,326 in Italy. That’s a 44% difference that can significantly impact your hiring budget and competitive positioning.
Taking a €60,000 salary as a benchmark, the total employer costs to hire in popular digital nomad hotspots range from €61,357 in Romania to €88,326 in Italy. That's a 44% difference that can significantly impact your hiring budget and competitive positioning.
What our analysis revealed
This analysis uncovers what companies actually pay beyond the base salary when you factor in costs like mandatory social security contributions, employer taxes, health insurance, and other required payments that can substantially increase your total hiring expenses.
For each location mentioned in this blog post, we provide:
- Total employer cost to place someone on a €60,000 gross salary
- Minimum income threshold for digital nomad visa qualification
- Average local salary for mid-level Software Developers for the market context
This data comes from our larger report on employment costs across 36 European countries. Download it for free here to get your hands on the complete dataset.
Cost comparison from lowest to highest cost
Country
Total employer cost for a €60K salary
Visa income threshold
Average developer salary
Romania
€61,357
€47,400/year
€24,700
Malta
€62,691
€42,000/year
€60,900
Hungary
€66,769
€36,000/year
€42,200
Cyprus
€69,240
€42,000/year
€48,200
Croatia
€70,828
€26,400/year
€45,300
Greece
€73,884
€42,000/year
€39,200
Portugal
€75,350
€41,760/year
€31,200
Spain
€79,637
€33,120/year
€36,800
Estonia
€80,430
€54,000/year
€31,900
Italy
€88,326
€28,000/year
€44,200
Romania: Most cost-effective for employers
- Total employer cost (€60k gross): €61,357
- Visa requirement: €47,400/year (€3,950/month)
- Avg. developer salary: €24,700 gross
Romania offers employers the lowest total costs, not just out of this digital nomad analysis, but out of our entire 36-country study. With minimal employer-side contributions keeping the total outlay close to the gross salary figure, Romania presents an attractive proposition for employers looking to keep costs low.
Since 2022, Romania has been attracting remote workers with its fast-growing tech hubs in Bucharest and Cluj-Napoca, where modern coworking spaces and digital infrastructure meet centuries-old architecture. The country has invested heavily in internet connectivity, now ranking among Europe’s fastest.
The Long-Stay D/AS visa allows remote workers to stay for up to one year, renewable for another year. An important note is that the income requirement adjusts with the national average salary, and the current requirement means employees need to bring in at least three times this benchmark for the six months before application.
More information: Romanian Ministry of Foreign Affairs e-Visa
Malta: Strategic EU location with low overheads
- Total employer cost (€60k gross): €62,691
- Visa requirement: €42,000/year (€3,500/month)
- Avg. developer salary: €60,900
Malta’s growing reputation as a prime talent destination makes it a standout strategic option for European hiring. This EU island attracts professionals with its Mediterranean lifestyle, well-engrained expat ecosystem, and a flourishing tech sector (especially in gaming, fintech, and blockchain).
Employers also benefit from Malta’s employment cost structure. With very low overheads, a €60,000 gross salary costs an employer just €62,691 in total. The Nomad Residence permit has an income threshold of €42,000 and is valid for one year initially (and renewable for up to four). Bringing extra family members requires an additional 20% of the median wage.
More information: Residency Malta Agency – Nomad Residence Permit
Hungary: Simplified 10% employment cost
- Total employer cost (€60k gross): €66,769
- Visa requirement: €36,000/year (€3,000/month)
- Avg. developer salary: €42,200
Hungary’s employment structure features a flat 10% employer charge across the salary ranges studied in our eBook (€32,000, €60,000, and €150,000). This simplifies payroll calculations for companies looking to recruit talent in this increasingly popular Central European location.
The White Card (fehér kártya) is the main permit for individual remote workers who already earn their income based outside of Hungary. The capital city, Budapest, has developed a significant digital nomad community, with plenty of dedicated coworking spaces and regular networking events.
The White Card is valid for 1 year and is renewable once for a maximum of 2 years. Applicants need to prove they have at least €3,000 net monthly income for the six months prior to application and provide proof of Hungarian accommodation upfront.
However, family members cannot accompany holders on the White Card and must apply through separate visa categories. The permit doesn’t provide a pathway to permanent residency.
More Information: Hungary Visa
Cyprus: Limited permits with significant tax advantages
- Total employer cost (€60k gross): €69,240
- Visa requirement: €42,000/year (€3,500/month)
- Avg. developer salary: €48,200
Cyprus has capped its Digital Nomad Visa Scheme at 500 permits, while the employment cost structure sits in the low-to-middle range of European options. The island attracts remote workers with its strategic location between Europe, Asia, and Africa, plus 340 days of annual sunshine.
