Locations · Madrid, Spain

Software Development Company in Madrid — Nearshore Engineering Teams

Senior nearshore engineering pods for Madrid scale-ups, banks, and AI-first founders — CET workday, GDPR + LOPDGDD aligned, contracted through our German GmbH. We build AI products, fintech rails, and Spain–LATAM platforms for clients who need senior engineers shipping in three weeks, not three quarters. Dedicated teams from 12,000 EUR/month, MVPs from 25,000 EUR, fractional CTO from 4,500 EUR/month.

Madrid is the fastest-growing tech hub in Southern Europe in 2026. Microsoft committed 6.69 billion EUR to a new Spanish cloud region anchored in the Madrid metro, AWS opened the eu-south-2 region with three availability zones in Aragon and a Madrid edge presence, and Telefónica Tech is consolidating its AI and cybersecurity divisions in the Distrito Telefónica campus. BBVA finished its core-banking migration to Google Cloud and is now hiring aggressively for AI-engineering and platform roles — pushing senior compensation in the city up 14 percent year-over-year. Santander, CaixaBank, Mapfre, Iberdrola, and Repsol all run major digital programmes from Madrid headquarters, and the LATAM bridge that no other European capital offers means Madrid scale-ups can launch in Mexico City and Bogotá on the same product stack. The pressure on engineering hiring is real, and that is where a nearshore senior partner closes the gap.

Why nearshore vs hiring locally in Madrid

Madrid senior comp is climbing

A senior backend engineer in Madrid in 2026 costs 55,000 to 85,000 EUR base, plus 15 to 25 percent variable and equity, plus 30 percent employer social charges. Total loaded cost lands at 100,000 to 140,000 EUR per FTE per year. A YuSMP nearshore senior is 115,000 to 150,000 EUR fully loaded with zero overhead and zero notice-period risk.

Hiring takes 4 to 6 months

Spanish notice periods for senior roles run 1 to 3 months, plus 6 to 10 weeks of interview cycles, plus offer-to-start. Six months from req to first commit is normal. We ramp a pod in three weeks: discovery week, two-week onboarding, then PRs in week four.

No SL, no payroll, no leaving risk

No need to set up a Spanish SL just to hire, no Seguridad Social filings, no severance liability under the Estatuto de los Trabajadores. One EUR invoice from our German GmbH, Spanish VAT reverse-charged. Scale down in 30 days if priorities change.

Services we deliver for Madrid clients

AI & LLM product engineering

RAG over Spanish-language corpora, GPT-4 / Claude / Llama-3 integrations with proper guardrails, AESIA-ready conformity packs, AI agents for back-office automation in banking and insurance.

Fintech & payments

PSD2 and PSD3 integrations, Bizum and SEPA Instant rails, Iberpay connectivity, KYC/AML against AEAT and INE registers, Veri*Factu / SII e-invoicing, open-banking aggregators.

Spain–LATAM platforms

Multi-region AWS or GCP topology spanning eu-south-2 and sa-east-1, locale-aware product flows (es-ES / es-MX / es-AR / pt-BR), PIX + OXXO + Mercado Pago alongside Bizum.

EU AI Act compliance

Spain is first to enforce: AESIA is operational in A Coruña. We classify systems by risk tier, write conformity assessments, build the technical documentation pack, and prep for post-market monitoring.

Dedicated teams & staff aug

Two-to-nine person pods of senior full-stack, mobile, data, and DevOps engineers embedded into your Jira and your Slack, with a delivery lead who reports to your VP of Engineering.

Fractional CTO

2 to 8 days per month of senior CTO judgement: hiring plans, architecture review, vendor selection, board reporting, and technical due diligence for funded Madrid founders pre-Series-A through B.

Three scenarios we see weekly from Madrid

Madrid fintech, Series B

Bizum-native consumer wallet wants to launch in Mexico and Colombia. Local product team is 22 engineers and slammed. We embed a 6-person pod for the LATAM build: regional AWS topology, PIX and Mercado Pago integration, es-MX localization, six months to first live transaction in CDMX.

Madrid AI scale-up

Series A SaaS with a GPT-4 product needs AESIA conformity, RAG over a 40-million-document Spanish corpus, and Spanish-government tenancy options. We deliver the RAG stack, the AI Act technical file, and a private-cloud deployment path for public-sector buyers in 14 weeks.

IBEX-35 enterprise, modernization

Insurer running a 2008-era Java monolith on bare-metal in their Madrid DC. We pair with internal architects, strangler-pattern the policy module to Spring Boot on EKS in eu-south-2, retire 380k lines of legacy code in three quarters with zero data loss.

