The Highly Skilled Migrant Visa in the Netherlands: Everything You Need to Know

The Highly Skilled Migrant (HSM) visa is one of the most sought-after residence permits for skilled professionals looking to work in the Netherlands. This visa allows talented, non-EU professionals to live and work in the country under favorable conditions while also offering the unique benefit of running a freelance (sole proprietorship) business on the side.

With the Dutch economy increasingly reliant on international talent, the government has set clear guidelines for salary thresholds and eligibility criteria. 

If you’re considering moving to the Netherlands under this scheme, this guide covers everything, from who can apply, salary requirements for 2025, and how you can work as both an employee and a freelancer while holding an HSM visa.

What Is the Highly Skilled Migrant Visa?

The Highly Skilled Migrant Visa (HSM) is a residence permit tailored to attract international talent to the Netherlands. This visa is ideal for professionals whose skills and expertise are in high demand across industries such as tech, engineering, healthcare, and finance. The goal? To boost the Dutch economy with skilled individuals while offering you a stable pathway to work and live here.

One of the reasons the HSM visa stands out is its simplicity and flexibility. Unlike other work permits, it doesn’t require a separate work authorization (TWV). Employers who are recognized sponsors can fast-track your application through the Dutch Immigration and Naturalisation Service (IND).

The HSM visa doesn’t box you in—it allows you to take advantage of the Netherlands’ entrepreneurial spirit by starting a side business while still working for your main employer.

What makes this Dutch HSM Visa so attractive?

• No work permit needed
• Fast-tracked residence permit
• Ability to start a side business
• Pathway to permanent residency
• Eligibility for the 30% tax ruling

With a basic understanding of these key benefits, we can begin looking at who can apply for the HSM visa, and how to get under the Dutch scheme.

Who can apply for the Highly Skilled Migrant Visa?

Before jumping into the bureaucratic process of applying, it’s important to understand that not everyone qualifies for HSM. The Dutch government has worked hard to ensure that the Visa is obtainable and valuable to as many as can logically fall under it.

To qualify for an HSM visa, there’s a few key criterium you’ll need to meet:

1. Job offer from a recognized sponsor:
   The first step is securing employment with a Dutch company that is recognized by the IND as a sponsor. This is non-negotiable—your employer must have this certification to sponsor your visa.
   
   
2. Minimum salary requirements:
   Each year, the Dutch government updates the salary thresholds for HSM visa holders. These thresholds depend on your age and situation.
   As of January 1, 2025:
   • Professionals under 30: €4,171 per month (gross, excluding holiday allowance).
   • Professionals 30 or older: €5,688 per month.
   • Recent graduates (holding an orientation year visa): €2,989 per month.

💡 Important note: These salaries are based on full-time employment (at least 30 hours per week).

1. Valid employment contract:
   Your employment contract must outline your position, salary and working hours––this demonstrates that your role aligns with the HSM visa criteria.
   
   
2. Relevant qualifications:
   While having a university degree isn’t mandatory, it can significantly strengthen your application—especially for technical or specialized roles.

Can You Freelance on the side when on a Highly Skilled Migrant Visa?

Absolutely! One of the most exciting aspects of the HSM visa is the freedom to start your own freelance business (as a sole proprietorship, or eenmanszaak) on the side. This means you can explore new passions, build a side hustle, or even test the waters for future self-employment.

There’s just one rule to keep in mind: your freelance work cannot replace your primary job. You still need to meet the HSM salary requirements through your employer.

How to register as a Freelancer (sole proprietorship) while holding an HSM Visa

1. Register Your Business at the Chamber of Commerce (KVK)
   • Choose a business name and complete the eenmanszaak (sole proprietorship) registration.
   • Pay the registration fee (€82.25).
   • Receive your KVK number for invoicing and tax purposes.
2. Obtain a VAT (BTW) Number
   • Upon KVK registration, your details are automatically sent to the Dutch Tax Authority (Belastingdienst).
   • You will receive a VAT number within 10 days, allowing you to charge VAT on invoices.
3. File Taxes as a Freelancer
   • Declare your freelance income separately in your tax return.
   • Submit quarterly VAT declarations if required.

💡 Tip: Since your full-time job satisfies the HSM visa requirements, your freelance income is taxed separately and does not affect your visa status.

Taxes & social security for Highly Skilled Migrants

Income tax: As a highly skilled migrant, your salary is subject to Dutch income tax, ranging from 35.82% to 49.5% (2025 rates). If eligible, you can benefit from the 30% ruling, which allows you to exclude 30% of your gross taxable salary from income tax for up to five years—significantly reducing your tax liability.

VAT for freelancers: If you freelance on the side, you’ll need to file quarterly VAT (BTW) declarations, unless you qualify for the Small Business Scheme (KOR). KOR exempts you from VAT filings if your revenue stays below €20,000 annually and you sell primarily to Dutch consumers.

Social security contributions: HSM visa holders contribute to Dutch social security, granting access to essential benefits like healthcare, unemployment benefits, and state pension contributions. These deductions ensure you’re covered for medical care, financial support during unemployment, and retirement planning.

Steps to apply for the Highly Skilled Migrant Visa

The application process for an HSM visa is handled primarily by your employer. Here’s how it works:

1. Employer sponsorship & job offer

Your employer must be a recognized IND sponsor and submit a visa application on your behalf.

2. IND application & decision

• If approved, the IND issues a residence permit for employment.
• Processing times are approximately 2-4 weeks.

3. Collect Your residence permit

Once in the Netherlands, visit the IND office to collect your permit. You will also need to:

• Register with the municipality (gemeente) and receive your BSN (citizen service number).
• Open a Dutch bank account.

Transitioning from an HSM Visa to Permanent Residency

One of the long-term benefits of the HSM visa is that it opens the door to permanent residency or citizenship. After five years of legal residence in the Netherlands, you can apply for:

• Permanent Residency (Type V Permit): This allows you to stay in the Netherlands without employer sponsorship.
• Dutch Citizenship: If you meet the integration requirements and pass the inburgeringsexamen (civic integration exam), you can apply for naturalization.

How Xolo can help highly skilled migrants who freelance

Balancing a full-time job and a freelance business might seem overwhelming, but that’s where Xolo comes in. Our platform is designed to simplify the administrative side of running your business, so you can focus on what you do best.

With Xolo, you can:

• Register your freelance business hassle-free: We’ll guide you through the KVK registration process.
• Manage your VAT and tax filings: Never miss a deadline with our automated systems.
• Streamline your invoicing: Create professional invoices for clients worldwide.
• Access expert support: Get advice on Dutch tax rules and compliance tailored to your situation.

Final thoughts: Is the Highly Skilled Migrant Visa right for you?

The Highly Skilled Migrant Visa is a fantastic opportunity for talented professionals to build their careers in the Netherlands. With competitive salaries, a fast-track process, and the freedom to also run a freelance business, it offers the best of both worlds.

Whether you’re looking to freelance alongside your job or transition to full-time self-employment, the HSM visa provides flexibility and long-term opportunities.

Thinking of starting a business while working under an HSM visa? Let Xolo handle the admin so you can focus on growing your career! 🚀 Get started today!