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For any Skype contact in Skype for Windows,  you can enable translation and select what language that person speaks and what language that person writes. You can also select what languages you speak and write when communicating with that person.

As of December 2015November 2016, the Skype Translator feature does machine translation of chat messages in over 50 languages. For voice recognition and spoken interpretation, Skype supports Arabic, Chinese, English, French, SpanishGerman, Italian, ChinesePortuguese ,Portuguese Brazilian Portuguese, French Russian and German.Spanish

When having a voice conversation with another Skype user with translation enabled, Skype recognizes the speaker's voices, transcribes the spoken words and shows the transcribed text in the chat window. The text is then translated and shown in the chat, followed by a machine speaking the translated message. It works in near real time and after the call, the transcript of the call can be saved. The machine translation is not perfect, however the ability to have a near real time conversation in another language is impressive.

See the Skype Translator support page on how to setup Skype Translator  :

Watch the Youtube video by Microsoft showing how you can use Skype Translator in your regular Skype

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