Highly skilled migrant Netherlands: a hiring guide

Fewer highly skilled migrants now move to the Netherlands. New CBS figures show 14,000 knowledge migrants arrived from outside the EU in 2025, down from 26,000 in 2022. Meanwhile, overall immigration fell for a third straight year. Therefore, employers must work harder to attract, relocate, and keep international talent.

Why are fewer highly skilled migrants coming to the Netherlands?

Several factors drive the decline. Firstly, policy tightened, including the gradual scaling back of the 30% ruling in the Netherlands, a tax break on part of an expat’s salary. Secondly, fewer skilled arrivals mean fewer family members follow. As a result, the talent pool keeps shrinking.

The steepest drop hit workers from India, the largest single group. Smaller declines followed among people from Turkey, Russia, China, and South Africa. Because one in three family migrants join someone who moved for work, the effect compounds year after year.

What does the decline mean for foreign employers?

It means stronger competition for every qualified candidate. Because highly skilled migrants now hold more options, slow or uncertain hiring loses talent to faster rivals. Therefore, a smooth work permit process and a strong relocation experience become real advantages, not nice-to-haves.

The practical barriers remain, too. A non-EU hire still needs visa sponsorship in the Netherlands, a valid work permit, and a compliant contract. Moreover, a foreign company without a Dutch entity cannot run local payroll or employ staff directly.

Retention matters just as much as recruitment. Because the housing market stays tight and reception centres remain full, new arrivals often struggle to settle. Therefore, employers who plan relocation early protect their investment. In turn, a supported hire stays longer and performs sooner.

How do you hire a highly skilled migrant in the Netherlands?

You need three things: legal sponsorship, an approved work permit in the Netherlands, and a compliant employment contract. Companies without a Dutch entity then face a choice. They can set up a subsidiary, engage contractors, or use an employer of record in the Netherlands to hire quickly and stay compliant.

Which hiring route works best for your business?

It depends on your timeline, budget, and risk appetite. A subsidiary gives full control, yet it takes months. Contractors offer flexibility, but they carry misclassification risk. An employer of record delivers speed and compliance without a local entity. The table below compares all three routes.

Hiring route	Setup time	Compliance risk	Best for
Local subsidiary	8–12 weeks	Managed in-house	Large, long-term expansion
Contractors	Fast	High (misclassification)	Short projects only
Employer of record	1–2 weeks	Handled by the provider	Hiring without an entity

How does an employer of record in the Netherlands remove the barriers for hiring a highly skilled migrant?

An employer of record becomes the legal employer, while your hire works only for you. So you keep control of salary, benefits, and management. Meanwhile, the provider handles compliant contracts, payroll services in the Netherlands, tax, and social security. As a result, you hire fast and stay fully compliant.

Octagon holds recognised IND sponsor status. Therefore, it can fast-track Highly Skilled Migrant visas, often within two weeks, and administer the 30% ruling where an employee qualifies.

What are the risks of hiring a highly skilled migrant without compliance support?

The risks are real and costly. Without proper support, companies face visa delays, failed permits, and misclassified contractors. Furthermore, Dutch rules on sick pay and pensions create long-term liabilities. Therefore, expert HR support protects both your budget and your talent. Common problems include:

• Visa and work permit errors that delay start dates or lose candidates.
• A poor relocation experience that pushes new hires to leave early.
• Contractor misclassification, which Dutch authorities enforce under the Wet DBA.
• Sick pay liability of up to 70% of salary for as long as two years.
• CAO or pension errors that trigger large retroactive collections.

Octagon: your global enabler for talent movement

Octagon Professionals helps companies move talent across borders with compliance. For 39 years, it has built HR solutions on compliance and client success. Therefore, it removes the risks that derail international hires, from visa delays to pension errors. Meanwhile, you keep full control of salary, benefits, and working arrangements.

Running local HR, accounting, and compliance in-house can exceed €70,000 a year. Octagon removes that burden and adds transparency at every step. So a tighter market becomes a hiring advantage, not a barrier. To hire or retain a highly skilled migrant in the Netherlands, contact Octagon Professionals.

Frequently asked questions

What is a highly skilled migrant in the Netherlands?

A highly skilled migrant is a non-EU worker who fills a shortage role above a set salary threshold. Dutch employers call them knowledge migrants, or kennismigranten. They hold a residence permit tied to a recognised sponsor. In addition, many qualify for the 30% ruling on part of their salary.

How long does a work permit in the Netherlands take?

With a recognised sponsor, a Highly Skilled Migrant permit often takes around two weeks. Without one, timelines stretch and risk climbs. Therefore, many foreign employers use an employer of record that already holds IND sponsor status. This speeds up visa sponsorship in the Netherlands considerably.

Do I need a Dutch entity to hire employees?

No, you do not need one. An employer of record in the Netherlands employs staff on your behalf. So you skip the eight-to-twelve-week task of building a subsidiary. You keep daily control, while the provider manages payroll services in the Netherlands and local compliance.

What is the 30% ruling in the Netherlands?

The 30% ruling is a tax benefit for eligible expats. It lets employers pay part of a salary free of income tax. However, the government keeps scaling it back gradually. Therefore, a qualified provider should check eligibility and handle the application for each new hire.

What relocation services do highly skilled migrants need?

New hires usually need help with housing, registration, banking, and cultural integration. Meanwhile, tight housing supply makes early support more important. As a result, employees settle faster and stay longer with your business.

What is the difference between a subsidiary and an employer of record?

A subsidiary is your own legal entity in the Netherlands, so you handle every filing yourself. An employer of record employs staff for you instead. Therefore, you hire in one to two weeks rather than months. In addition, the provider carries the compliance and payroll workload.