So you’re an IT professional weighing your options in Europe, and the big question keeps popping up: should you go contract or permanent? It’s a decision that affects not just your paycheck, but your lifestyle, stress levels, and long-term career trajectory. Let’s dive into what this choice really means for you in Poland, Hungary, Spain, and Portugal.
The Real Talk About Money
Here’s the thing: when someone throws a salary number at you, it’s just the beginning of the story. Your actual take-home pay depends on a maze of factors—taxes, social contributions, deductions, and more. And trust me, these vary wildly across Poland, Hungary, Spain, and Portugal.
That’s where partnering with us at get-talent.eu, an experienced recruitment agency in Europe, makes all the difference. We’ll break down the real numbers for you, not just the shiny gross salary that looks great on paper but might leave you disappointed when the actual payment hits your account.
Contract roles typically dangle higher rates in front of you—and for good reason. You’re covering your own benefits, dealing with administrative headaches, and living with the uncertainty of what comes after your current gig ends. On the flip side, permanent positions offer that sweet peace of mind: steady income, paid vacation, sick leave, and someone else handling your taxes and insurance. But yes, usually at a lower base rate.
Contract vs. Permanent: Quick Comparison
| Aspect | Contract | Permanent |
| Gross Income | 20-40% higher | Base level |
| Job Security | Project-based | Long-term stability |
| Benefits | Self-managed | Employer-provided |
| Paid Leave | None (unpaid time off) | 20-26 days/year |
| Flexibility | High – choose projects | Limited by role |
| Admin Work | Significant (taxes, invoicing) | Minimal |
Let’s Get Country-Specific
Poland: The Rising Star
Poland’s IT scene is absolutely booming right now. Whether you’re eyeing Warsaw’s corporate giants, Kraków’s startup ecosystem, or Wrocław’s growing tech community, opportunities are everywhere. A specialized staffing agency in Poland can be your secret weapon here, especially when navigating the attractive IP Box tax regime—this little gem can seriously reduce your tax burden on software development income.
For contractors, Poland offers flexible business structures like sole proprietorship or setting up your own limited company. The best part? Compared to Western Europe, even permanent positions here come with relatively friendly tax rates. Working with a staffing agency in Poland that understands both paths means you’ll actually understand which structure maximizes your net income based on your specific situation.
Hungary: The Balanced Approach
Hungary keeps things interesting with its flat income tax rate. For contractors, there’s the KATA simplified tax system—though fair warning, there have been some recent changes you’ll want to know about. Budapest is packed with international companies setting up their development centers, and honestly, the quality of life here is pretty amazing for the cost.
Permanent employees in Hungary get solid social benefits, and the tax burden won’t make you cry compared to many EU countries. At get-talent.eu, we can help you compare what your actual monthly take-home looks like under different scenarios, because that flat tax rate plays out differently depending on your income level and situation.
Spain: Sun, Lifestyle, and Complex Taxes
Let’s be honest—Spain is appealing for reasons beyond just the paycheck. Barcelona and Madrid offer incredible lifestyle benefits, amazing food, and vibrant tech communities. But the financial side? It’s more complicated than Poland or Hungary.
Spanish contractors deal with progressive tax rates that can climb pretty high as you earn more. The autónomo system (self-employment) requires careful planning for those social security contributions. Permanent employees get comprehensive labor protections and benefits, which is great, but the trade-off between security and net income is more pronounced here. This is exactly why working with a recruitment agency in Europe that understands Spanish tax law inside and out is crucial.
Portugal: The Digital Nomad Favorite
Portugal has been making waves in the tech world, and Lisbon has transformed into a major hub for startups and scale-ups. The famous NHR (Non-Habitual Resident) regime has attracted countless IT contractors over the years, though recent changes mean you’ll want current information before making assumptions.
