Hauer was born to drama teachers Arend and Teunke, and grew up in Amsterdam. Since his parents were very occupied with their careers, he and his three sister were raised mostly by nannies. At the age of 15, Hauer ran off to sea and spent a year scrubbing decks aboard a freighter. Returning home, he worked as an electrician and a carpenter for three years while attending acting classes at night school.
He went on to join an experimental troupe, with which he remained for five years before he was cast in the lead role in the very successful 1969 television series Floris, a Dutch Ivanhoe-like medieval action drama. The role made him famous in his native country.
Hauer's career changed course when director Paul Verhoeven cast him as the lead in Turkish Delight. Hauer made his American debut in the Sylvester Stallone vehicle Nighthawks.
In 1999, Hauer was awarded the Dutch “Best Actor of the Century Rembrandt Award”.
Hauer is a dedicated environmentalist. He fought for the release of Greenpeace's co-founder, Paul Watson, who was convicted in 1994 for sinking a Norwegian whaling vessel. Hauer has also established an AIDS awareness foundation called the Rutger Hauer Starfish Foundation. He married his second wife, Ineke, in 1985 (they had been together since 1968); and he has one child, actress Aysha Hauer, who was born in 1966 and who made him a grandfather in 1988. His grandson Leandro Maeder is a fashion model and is currently the face of Dsquared2.
In April 2007, he published his autobiography All Those Moments: Stories of Heroes, Villains, Replicants, and Blade Runners (co-written with Patrick Quinlan) where he discusses many of his movie roles.