Can I Work Remotely Under DAFT?

Many U.S. entrepreneurs who are planning to move to the Netherlands under the Dutch-American Friendship Treaty (DAFT) ask whether they can continue working remotely for clients outside the country. In most cases, the answer is yes. However, the legality of remote work under DAFT depends not on where your clients are located, but on the legal structure of your business.

Under Dutch immigration law, the key question is whether you are carrying on business as an independent entrepreneur or working as an employee. A residence permit issued under DAFT is intended for self-employed business owners and does not authorize regular salaried employment.

Working Remotely for U.S. Clients

One of the major advantages of DAFT is that your customers do not have to be based in the Netherlands.

Many American entrepreneurs continue working with:

• U.S. companies;

• American startups;

• international businesses;

• online customers around the world.

Dutch immigration rules generally do not require DAFT entrepreneurs to build a Dutch client base. As long as your business is genuinely operated from the Netherlands, you are free to provide services to clients anywhere in the world.

This flexibility makes DAFT particularly attractive for entrepreneurs whose businesses already operate internationally. Relocating to the Netherlands does not necessarily mean changing your existing business model or giving up long-term clients in the United States or elsewhere.

Examples of businesses that commonly operate under DAFT include:

• software development;

• IT consulting;

• legal consulting (where permitted under applicable professional rules);

• marketing agencies;

• graphic design;

• business consulting;

• online education;

• SaaS companies;

• e-commerce;

• coaching;

• digital content creation.

Regardless of the industry, the essential requirement is that you are genuinely running your own business.

DAFT Is Not a Digital Nomad Visa

This is probably the most common misunderstanding about DAFT.

Many people assume that because they work online, they automatically qualify for a DAFT residence permit. That is not how the program works.

DAFT is a residence permit for entrepreneurs, not for digital nomads.

For that reason, the IND looks at the substance of your business rather than the fact that you work remotely. The location of your laptop is not what matters. What matters is whether you are actually operating an independent business.

In practice, this means that you should:

• own or actively manage your company;

• make your own business decisions;

• bear the financial risks of the business;

• invoice clients directly;

• maintain proper business records;

• comply with Dutch accounting and tax requirements.

Simply living in Amsterdam while working online does not, by itself, qualify someone for DAFT. The legal basis for the residence permit is entrepreneurship.

Can I Continue Working for My Current U.S. Employer?

The answer depends on your legal relationship with that company.

Scenario 1: You Become an Independent Contractor

This arrangement is often compatible with DAFT.

For example, you may:

• register your own Dutch business;

• invoice your U.S. client directly;

• determine how and when you perform your work;

• provide services as an independent business owner.

  
  

In this situation, your former employer essentially becomes your client.

Since many American companies already engage independent contractors, this type of arrangement is often relatively easy to implement.

However, entrepreneurs should be aware of an important Dutch legal concept known as schijnzelfstandigheid (false self-employment).

Merely changing your employment agreement into a service contract does not automatically make you an independent entrepreneur under Dutch law. If, in practice, you continue working almost exactly as before—for example, you have only one client, work fixed hours determined by that client, use company equipment, and remain subject to the client's management and supervision—the Dutch Tax Administration (Belastingdienst) may conclude that the relationship is, in substance, one of employment rather than self-employment.

Although the IND makes its own assessment when considering a DAFT residence permit, the practical reality of your business relationship is highly relevant. If the available evidence indicates that you are effectively working as an employee rather than operating an independent business, this may affect your ability to satisfy the conditions of your residence permit.

For this reason, many immigration and tax professionals recommend that DAFT entrepreneurs:

• enter into a genuine business-to-business (B2B) service agreement with their clients;

• maintain control over how their services are performed;

• bear normal entrepreneurial risks;

• whenever possible, develop a broader client base instead of relying exclusively on a single customer.

Demonstrating genuine entrepreneurial independence is one of the strongest ways to reduce both immigration and tax risks.

Scenario 2: You Remain a Salaried Employee

This is generally not compatible with DAFT.

If you continue working as an employee and receive a salary while relying on a DAFT residence permit, you may no longer satisfy the conditions under which the permit was granted.

DAFT is designed for self-employed entrepreneurs. Individuals who wish to work as employees normally require a different type of Dutch residence permit sponsored by their employer.

What About Freelancing?

Freelancing is one of the most common ways entrepreneurs use DAFT.

Many modern professions can be performed entirely online while serving clients across multiple countries.

Examples include:

• software engineer;

• web developer;

• cybersecurity consultant;

• architect;

• accountant;

• financial consultant;

• photographer;

• copywriter;

• translator;

• AI consultant;

• UX designer.

As long as you operate independently and comply with Dutch business and tax regulations, freelancing generally fits well within the purpose of DAFT.

Can I Have Only American Clients?

Yes.

Neither DAFT nor the IND requires entrepreneurs to earn income from Dutch customers.

Your entire client base may consist of:

• U.S. businesses;

• Canadian companies;

• UK companies;

• Australian clients;

• customers located anywhere else in the world.

The important point is not where your clients are located, but whether your business is genuine, active, and managed from the Netherlands.

Will I Pay Dutch Taxes?

In many cases, yes.

Once you become a tax resident of the Netherlands, Dutch tax rules generally apply to your worldwide income. At the same time, U.S. citizens often remain subject to certain U.S. tax filing obligations. Although the tax treaty between the two countries helps reduce the risk of double taxation, cross-border taxation can be complicated, and professional advice is often advisable.

Does Remote Work Affect DAFT Renewal?

Working remotely does not, by itself, create problems when renewing a DAFT residence permit.

However, the IND will normally want to see that your business has remained active. Depending on your circumstances, you may be asked to provide documents such as:

• invoices;

• client contracts;

• bookkeeping records;

• annual financial statements;

• business bank statements;

• VAT returns, where applicable.

The focus is not on where your customers are located. Instead, the IND looks at whether your business has genuinely continued operating and whether you have maintained the investment required under DAFT.

Maintaining the Required Investment

One of the conditions for obtaining and renewing a DAFT residence permit is maintaining the required minimum investment in the Dutch business.

Many applicants mistakenly believe that they simply need to keep €4,500 in their business bank account. In reality, the requirement is more nuanced.

The IND evaluates whether the company maintains the required level of equity (shareholders' equity or net assets) rather than merely reviewing the cash balance in the bank account.

For example, if your business account contains €4,500 but the company has outstanding liabilities or unpaid taxes of €1,000, the company's equity may be only €3,500. In such circumstances, the business may no longer satisfy the financial requirement under DAFT.

For this reason, many accountants recommend maintaining a financial buffer above the minimum investment amount to help ensure that ordinary business expenses, taxes, or temporary liabilities do not reduce the company's equity below the required threshold.