View source for Netherlands/Dutch American Friendship Treaty

== What is DAFT? ==
The Dutch American Friendship Treaty (DAFT) is an agreement between the United States and the Netherlands that allows Americans to acquire a two-year Dutch residency for the purpose of  “starting a business." Spouses and minor children can accompany a DAFT visa holder and it offers a path to permanent residency, making it a popular option for Americans moving abroad.

Many types of businesses can qualify under the DAFT. You can start a brick and mortar business selling a product/service, an online business selling a product/service, or you can work as a freelancer/consultant. The most basic requirements are that you are the sole proprietor of the business, that you “invest” ''and maintain'' €4,500 in your business's bank account, and that you are not employed by another entity/company while on the DAFT. Since a broad array of business types can qualify under the DAFT,  this opens up immigration opportunities for people usually not covered by other skill or job-based visas.

=== Useful resources for learning about the DAFT ===
* [https://dutchamericanfriendship.com/ <u>Dutch American Friendship</u>]
* [https://www.reddit.com/r/AmerExit/comments/wvskkg/my_experience_with_the_dutchamerican_friendship/ <u>My experience with the Dutch American Friendship Treaty (reddit)</u>] 
* [https://www.reddit.com/r/IWantOut/comments/95rzk9/dutch_american_friendship_treaty_guide_to_getting/ <u>Guide to getting Dutch American Friendship Treaty (reddit)</u>]
* <u>Update on DAFT visa process (reddit)[https://www.reddit.com/r/AmerExit/comments/thw5jx/update_on_daft_visa_process/ /]</u>
* [https://www.facebook.com/groups/1399449486904859/ <u>DAFThub (Facebook)</u>]

=== Future of the DAFT ===
With current political developments on both sides of this treaty, it's hard to predict whether DAFT, and therefore the information on this page, may be affected. Currently (March 2025) there are no warning signs to indicate that this will occur. But the following legal assessment of such a development may be taken into account when considering the DAFT:

The principle of legal certainty dictates that actions taken under a particular legal justification will not be treated in a different way based on a future change in the law. Specifically, in the case of the DAFT, a change or revocation of the treaty SHOULD NOT be expected to affect the treatment of visas and visa applications made while the current treaty was still in effect. '''If you have made your application and/or received your visa while this treaty remains in force in its current form, then the Dutch government should consider the validity of your visa and its renewals to be subject to those terms, even if the treaty changes before you renew.'''

There is existing legal precedent pertaining to the treatment of British citizens who were residing in NL based on EU freedom of movement at the time of Brexit. In the case of these residents, the Dutch government proactively communicated its assurances that they would be treated as if the freedom of movement was still in force for as long as they continued to reside in the Netherlands. We can therefore expect that in the event of either nation exiting the treaty, DAFT residents in NL will also be treated according to the rules under which they acquired residence, for as long as they maintain that residence.

These assurances would NOT apply to new applicants who make their application AFTER a cancellation or modification of the treaty has taken place. This would include applicants who previously held residency under the DAFT, but who did not continue to renew their residency on time and allowed it to lapse, and are now re-applying after the treaty has been changed.

Since the DAFT is based on a self-employment visa, you can expect that such an applicant could still make their application, but would be subject to the non-treaty requirements for a self-employment visa to the Netherlands. They can therefore be required to demonstrate that their self-employed business adds value to the Dutch economy, a requirement that is waived by the treaty terms, and to make a significantly larger initial investment into that business.

You may want to consider this possibility, and monitor the legal "weather" between these two countries, if you are planning your application for a later date.

== Requirements for applying for the DAFT ==

* You will operate your business between the US and the Netherlands.

* You will start a new business opportunity or a profession in which you have invested a substantial capital (€4500).
* You have a valid travel document (for example a passport).
* You are not a risk to public order and national security.
* You have sufficient and long-term means of support
** ''You must be able to make enough money after obtaining the Visa to stay off of Dutch welfare programs''
* You have not previously stayed in the Netherlands illegally.
* You have not given false information or have withheld important information to support any previous applications.