Contractors here can explore setting up unipessoal companies (single-person limited companies), while permanent employees enjoy strong labor protections and a reasonable tax environment, especially if you’re earning in the mid-range. The lifestyle factor in Portugal is huge—many IT professionals cite work-life balance as a major reason for choosing this market.
Estimated Net Income: What You Really Take Home
Here’s a simplified snapshot of what you might expect to keep from your gross income in each country. Remember, these are estimates—your actual numbers depend on your specific situation, deductions, and structure.
| Country | Contractor Net % | Permanent Net % | Key Advantage |
| Poland | 65-75% | 62-68% | IP Box tax regime |
| Hungary | 60-70% | 60-65% | Flat tax rate |
| Spain | 55-65% | 58-63% | Strong labor protection |
| Portugal | 60-70% | 60-66% | Lifestyle & quality of life |
Note: These percentages are estimates based on typical scenarios. Your actual net income varies based on your exact salary level, deductions, family situation, and chosen business structure. At get-talent.eu, we can calculate your specific take-home pay.
Beyond the Numbers: What Really Matters
Sure, contractors often pocket 20-40% more in net income compared to permanent employees at equivalent gross rates. But here’s what the numbers don’t tell you: Can you handle the stress of gaps between contracts? Do you enjoy managing administrative tasks, or will that drive you crazy? Are you at a life stage where stability matters more than maximizing income?
If you’re supporting a family, that permanent position with its predictable income and comprehensive benefits might be worth more than the higher contractor rate. If you’re young, mobile, and love the variety of different projects, contracting could be your perfect fit. There’s no universal right answer—it’s about what works for your life right now.
Quick Decision Guide: Which Path Fits You?
| Consider Contract Work If You… | Consider Permanent Work If You… |
| ✓ Want to maximize short-term income | ✓ Value stability and predictability |
| ✓ Enjoy variety and different projects | ✓ Prefer not to handle admin/accounting |
| ✓ Have financial cushion for gaps | ✓ Have financial commitments (mortgage, family) |
| ✓ Don’t mind managing taxes and insurance | ✓ Want paid vacation and sick leave |
| ✓ Can handle income uncertainty | ✓ Value long-term career development |
| ✓ Have specialized, in-demand skills | ✓ Prefer comprehensive health benefits |
| ✓ Want control over work schedule | ✓ Seek structured career progression |
How We Can Help
This is where we come in. At get-talent.eu, we’re a specialized recruitment agency in Europe, and we’ve helped countless IT professionals navigate exactly these decisions across Poland, Hungary, Spain, and Portugal. We’ll show you the real math—what you’ll actually take home after all deductions, how benefits compare in monetary terms, and what tax optimization strategies might work for your situation.
Think of us as your financial translator and career advisor rolled into one. We understand the nuances of each market, have connections with both direct employers and companies needing contractors, and can present you with concrete options rather than theoretical advice. Whether you need a staffing agency in Poland to set up your contractor business properly or want to understand permanent opportunities across multiple countries, having us in your corner changes the game.
Making Your Decision
Start by being honest with yourself about your priorities. List out what matters most: income, stability, flexibility, lifestyle, career growth, or something else entirely. Then, reach out to us at get-talent.eu to get real numbers for your specific skills and target locations.
Look at the whole package: salary, benefits, work-life balance, career development opportunities, and the lifestyle each location offers. Remember, the best choice for you might be different next year, and that’s okay. Many IT professionals switch between contract and permanent roles throughout their careers as their priorities evolve.
The IT market across Poland, Hungary, Spain, and Portugal is dynamic and full of opportunities. Your expertise is valuable, and you deserve to make an informed choice that maximizes both your income and your satisfaction. Whether you go contract or permanent, make sure you’re doing it with all the facts in hand and expert guidance to back you up.
Ready to explore your options? Connect with us at get-talent.eu to get personalized insights, real salary comparisons, and opportunities that match your goals. Your next career move is too important to leave to guesswork—let’s make it count together.