Thinking of moving to the Netherlands as an American? The Dutch-American Friendship Treaty (DAFT) offers U.S. citizens a fast-track residence permit to live and work as entrepreneurs. Here’s what you need to know — from requirements to the step-by-step process.
What is the Dutch-American Friendship Treaty (DAFT)?
The Dutch-American Friendship Treaty (DAFT), signed in 1956, allows U.S. citizens to start a business and obtain a residence permit in the Netherlands with minimal investment. Unlike other non-EU nationals, Americans don’t have to pass a points-based system or submit a detailed business plan.
This treaty is designed to foster economic cooperation and offers one of the easiest immigration pathways for Americans in Europe.
Key Benefits of the DAFT Visa
✅ Low capital requirement: Only €4,500 investment needed
✅ Simple application process: No complex points or business plan
✅ Includes family: Spouse and minor children can join
✅ Renewable: Initial permit is valid for 2 years and renewable for 5
✅ No Dutch language test required
✅ Work flexibility: Run your own business or work as a freelancer
Who is Eligible?
To qualify for a DAFT residence permit, you must:
- Be a U.S. citizen
- Start or own a business in the Netherlands
- Register your company with the Dutch Chamber of Commerce (KvK)
- Deposit at least €4,500 in a Dutch bank account under your name
- Hold valid Dutch health insurance
- Have no serious criminal record
Step-by-Step: How to Apply for a DAFT Visa
- Register your business
You must register with the KvK (Kamer van Koophandel) as a sole proprietor (eenmanszaak) or other eligible entity. Note: this may also be done within 6 months after the permit has been approved.
- Open a Dutch bank account
You’ll need this to deposit the €4,500 capital, a key condition for the DAFT visa.
- Apply through IND
Submit your application to the Immigration and Naturalisation Service (IND) either from within the Netherlands or your home country.
- Receive your residence permit
After IND approval (officially 90 days but usually 4–8 weeks), you’ll be issued a residence permit valid for 2 years.
Common Mistakes to Avoid
- Not depositing the capital in one’s own name of that of the company
- Submitting incomplete or outdated documentation
- Operating a business that doesn’t meet legal requirements
- Not maintaining your KvK registration
- Not having valid Dutch health insurance
Taxes and Legal Responsibilities
Once you’re approved under DAFT:
- You must register with the Dutch Tax Office (Belastingdienst)
- You may be required to charge and pay VAT (BTW) depending on your business
- It’s recommended to hire a local accountant or tax advisor
- You must file yearly tax returns in the Netherlands (and possibly in the U.S.)
Ready to Relocate to the Netherlands?
At Eres Relocation, we specialize in helping international professionals and entrepreneurs settle in the Netherlands smoothly and successfully. From setting up your business to guiding you through the DAFT process, we’re with you every step of the way.