Time-zone, language, and on-site cadence

We run a CET workday (09:00–18:00 Europe/Madrid) with full overlap with your Madrid offices and a four-hour daily overlap with East-Coast US (09:00–13:00 ET) for clients with US investors or partners. Engineers communicate in business English by default and natively in Spanish when you need it — our delivery leads are fluent in both. Quarterly on-site visits to Madrid for embedded teams are included in the retainer, with additional visits for kickoffs, board demos, and incident reviews billed at cost without markup.

Pricing for Madrid engagements

Dedicated team

From 12,000 EUR/month for a 2-person pod. A typical 4-person squad lands at 28,000 to 36,000 EUR/month. Three-month minimum, then month-to-month with 30 days notice.

Fixed-scope MVP

From 25,000 EUR for a 3-month MVP build with discovery, design, engineering, and one production deployment. Milestone-based invoicing in EUR.

Fractional CTO

From 4,500 EUR/month for 2 days of senior CTO advisory per month. Active and Embedded tiers at 8,000 and 14,000 EUR/month.

How we start in Madrid

  1. 01

    Discovery call

    Within 48 hours of inbound. 45 minutes with a senior engineer plus a commercial lead, NDA on request, no slide-deck pitch.

  2. 02

    Proposal & on-site

    Written proposal in 5 to 7 business days with team profile, ramp plan, and price. Optional on-site visit to your Madrid office for stakeholder alignment.

  3. 03

    Kickoff & ramp

    MSA + DPA signed, pod onboarded into your Jira, Slack, and git in week one. First production-quality PRs in week three or four.

  4. 04

    Operating cadence

    Weekly delivery review, bi-weekly sprint demo, monthly written status, quarterly on-site for embedded teams. Scale up or down with 30 days notice.

Frequently asked questions

Why hire a nearshore software development partner if we are already in Madrid?

Madrid is itself a nearshore hub for the rest of Europe, but local hiring still competes with Telefónica, BBVA, Santander Digital, Glovo, Cabify, and the new Microsoft and AWS data-center investments around the metro area. Senior backend salaries in Madrid in 2026 sit at 55,000 to 85,000 EUR base plus 15 to 25 percent variable and equity. A YuSMP nearshore senior costs roughly 9,500 to 12,500 EUR per month fully loaded with no recruiter fees, no benefits administration, no 3 to 6 month notice periods, and no payroll exposure on a Spanish SL. We are CET-aligned, GDPR-aligned, contract through a German GmbH, and can ramp a team in three weeks instead of three quarters.

Can you support Spanish-Latin-America (LATAM) product expansions?

Yes — this is one of the main reasons Madrid clients pick us. Many Madrid-headquartered companies use Spain as the European bridgehead and Mexico, Colombia, Chile, or Argentina as growth markets. We design multi-region architectures (AWS eu-south-2 Spain + us-east + sa-east), localize for es-ES vs es-MX vs es-AR, handle Spanish payment rails (Bizum, SEPA Instant) alongside LATAM rails (PIX, OXXO, Mercado Pago), and write data-residency logic for clients who need to keep EU PII inside the EU while operating across the Atlantic.

What does pricing look like for a Madrid engagement?

Dedicated team retainers start at 12,000 EUR per month for a focused two-person pod (senior full-stack + product engineer) and scale to 45,000 to 80,000 EUR per month for a full squad of six to nine. Fixed-scope MVPs run from 25,000 EUR for a three-month build. Fractional CTO advisory starts at 4,500 EUR per month. All pricing is invoiced in EUR from our German GmbH, with Spanish VAT reverse-charged under the EU intra-Community rules. No setup fees, three-month minimum, then month-to-month with 30 days notice.

Are you compatible with Spanish data-protection and CNMV/Bank of Spain requirements?

Yes. We work to GDPR plus the Spanish LOPDGDD overlay, sign DPAs aligned to the AEPD's standard clauses, and have shipped systems for fintech clients regulated by CNMV (Comisión Nacional del Mercado de Valores) and PSD2/PSD3-licensed entities supervised by Banco de España. For e-invoicing we handle Veri*Factu / SII compliance, and for the upcoming EU AI Act enforcement (Spain's AESIA is the first national AI regulator in the EU) we run conformity gap assessments and prepare technical documentation packs.

How fast can you start, and how does on-site work in Madrid?

Discovery call within 48 hours of inbound. Proposal in 5 to 7 business days. Kickoff in 2 to 3 weeks after signature, including a first on-site visit to Madrid for architecture and team alignment. We come on-site quarterly by default for embedded teams and more frequently for kickoffs, board demos, or incident reviews. Travel inside the EU is included in the retainer for embedded engagements — we do not bill flights or hotels for routine visits.

Ready to ship faster than you can hire in Madrid?

Book a discovery call