Frequent Asked Questions

Not necessarily. A lack of previous business experience does not automatically prevent you from qualifying for a residence permit under the Dutch-American Friendship Treaty (DAFT). What is more important is your ability to operate a genuine business and attract paying clients. Those clients do not have to be located exclusively in the Netherlands and may be based in other countries, including the United States. However, becoming self-employed in the Netherlands also means taking responsibility for proper business administration. You should maintain accurate financial records, keep all invoices and receipts, and carefully document your business expenses. Because electronic bank transfers are the standard method of payment in the Netherlands, conducting business on a cash-free basis is generally recommended. If cash payments are accepted, every transaction should be accurately recorded in your accounting records. As a business owner, you will also have ongoing tax obligations. For example, many entrepreneurs are required to submit Value Added Tax (VAT) returns to the Dutch Tax Administration on a quarterly basis. Failure to comply with these reporting requirements may result in financial penalties. If you are unfamiliar with the Dutch tax system or do not speak Dutch, hiring a qualified Dutch accountant or bookkeeper is often a worthwhile investment. Professional assistance can help ensure that your bookkeeping, tax filings, and financial records remain compliant with Dutch legal and tax requirements.

The DAFT (Dutch-American Friendship Treaty) residence permit allows U.S. citizens to live and operate a business in the Netherlands under a simplified immigration procedure established by the Dutch-American Friendship Treaty.

Only U.S. citizens who establish or operate a business in the Netherlands may qualify. Applicants must meet the requirements established by the Dutch Immigration and Naturalisation Service (IND).

Under the Dutch-American Friendship Treaty (DAFT), U.S. citizens may establish or operate almost any type of legitimate business in the Netherlands, provided they are engaged in genuine self-employed or entrepreneurial activities. One of the principal advantages of DAFT is that applicants are not required to satisfy the standard Dutch points-based assessment that normally applies to self-employed entrepreneurs. In most cases, they do not need to demonstrate that their business is innovative or of particular economic importance to the Netherlands. What Types of Business Activities Are Permitted? DAFT may be used for a wide range of business activities, including, for example: business consulting; IT services and software development; artificial intelligence and technology services; marketing and digital marketing; graphic and web design; architecture and engineering services; photography and creative services; coaching, education, and professional training; e-commerce businesses; import and export activities; online businesses; freelance professional services; and many other legitimate commercial activities. The treaty does not limit applicants to specific industries. The key requirement is that the applicant actively operates a genuine business rather than merely holding passive investments. What Business Structure Can Be Used? The business may generally be established under any legal structure permitted by Dutch law. The most common options are: a sole proprietorship (eenmanszaak); or a Dutch private limited liability company (Besloten Vennootschap or BV). The choice of legal structure does not determine eligibility under DAFT. Instead, it should be based on business, legal, accounting, and tax considerations. Are There Any Restrictions? Yes. Although DAFT offers significant immigration advantages, it does not exempt applicants from complying with Dutch laws governing regulated professions and business activities. Certain industries require additional licences, permits, registrations, or professional qualifications. These may include healthcare, legal services, financial services, childcare, transportation, food services, and other regulated sectors. In addition, purely passive investments—such as holding investment property for rental income, maintaining a dormant company, or establishing a business solely on paper without genuine commercial operations—generally do not satisfy the requirements of the DAFT residence permit. Applicants should therefore be prepared to demonstrate that they are actively operating a legitimate business in the Netherlands in accordance with applicable Dutch laws and regulations.

Yes. Artists, designers, photographers, illustrators, architects, musicians, filmmakers, writers, creative consultants, and other creative professionals may qualify for a residence permit under the Dutch-American Friendship Treaty (DAFT), provided they are U.S. citizens and operate a genuine self-employed business in the Netherlands. Unlike many other Dutch residence permits for self-employed persons, DAFT applicants are not required to satisfy the standard Dutch points-based assessment or demonstrate that their artistic or creative work serves a specific economic interest of the Netherlands. Creative professionals commonly use DAFT for activities such as: graphic and web design; UX/UI design; industrial and product design; interior design; fashion design; illustration; photography; filmmaking and video production; music production and performance; fine arts; creative consulting; animation and digital media; and other independent creative services. Applicants may conduct business as freelancers, consultants, or owners of a Dutch business, provided they are actively engaged in their professional activities.

You will need to invest €4500 and maintain this amount in a business bank account. In addition to this initial investment, you must pay the DAFT visa application.

Once the DAFT application has been submitted, the approval takes about 6-8 weeks.

No, since the business does not necessarily need to be profitable there are no minimum income or profit requirements. However, there does need to be revenue and incurred expenses, i.e. you must be conducting some amount of business. As a general rule of thumb, yearly revenues of about €5,000 is a safe minimum amount in order to maintain your DAFT residence permit.

Yes, with an important caveat: you do not have to maintain a balance of €4,500 at all times, however equity in your business must not drop below €4,500 on January 1 and December 31 of each financial year.

No, under the DAFT program it is assumed that the primary applicant is operating a business. However, your spouse can work in salaried employment. If, while living in the Netherlands, you find a Dutch company that would like to hire you as a ‘Highly Skilled Migrant Worker’ you can switch your DAFT residence permit to a permit for the purpose of employment. Even in this case, you are still permitted to work in self employment on the side.

Yes, you can continue serving your U.S. client while living and working in The Netherlands. There are no restrictions on where your clients originate. Simply invoice them from your new Dutch business and receive payments through your Dutch business’s bank account.

Applying for the DAFT residence permit assumes that the center of your life will be in The Netherlands. You may spend up to 6 months each year abroad, as long as you keep a registered address in The Netherlands. In The Netherlands, the address you register with is considered your primary residence, and therefore should not be the address of a friend or acquaintance.

After getting your DAFT visa application accepted, your first residence permit will be valid for 2 years. Once these two years are almost up, you have to file a renewal that shows you have maintained your investment of 4500 euros and that your Dutch business is active. After this, you will be able to renew your DAFT visa every 5 years under these same conditions.

Yes. The Dutch-American Friendship Treaty (DAFT) does not require applicants to establish a new business. A U.S. citizen may instead purchase an existing Dutch business, provided the applicant will actively own and operate the business as a self-employed entrepreneur. Purchasing an established business is often an attractive option because the company may already have existing clients, contracts, suppliers, employees, and an operational history. However, simply purchasing a business does not automatically qualify an applicant for a DAFT residence permit. The applicant must demonstrate that he or she will actively manage and operate the business in the Netherlands. Passive ownership alone is generally insufficient. The purchased business must also comply with Dutch laws and remain a genuine, operating commercial enterprise. Before purchasing an existing business, applicants are strongly advised to conduct appropriate legal, financial, and tax due diligence to identify any outstanding liabilities, contractual obligations, tax issues, or regulatory compliance concerns.