== Types of Dutch business entities -- eenmanszaak (ZZP) vs besloten vennootschap (BV) ==
There are two main types of businesses in the Netherlands

=== '''The eenmanszaak (ZZP)'''. ===
An eenmanszaak ("one man business") or ZZP (zelfstandige zonder personeel: "independent without staff") is a sole proprietor business.  The most basic type of business classification, especially popular for freelancers and consultants. They are easy and inexpensive to set up, provide income tax advantages up to €100,000 per year, and generally require fewer accounting costs than a BV.  Things to keep in mind when choosing a ZZP, especially as a freelancer/consultant:

** They are a "see-through entity" meaning the assets and liabilities of the ZZP are not separate from the owner
** They may not be suited for businesses with employees/personnel
** You should spend at least 1224 hours per year working for your company (a FT 40 hour a week is generally around 2000 hours per year)
** You should plan to have 3 or more clients
** No more than 70% of revenue should come from one single client
** If you work intensively for one client, you should ensure that you are using correct freelance agreements https://dutch-law.com/employment-law/freelancer-contract.html
** Your work should not resemble that of regular employees (management responsibilities, set hours, etc) https://penrose.law/en/employee-or-freelancer/
** You're actively promoting your business, (website, mailing list, social media, traditional advertising, etc

=== '''The besloten vennootschap (BV).''' ===
* A BV is a private limited company. These are legal entities composed of shares with assets and liabilities separate from the founder. In the case of a BV created for the purpose of the DAFT, your shares will generally represent your €4,500 investment and you will be the director of the company. Most sources online recommend that "if you plan on making at least €60,000 per year in profits with your business, you should set up a BV" although some sites recommend them for people making over €100,000 per year. BVs have benefits such as:
** Liability protection
** Access to the 30% ruling (only applicable if you have never lived or worked in the Netherlands before)
** The ability to expense things like relocation costs and your children's schooling costs
** Easier to get a Dutch drivers license

They are, however, more expensive to set up and run due to more complex bookkeeping/tax requirements. This site has a lot of info on tax burdens and benefits of a BV https://www.cardon.nl/blog/daft-and-taxes-the-dutch-american-friendship-treaty

If you have questions about whether a ZZP or BV is right for you, consult or a lawyer or tax professional.

== BVs and the 30% ruling ==
''"The 30% ruling is a scheme that offers employers the option to pay a tax-free allowance of no more than 30% of an employee's salary to employees recruited from abroad with specific expertise that is scarce in the Dutch labor market, and to do so for a maximum of five years."'' -- https://www.meijburg.com/news/changes-30-ruling

Contrary to popular belief, the 30% ruling CAN apply to people on the DAFT -- but only if your business is a BV and you take certain steps when setting up the company. For more info on getting the 30% ruling check out these resources:

* https://www.cardon.nl/blog/how-to-get-a-daft-visa-and-a-30-ruling-in-the-netherlands-a-guide-in-5-steps
* https://www.nordichq.com/guide-to-the-30-percent-ruling-in-the-netherlands/
* https://www.expatmanagementgroup.com/insights/here-s-what-you-need-to-know-about-the-30-ruling-in-2025

== Documents and paperwork you will need to bring ==
* Your passport
* An [[Apostille]]d copy of your birth certificate 
* It is a good idea to also bring apostilled copies of things like marriage and divorce certificates
* If you're bringing family members, remember to apostille and bring all their documents as well
*a registered place to live
*

== Do I need a lawyer to apply for the DAFT? ==
A lawyer is not specifically required. You may want or need a lawyer if you are bringing a spouse/family or setting up a (BV) as it is a more complex process than setting up a ZZP. If you think you might need a lawyer, it wouldn't hurt to talk to one! Many Americans hire lawyers simply for the peace of mind. There are A LOT of lawyers in the Netherlands who can help with a DAFT application, a simple internet search should help you to find one.  

== Do I need a notary to apply for the DAFT? ==
Yes/Maybe. Regardless of the business type you will need a notary or an accountant to certify that you have deposited the required money into your business account. Note that a notary may be required for additional tasks related to setting up a BV. This is fairly routine and most notaries should be able to help, regardless of their experience helping DAFT visa holders. A simple internet search should help you to find one.

== Do I need an accountant to apply for the DAFT? ==
Yes/Maybe. Regardless of the business type you will need a notary or an accountant to certify that you have deposited the required money into your business account. Additionally, BV holders will need one for handling their tax filings and compliance paperwork. PRO TIP -- Finding an accountant that specializes in working with DAFT holders may remove some of the headache from doing your taxes/accounting work, compiling your renewal visa paperwork, and communicating in English. A simple internet search should help you to find one.

