I know that in Madrid salaries are around 2000€ month or more, here in Mallorca it can be something less I think more around 1500€ (it used to be much more of course but everything is going down pretty fast). Any way is a bargain compared to US salaries, and I think salaries will go further down during this year(although maybe not so much in programers as is a realatively hot market here too). It is also true that you receive what you pay for and good programers are earning much more than that, and always in short supply.

Any way I´ll tell you in a couple of weeks, as I am planing to hire 2 or 3 programers along this month.