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For many American entrepreneurs and freelancers, getting the approval letter from the Dutch Immigration and Naturalisation Service (IND) feels like the finish line. In reality, this marks the start of the most important part of the process: setting yourself up correctly in the Netherlands and running an active business from the first year. Doing so ensures you are in a strong position when it is time to extend your permit.
The Dutch-American Friendship Treaty (DAFT) residence permit is granted on the basis of entrepreneurship. This means that what you do after approval matters just as much as the application itself. Your first year forms the foundation for your future residence, business credibility, and legal continuity in the Netherlands.
Here’s how the next 12 months should go.
After approval, the IND will instruct you on the next steps. In most cases, this includes providing biometrics (photo, fingerprints and signature) and then collecting your residence permit card from the IND by appointment.
You should carefully follow the IND instructions and ensure that all requested documents are prepared in advance. These may include your IND confirmation letter, passport, apostilled birth certificates, marriage certificates, or other civil status documents, depending on your personal situation.
The residence permit card is your official proof of lawful residence and working rights in the Netherlands. You will need it for almost every essential administrative step, including municipal registration, opening bank accounts, arranging insurance, and confirming your legal status with institutions. Without this card, many practical arrangements cannot proceed.
It is important to remember that during your first five years under the DAFT residence permit, you are not permitted to work for other companies, as this would require a separate work authorisation. Your family members, however, are free to work without restriction.
At the same time, once you are living in the Netherlands, you fall fully under Dutch tax law, which means it is essential to properly understand your tax obligations.
If you plan to live in the Netherlands for more than four months, you must register in person with your local municipality. In general, registration is required within five days of arrival and is completed by appointment.
During your registration, you will need to bring the original birth and marriage certificates, with apostilles, for yourself and your family members.
Subsequently, your address, identity, and civil status will be recorded in the Dutch Personal Records Database (BRP). After registration, you will receive your BSN (Citizen Service Number).
The BSN is the main identifier in Dutch bureaucracy. You will need it for employment, taxation, healthcare access, housing contracts, banking, and communication with Dutch authorities. Without a BSN, it is practically impossible to function within the Dutch administrative system.
If you live or work in the Netherlands, you are generally required to take out Dutch basic health insurance. Government guidance indicates that this must be arranged as soon as possible but no later than four months after your arrival.
This means that insurance coverage may be applied retroactively from the start of your residence period. For this reason, it is important not to delay arranging insurance, even if you are still settling in or finalising other administrative matters.
Dutch basic health insurance is standardised, but providers, supplementary packages, and premiums vary. Choosing a suitable insurer early helps ensure continuity of coverage and avoids administrative complications later in the year.
One of the core DAFT extension criteria is whether your business is genuinely active. This means you are conducting real commercial activity. In practical terms, this includes:
Issuing invoices
Receiving payments
Recording business expenses
Maintaining a business bank account
Providing services or selling products
Demonstrating ongoing transactions
The IND assesses business activity through financial records. The main thing here is to demonstrate active business operations and the financial viability of the company.
For this reason, maintaining proper bookkeeping is crucial, as it ensures a clear tax record and supports the continuation of your residence. Clear records, consistent income streams, and transparent business activity make it significantly easier to demonstrate compliance at the extension stage.
In addition to business performance, DAFT entrepreneurs must also show that they can financially sustain themselves in the Netherlands.
From approximately month seven onward, you must be able to show a minimum personal income level of around €1.735 per month (2026). This income must be traceable and supported by documentation, such as salary payments, dividends, or business withdrawals.
This requirement links your business activity directly to your residence status. For many entrepreneurs, this means planning early how personal income will be structured, reported, and documented.
Failing to plan for this requirement often creates difficulties at the extension stage, even when a business is otherwise operational.
Ultimately, your first year in the Netherlands under the DAFT visa is not only about settling in. It is about building a strong legal and financial track record.
It is important to remember that the IND does not just assess future intentions, but they also closely consider past and current performance. To this end, strong documentation, consistent business activity, and realistic income planning make the extension process smoother, more predictable, and far less stressful.
Looking for help with your DAFT Visa application process? Our team of experienced lawyers are here to guide you through the steps and offer professional legal support! Don't hesitate to reach out to us with any questions you have.
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