== What is the general cost of setting up the DAFT? ==
According to this site - https://www.nordichq.com/guide-to-daft-treaty/ - the 2025 cost of applying for the DAFT includes:

* IND application fee: €380
* Legal & notary services: €1,500-€3,200 depending on complexity
* KVK registration: €75
* Bank account fees: Typically €100-150 euros per year.
* Accountant services: Around €350-€500 for the DAFT paperwork. Typically €1500-3000 per year for BV bookkeeping, tax returns and all compliance work.
* Initial investment: €4500
''APPROXIMATE MINIMUM COST - €6905-€8805''

Relocation fees, housing, office space, living expenses, and business expenses are of course additional. 

== Process/steps for setting up a ZZP (to be reviewed) ==

* Check that you meet the requirements and have the proper documents collected.
* Make sure you have a mailing address (this can be a correspondence address, an existing address of a person or institution) https://www.government.nl/topics/municipalities/question-and-answer/correspondence-address
* Make an appointment to register at the municipality of your choice to register in the Personal Records Database (https://www.government.nl/topics/personal-data/personal-records-database-brp)
* Fly to the Netherlands.
* Register at the municipality of your choice within 5 days of arrival (https://www.netherlandsworldwide.nl/personal-records-database-brp/when-register) After you register you will get a citizen service number (BSN) sent to you by mail. You will need this for a lot of things. When using a correspondence address you will need to register this first at the municipality of your choice
* Call IND (Immigratie en Naturalisatiedienst) to see if you need to make an appointment and request a permit for your stay until the paperwork is done https://ind.nl/en/service-contact/contact-with-ind/call-the-ind
* After receiving your BSN: apply for a DigiD -- the identity management platform used by the Dutch government: https://www.digid.nl/en/apply-and-activate/apply-digid/
* After receiving your DigiD: make an appointment with the Chamber of Commerce (KvK) to register your eenmanszaak (or B.V.) https://www.kvk.nl/en/registration/registering-a-dutch-eenmanszaak-and-making-an-appointment/ (you will need your DigiD for this) At the end of the appointment, request an official extract of your registration. Cost of registration: 65 euro
* Set up a bank account for your business. Popular banks for business accounts include Bunq, ABN AMRO, ING, and Rabobank (https://dutchreview.com/expat/how-to-set-up-a-dutch-bank-account/)
* Put the required amount in your business account (currently that is 4.500 euro).
* Get your opening balance sheet verified and signed off by an “External Expert”. This basically means that you must have someone who is a certified tax professional, accountant, or financial advisor verify that you have the required capital investment of €4500 in a business bank account.
* Fill in the DAFT form https://ind.nl/en/forms/7524.pdf and send it with all the required documents to the IND (cost of request: 405 euro).
* Wait and keep an eye on your snail mail because the IND does everything by post.

== Process/steps for setting up a BV (to be reviewed) ==

== How much income is my business expected to generate? ==

* There is a lot of conflicting information about how much money/profits your company must make in order for your renewal to be accepted. Talk to an immigration lawyer if you have questions or concerns about your specific case but we have seen multiple cases where people struggling to establish a profitable business were still approved for renewal.

== DAFT and housing ==
Getting housing on the DAFT can feel like a Catch 22 -- you need a registered address to apply for your DAFT but landlords want to see employment contracts and proven income before they'll rent to you. '''''Securing housing is probably the hardest part of the DAFT process.''''' There is no one set of advice on how to get housing on the DAFT but here is a collection of wisdom you'll see on the internet. 

