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

• 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). 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

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.

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!