Prostitution is legal in the Netherlands. However, prostitutes must be at least 18, while for non-commercial sex the age of consent is 16. Clients must be at least 16. Prostitutes are considered bona fide entrepreneurs; they pay taxes and are otherwise treated like any other self-employed tradesperson. Advertising the services is likewise tolerated. Health and social services are readily available, but the women are not required to undergo regular health checks. The women are self-employed and rent the rooms for some 100-150 euros per 8 hour shift, which includes closed-circuit security . Condoms are used for all sexual contact. Twenty minutes of sex cost about 40 to 50 euros. Despite the legalization, some of the working women are still illegal immigrants.

Some municipalities in the Netherlands would like a "zero policy" for brothels, i.e. not allow any, on moral grounds, but by law this is not possible. However, regulations, including restrictions in number and location are common. Whether a zero policy on urban planning grounds is allowed is still unclear.

The largest and best-known red-light district in the Netherlands is De Wallen, also known as Walletjes or Rosse Buurt.