==== General Housing Advice ====

** A lot of people stay in short term rentals while looking for more permanent housing. These are generally furnished, have variable stay periods, may or may not allow for registration, and may or may not take pets. If you require registration, ALWAYS triple check before signing any contracts or handing over money. Short term rentals can include:
*** AirBnBs
*** housesits
*** corporate housing
*** short stay apartments and hotels
* A lot of people use makelaars to help secure more permanent housing, especially in competitive cities. [https://expatestates.nl/makelaar-what-are-their-roles Makelaar: What Are Their Roles] There is a whole industry of makelaars that specialize in helping Americans find housing. This list of popular expat makelaars was culled from Facebook and is by no means complete, nor has it been sorted by service location. Many DAFT holders prefer working with makelaars off this list due to their familiarity with the visa and the challenges it causes in the house hunt. 
*** Xpatations –  <nowiki>https://xpatations.com/</nowiki>
*** My Home Relocator – <nowiki>https://myhomerelocator.com/</nowiki>
*** The Dutch Life – <nowiki>https://thedutch-life.nl/</nowiki>
*** Expats On The Move – <nowiki>https://expatsonthemove.nl/</nowiki>
*** ComfyCorner – <nowiki>https://www.comfy-corner.nl/</nowiki>
*** Expat Things – <nowiki>https://expatthings.nl/</nowiki>
*** Homes For Expats – <nowiki>https://homesforexpats.nl/</nowiki>
*** Orange Homes – <nowiki>https://orange-homes.com/</nowiki>
*** Expat Housing Network – <nowiki>https://www.expathousingnetwork.nl/</nowiki>
*** Dutch Home Hunters – <nowiki>https://www.dutchhomehunters.nl/</nowiki>
* Relocation companies are a thing and exist. [https://www.iamexpat.nl/expat-info/relocation-services-companies-netherlands Relocation services & companies in the Netherlands]

==== Rental Advice ====

* Perhaps a little obvious, but the lower your budget the more competitive finding housing will be. Expect things to take longer if you're looking at lower priced apartments.
* Finding housing with pets will be more difficult.
* Most landlords want to see proof of income in excess of 3x the rent. They will require bank statements, pay stubs, or employment contracts (which you will not have) to prove this.

* If you're relocating a business from the US to the NL you may be able to use previous invoices to prove your income. 
* You may be able to use bank statements to show that you can afford the rent for the length of the rental contract.
* You may be able to offer to pay in advance to help secure housing.
* You might have better luck renting from a fellow American. Follow the expat/immigrant groups -- you might see people who are moving and renting out their house or looking for housemates or whatnot. 

==== Buying Advice ====

== DAFT and spouses/families ==
The DAFT does allow applicants to bring a spouse, registered partner, and minor children. Adult children, parents, and other family members will need to secure their own visa however. Family members are eligible for their own work visas and can work for Dutch companies (unlike the DAFT holder who can only work for themselves). For more information on bringing your family see the [https://ind.nl/en/forms/3085.pdf IND site on enabling a family member or relative to come to the Netherlands]. 

== DAFT and taxes ==

== Requirements for maintaining the DAFT ==

* You cannot be employed by a Dutch company. This means no taking a part time job to cover expenses while your business ramps up. 
* You have maintained the initial €4500 investment in your business bank account

== Renewing your DAFT ==
Your first DAFT visa is good for two years, after which you will need to renew it every five years.

* 90 days before it expires the IND will send you a letter about your renewal. You will need to assemble a report about the financial status of your business as part of the renewal. You and/or your accountant will need some time to prepare for this so do not procrastinate. 
* It can take up to 3 months for the IND to process and either accept/reject your renewal request. If your residency permit expires during this time you CAN stay in the Netherlands, just like you could stay in the Netherlands while your initial DAFT application was being processed.
* DO NOTE -- Obtaining permanent residency in the Netherlands requires you to live in the country continuously for five years. If your residency permit expires while you're awaiting a verdict on your DAFT renewal it may reset the clock and set your timeline back by two years. 
* There is a lot of conflicting information about how much money/profits your company must make in order for your renewal to be accepted. Talk to an immigration lawyer if you have questions or concerns about your specific case but we have seen multiple cases where people struggling to establish a profitable business were still approved for renewal.

== Once you Obtain the Netherlands Visa (USA citizens) ==
CONGRATULATIONS! You are now allowed to stay in the Netherlands for two years, run your own business and perform work as a freelancer. You must maintain the €4,500 balance in your bank business account. Do not go below this required investment amount, otherwise, the IND may revoke your Netherlands Visa. USA citizens may apply for an extension after the two years are up. If you receive the extension your permit is valid for another 5 years.

After having your Dutch-American Friendship Treaty Visa for 5 years, you may apply for a permanent residence permit or you may apply for Dutch citizenship!