The visa runs for one year initially and is renewable for up to three years in total. Income requirements increase by 20% for a spouse and 15% for each dependent child, with clear calculations for family applications.
Eligible individuals may be able to access a 50% tax exemption on foreign income exceeding €55,000 annually for up to 17 years. The programme also offers 0% tax on dividends and capital gains (with specific exceptions).
More information: Gov.cy Visa Portal
Croatia: Extended stays with tax exemption
- Total employer cost (€60k gross): €70,828
- Visa requirement: €26,400/year (€2,200/month)
- Avg. developer salary: €45,300
Croatia offers Europe’s longest initial digital nomad stay at up to 18 months. The income threshold of €2,200 monthly is also the lowest among the countries studied. Popular cities like Zagreb, Split, and Dubrovnik offer diverse and attractive lifestyles, supported by reliable internet, a relatively low cost of living, and a growing number of digital nomad facilities, including co-working spaces.
Digital nomads are also exempt from paying income tax in Croatia, as long as they are working for companies outside the country. They are also not required to pay the usual employee contributions for pension or health insurance, but they must cover their healthcare costs through private providers. After expiry, applicants must wait six months before reapplying.
More information: Digital Nomads Croatia
Greece: Established program with long-term tax benefits
- Total employer cost (€60k gross): €73,884
- Visa requirement: €42,000/year (€3,500/month)
- Avg. developer salary: €39,200
Greece’s employment structure brings moderate employer contributions, though employee-side deductions have a big impact on employee take-home pay (download the full eBook to gain deeper insights into these metrics).
The Digital Nomad Visa requires a two-step process: an initial Type D visa for entry, followed by a residence permit application. This structure means employees can stay beyond the initial 12-month visa period, with processing typically taking 10 working days for the initial visa. The residence permit can be made valid for two years and is renewable.
Non-tax residents (staying under 183 days) pay no Greek tax on foreign income. Those who stay longer and become tax residents can access a 50% reduction on income tax for up to seven years.
More information: Hellenic Republic
Portugal: D8 visa & competitive local hiring
- Total employer cost (€60k gross): €61,357
- Visa requirement: €47,400/year (€3,950/month)
- Avg. developer salary: €24,700 gross
Romania offers employers the lowest total costs, not just out of this digital nomad analysis, but out of our entire 36-country study. With minimal employer-side contributions keeping the total outlay close to the gross salary figure, Romania presents an attractive proposition for employers looking to keep costs low.
Since 2022, Romania has been attracting remote workers with its fast-growing tech hubs in Bucharest and Cluj-Napoca, where modern coworking spaces and digital infrastructure meet centuries-old architecture. The country has invested heavily in internet connectivity, now ranking among Europe’s fastest.
The Long-Stay D/AS visa allows remote workers to stay for up to one year, renewable for another year. An important note is that the income requirement adjusts with the national average salary, and the current requirement means employees need to bring in at least three times this benchmark for the six months before application.
More information: Romanian Ministry of Foreign Affairs e-Visa
Romania: Most cost-effective for employers
- Total employer cost (€60k gross): €75,350
- Visa requirement: €41,760/year (€3,480/month)
- Avg. developer salary: €31,200
Portugal, specifically Lisbon, has become one of Europe’s key digital nomad hotspots in recent years. The D8 visa is what allows non-EU professionals working for foreign companies to legally reside and work remotely from Portugal. It offers pathways for both temporary stays (up to one year) or longer-term residency (a two-year permit, renewable).
It’s important to note that the original Non-Habitual Resident (NHR) tax regime has now closed for new applicants. However, there’s a newer tax incentive (often referred to as the NHR 2.0) that could offer benefits. If new residents meet certain professional criteria, they might gain access to helpful tax advantages, making Portugal more attractive for top talent (given its typically high income tax rates). For the D8 visa specifically, workers need a monthly income of at least €3,480.
Note: Boundless supports the NHR 2.0 scheme. If you’re interested in learning more, contact our team.
More information: AIMA
Spain: High costs with tricky labour laws
- Total employer cost (€60k gross): €79,637
- Visa requirement: €33,120/year (€2,760/month)
- Avg. developer salary: €36,800
Spain’s Digital Nomad Visa comes with higher employer contributions but offers something unique: visa holders can work up to 20% of their time for Spanish companies. This flexibility is rare among digital nomad visas and could be useful for employees who occasionally need to engage with local clients.
The programme also accommodates families (including dependent parents), with income thresholds increasing by €875 for the first family member and €292 for each additional one. Initial permits run for one year, renewable in two-year increments, with permanent residency possible after five years.
Eligible employees may also be able to access Spain’s popular “Beckham Law,” reducing their tax to a flat 24% on income up to €600,000 versus progressive rates approaching 50%.
