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The Netherlands offers a wealth of opportunities for American entrepreneurs who are seeking to start their own businesses and begin a new chapter of their lives. The Netherlands Friendship, Commerce, and Navigation Treaty, which is also referred to as the Dutch American Friendship Treaty (DAFT), signed between the United States and the Netherlands on March 27th, 1956, gives this chance to American citizens. Due to this unique arrangement between the two countries, American citizens can obtain a Dutch residence permit if they intend to start their own business in the Netherlands and make a substantial capital (investment) in their enterprise, regardless of the type of business, the type of customers, or their origin.
The DAFT visa functions as a combined residence and work permit for American entrepreneurs who want to operate their own business in the Netherlands. Unlike the standard Dutch self-employment visa, the DAFT visa does not require applicants to pass a points-based assessment evaluating the economic value of their business to the Dutch economy. Because of this simplified requirement, the DAFT visa has become one of the most accessible pathways for American entrepreneurs wishing to relocate to the Netherlands.
For a residence permit under the Dutch American Friendship Treaty, entrepreneurs must invest €4.500 in their new Dutch business. This capital must be deposited into the business bank account of the registered Dutch company.
Previously, applicants typically needed to provide proof of the deposit through a bank statement or a statement prepared by a registered accountant confirming the opening balance. However, a newly installed pilot program also allows applicants to provide the €4.500 proof of deposit after the permit is issued, thus making the application process smoother.
The €4.500 does not need to remain untouched in the bank; once the business is established, it can be used for legitimate business expenses. When the permit is extended, the Immigration and Naturalisation Service verifies that the business is still active and that the initial capital remained within the business, as reflected in the company’s financial records.
The DAFT visa is available only to U.S. citizens who intend to operate a business in the Netherlands. The permit is specifically designed for entrepreneurs and freelancers who want to work independently.
To qualify, applicants must generally meet the following criteria:
The DAFT visa cannot be combined with regular employment. This means the applicant must work primarily within their own business rather than for another employer.
Certain individuals typically do not qualify, including people relying solely on passive income, retirees who are not operating a business, or applicants attempting to use inactive or shell companies without real economic activity.
Additionally, it is important to know that learning Dutch is NOT required to obtain the DAFT visa.
Two common structures are commonly used to register a business in the Netherlands.
A sole proprietorship is the most common option for freelancers, consultants, and independent professionals. It is relatively simple to establish and involve fewer administrative requirements. Many self-employed professionals choose this structure when working independently in fields such as consulting, design, or IT services.
It is very important to keep the accounts and financial records in order for extension. Working with one firm for immigration and accounting may guarantee the extension.
Another option is establishing a BV (Besloten Vennootschap), which is similar to a limited liability company. This structure may be preferable for entrepreneurs expecting higher revenues or those planning to grow their business.
In certain cases, entrepreneurs operating through a BV may qualify for the 30% ruling, a tax benefit available to some expatriates that allows a portion of income to be exempt from taxation for a limited period. Choosing the appropriate business structure depends on expected income levels, tax considerations, and long-term business plans.
Applicants must prepare several documents for the visa process and subsequent municipal registration.
These documents typically include:
Documents issued outside the Netherlands often require an apostille certification, which verifies that the documents are legally valid for use in another country.
American citizens may travel to the Netherlands visa-free for up to 90 days. During this period they can schedule an appointment with the Dutch Immigration and Naturalization Service (IND) to begin the DAFT visa application process.
After arrival, applicants generally receive a temporary residence endorsement sticker in their passport while their application is being processed. This sticker allows them to remain in the Netherlands legally and continue the application process.
It is also necessary to register with the local municipality (Gemeente) soon after arrival. Following registration, the municipality will issue a BSN (Citizen Service Number), which is required for administrative matters such as banking, taxation, and business registration.
Applicants must pay government application fees when submitting the DAFT visa request. The 2026 fees are as follows:
These costs are separate from the €4.500 capital investment required for the business.
One notable advantage of the DAFT visa is the possibility of bringing close family members to the Netherlands.
DAFT visa holders can bring their spouse or registered partner and minor children with them. Family members can apply for a residence permit through the Dutch Immigration and Naturalization Service (IND). If the partner is not legally married to the applicant, evidence of a durable relationship must be provided.
Family members enjoy a broader work authorization than the DAFT holder. They are generally free to work in any capacity within the Netherlands, including regular employment or starting their own business. In contrast, the DAFT visa holder must remain self-employed in the business for which the permit was granted.
The Dutch Immigration and Naturalization Service (IND) usually finalize their decision on DAFT visa applications within 8 to 12 weeks, although the official legal decision period can extend up to 90 days.
In some situations, the decision period may be extended if the application is incomplete or if the IND requires additional information.
Once the IND has made a decision on the DAFT visa application, the applicant will receive an official letter with the outcome.
If the application is approved, the applicant will be instructed to schedule an appointment with the IND to give their biometrics first. When the physical residence permit is ready, they will receive another letter. Then, they need to make an appointment to collect their residence permit. If the application is rejected, the applicant has the right to submit an objection and request a review of the decision.
The DAFT visa is initially granted for two years. If the business remains active and the investment requirement continues to be met, the permit can be renewed.
In most cases, after five years of legal residence in the Netherlands, DAFT visa holders become eligible to apply for permanent residency. During the validity of the permit, the entrepreneur must remain self-employed in the business for which the visa was granted.
When renewing the visa after the first two years, the Dutch Immigration and Naturalization Service (IND) may review the financial performance of the business to ensure it is operating and generating income.
The Dutch American Friendship Treaty visa provides American entrepreneurs with one of the most straightforward pathways to live and work in the Netherlands. With a relatively low investment requirement and simplified approval process compared to other self-employment visas, the DAFT visa continues to attract freelancers, consultants, and business owners who want to establish themselves in the Dutch market while enjoying the benefits of living in Europe.
For legal support regarding your DAFT visa journey, contact us! For other DAFT related articles, check out our DAFT blog page.
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