Netherlands or Germany for a European space team? A comparison for US companies
General information as at , not legal or tax advice.
General information as at 9 November 2026, not legal or tax advice.
US space companies hiring in Europe in 2026 often compare the space companies Netherlands with Germany. The Netherlands hosts ESTEC in Noordwijk, ESA’s largest site. Its space sector supports more than 10,000 jobs, the Dutch government said in October 2025. Bremen’s aerospace sector employs about 12,000 people, according to Bremen’s development agency WFB. This guide compares the two.
What do the Netherlands and Bremen offer space companies?
The Netherlands offers direct access to ESA’s technical centre and a national space agency. Bremen offers manufacturing depth instead. Its products include the Ariane upper stage and Galileo navigation work, says WFB. In addition, Bremen hosted ESA’s Ministerial Council in November 2025.
On the Dutch side, the Netherlands Space Office became the Netherlands Space Agency (NLSA) on 3 March 2026. Around Noordwijk, the space industry in the Netherlands also draws on Leiden, Delft and The Hague. Our space sector talent map shows where those clusters sit.
However, the two headline figures measure different things. Specifically, the Dutch figure counts space jobs nationwide. By contrast, the Bremen space industry figure also includes aviation, such as equipping Airbus wings.
How do permits compare for space companies in the Netherlands and Germany?
Both countries offer a salary-based route for non-EU specialists, including US citizens. In the Netherlands, only an IND recognised sponsor can apply for a highly skilled migrant permit. In Germany, the employee usually applies for an EU Blue Card or another skilled-worker permit. Some German routes also need approval from the Federal Employment Agency.
For 2026, the IND threshold for a highly skilled migrant is €5,942 gross a month from age 30. Below 30, it is €4,357. Similarly, the EU Blue Card in the Netherlands starts at €5,942. The IND’s statutory decision period for a highly skilled migrant application is 90 days.
Germany’s 2026 EU Blue Card threshold is €50,700 a year, says the federal portal Make it in Germany. A reduced €45,934.20 applies to shortage occupations and recent graduates, with agency approval. Our guide on how to get a German work permit covers the other routes.
Octagon is an IND recognised sponsor. As a result, it can employ and sponsor specialists in the Netherlands before your own entity exists. Our highly skilled migrant guide for the Netherlands sets out the requirements.
How do employment rules and costs compare?
Sick pay creates the largest gap. A Dutch employer pays at least 70% of wages for up to 104 weeks, says the Netherlands Enterprise Agency. A German employer pays full salary for six weeks under section 3 of the EntgFG. After that, statutory health insurance usually takes over. On the other hand, German staff can form a works council much earlier.
| Factor | Netherlands (Noordwijk) | Germany (Bremen) |
|---|---|---|
| Space anchor | ESTEC, ESA’s largest site | Ariane upper stage and Galileo work |
| Sector jobs | More than 10,000 space jobs nationwide (2025) | About 12,000 aerospace jobs in Bremen (2026) |
| Route for non-EU specialists | Highly skilled migrant permit through an IND recognised sponsor | EU Blue Card or skilled-worker permit |
| 2026 salary threshold | €5,942 a month from age 30; €4,357 under 30 | €50,700 a year; €45,934.20 reduced |
| Employer sick pay | At least 70% for up to 104 weeks | Full pay for six weeks, then health insurance |
| Holiday pay | Holiday allowance of at least 8% | No statutory holiday allowance |
| Works council | Mandatory from 50 people | Can be elected from five permanent employees |
Sources: IND, Make it in Germany, business.gov.nl (holiday allowance), BetrVG s. 1, WOR art. 2, WFB.
Both gaps affect your budget. For example, the Dutch holiday allowance adds at least 8% to annual pay. The long sick pay period also makes absence planning worthwhile from the first hire.
Can a space team work across both countries?
Yes, but each employee belongs to one social security system at a time. EU coordination rules set the test. A person working in both stays insured where they live if at least 25% of their work happens there. An A1 certificate confirms which system applies.
Payroll and tax follow the work as well. A Dutch company whose staff work regularly in Germany may create a permanent establishment there. It may then need to withhold German Lohnsteuer, the wage tax. Whether that happens depends on the facts. Therefore, take tax advice first.
An employer of record in Germany also works differently. German law usually treats it as temporary agency work, which needs a licence under the AÜG. The same worker can then serve one hirer for at most 18 consecutive months.
Which location suits US space companies: the Netherlands or Germany?
Let the work decide. Engineering that supports ESA programmes and proposals often fits Noordwijk, close to ESTEC. By contrast, manufacturing and supply-chain roles often fit Bremen. Next, compare your first five hires on permits, salary thresholds, sick pay risk and works council rules. You can always add the second country later.
Geographical return matters too. ESA places contracts largely in line with what each member state contributes. So the country where your team sits affects which national share its work counts towards. Our article on ESA geographical return explains the rule.
For company set-up, see our Netherlands vs Germany vs Belgium comparison. For the wider case, read why US companies choose the Netherlands for a European headquarters. At Space Tech Expo Europe on 17–19 November 2026? Our Bremen guide has the details.
How Octagon supports space companies in the Netherlands and Germany
Choosing Noordwijk or Bremen is a question about people: who employs them, and under which rules. Octagon has moved and employed people across European borders since 1987. For a US space company, we act as your HR function in Europe until you build your own. If the team comes with an acquisition, our post-merger integration checklist for Europe sets out the HR steps. To plan your first team, contact Octagon Professionals at sales@octagon.nl.
Frequently asked questions
Is the Netherlands or Germany better for a space company?
Neither country is better for every company. The Netherlands suits teams that work closely with ESA, because ESTEC sits in Noordwijk. Bremen suits manufacturing and launcher or satellite supply-chain work. Compare permits, sick pay liability and works council rules for your first hires. Then choose the country that fits the work your team will do.
Where is ESA’s technical centre?
ESA’s technical centre, ESTEC, is in Noordwijk on the Dutch coast, near Leiden in the province of South Holland. ESA describes it as the largest of its sites and its technical heart. Most ESA projects start there, and it runs a spacecraft test centre. As a result, many Dutch space companies, research institutes and suppliers work in the surrounding region.
Can a Dutch company employ staff in Germany?
Yes, but German rules then apply to the job. The employee usually joins German social security. Regular work in Germany can also create a permanent establishment with German payroll duties. Using an employer of record in Germany usually counts as temporary agency work. That needs a licence and limits each assignment to 18 months.
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More guides for acquirers in Europe
- Comité social et économique (CSE): consulting employees before a deal in France
- Works council advice on an acquisition in the Netherlands: when it applies and how it shapes the timeline
- Betriebsrat: works councils in Germany explained for US acquirers
- ESA geographical return: why US space companies buy in Europe
- Post merger integration checklist for Europe: the HR steps from signing to Day 100
- Feestdagen 2027: public holidays in the Netherlands and what employers must give
Need expert guidance?
Our team of HR, legal, and compliance specialists can help you manage Dutch employment complexity.