More information: Exteriores
A key consideration for EOR use in Spain: We’ve covered extensively why current EOR setups are non-compliant in Spain. If this is a route you’re exploring, we strongly suggest taking a very close look at all the compliance details before moving forward.
- Total employer cost (€60k gross): €80,430
- Visa requirement: €54,000/year (€4,500/month)
- Avg. developer salary: €31,900
Estonia is well-known for its highly advanced digital infrastructure, making it an attractive location for tech-savvy professionals. Its capital, Tallinn, is a vibrant hub for fintech and cybersecurity, but it’s important to know that Estonia’s digital nomad visa has a high monthly gross income requirement of €4,500. This is the highest in our analysis. On the employer cost side, contributions are fairly predictable yet high, with a typical rate of 25% of the gross salary.
The Estonian D-visa for digital nomads grants a 12-month stay with Schengen travel rights, and processing is often quite quick, usually within 15-30 days. Family members can also apply for D-visas, with options for residence permits once they’re settled, which is helpful for employees relocating with families.
More information: Ministry of Foreign Affairs
Italy: Highest employment costs
- Total employer cost (€60k) gross: €88,326
- Visa requirement: €28,000/year (€2,333/month)
- Avg. developer salary: €44,200
Italy tops this analysis with the highest employment costs for a €60,000 salary. Interestingly, it actually ranks second behind France in our comprehensive study of 36 European countries. Download the full picture on European hiring costs.
Launched in April 2024, Italy’s digital nomad visa is one of the newer programmes on the continent. The income requirement sits at €28,000 annually, which is relatively modest compared to other countries. However, Italy focuses on attracting quality talent, with applicants requiring a three-year degree, professional qualifications, or 3-5 years of relevant experience.
Unlike traditional Italian work permits, the digital nomad visa bypasses quota limitations and doesn’t require a Nulla Osta, significantly streamlining the application process.
More information: Ministry of Foreign Affairs
3 tips for employers hiring digital nomads
01 | Factor in the total cost of employment, not just salary
Don’t get caught off guard by the extra costs. As our analysis shows, employer contributions can add anywhere from 2% (Romania) to 47% (Italy) on top of the base salary. Always calculate the total employer cost when budgeting for new hires, and remember that these costs vary dramatically across countries.
02 | Understand visa requirements vs. Competitive salaries
A country’s visa income threshold doesn’t necessarily reflect competitive local salaries. For example, Estonia requires €54,000/year (€4,500/month) for visa eligibility, but the average developer salary is €31,900. This means you may need to pay significantly above local market rates to attract talent who can qualify for digital nomad visas.
03 | Plan for compliance complexity
Each country has unique employment laws, tax obligations, and visa requirements. What works in one location may be non-compliant in another. Spain, for instance, has particularly complex labour laws that make traditional EOR setups risky. Always research local compliance requirements thoroughly before making hiring decisions.
Ready to hire an international employee?
Whether you’re making your first international hire or scaling to your 10,000th employee, Boundless is here to guide you through every step.
As an Employer of Record (EOR) focused on compliance excellence and exceptional customer service, we handle the complex legal and administrative requirements so you can focus on building your team. We bring a:
- Compliance-first approach: We ensure your international hiring meets all local employment laws and regulations
- Exceptional customer service: Dedicated support teams that understand the nuances of global employment
- Local expertise: We provide the insights and support you need to navigate various local markets successfully succeed
Ready to expand your team globally? Contact our team today to learn how Boundless can simplify your international hiring process and ensure you’re compliant from day one.
FAQs
In 2025, the highest employment costs are found in Norway (€85,222), Luxembourg (€84,255), and Germany (€81,200). These higher totals reflect strong salary levels and substantial employer social contributions.
Developers in Switzerland, the United Kingdom, Luxembourg, Ireland, and Malta enjoy the highest net pay after taxes. In these countries, mid-level developers typically take home €45,000–€50,000 annually.
The most cost-effective markets include Romania (€25,255 total cost), Ukraine (€29,402), and Serbia (€29,133). Employers in these regions benefit from lower gross salaries and lighter social contribution requirements.
Hiring a mid-level software developer in Europe can cost anywhere from €25,000 to €85,000 per year, depending on the country. Norway, Luxembourg, and Germany are the most expensive markets, while Romania, Serbia, and Ukraine are among the most affordable.
The making available of information to you on this site by Boundless shall not create a legal, confidential or other relationship between you and Boundless and does not constitute the provision of legal, tax, commercial or other professional advice by Boundless. You acknowledge and agree that any information on this site has not been prepared with your specific circumstances in mind, may not be suitable for use in your business, and does not constitute advice intended for reliance. You assume all risk and liability that may result from any such reliance on the information and you should seek independent advice from a lawyer or tax professional in the relevant jurisdiction(s) before doing so.
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