Netherlands-DAFT

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 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 or service, an online business selling a product or a service, or you can work in the Netherlands 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.

Useful resources for learning about the DAFT

• Dutch American Friendship
• My experience with the Dutch American Friendship Treaty (reddit)
• Guide to getting Dutch American Friendship Treaty (reddit)
• Update on DAFT visa process (reddit)/
• DAFThub (Facebook)

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) -- sole proprietorships
• The besloten vennootschap (BV) --limited liability corporation

Do I need a lawyer to apply for the DAFT?

Not for setting up an eenmanszaak (ZZP). You may need a lawyer if you are bringing a spouse/family or setting up a besloten vennootschap (BV). 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.

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.

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

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!