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If you are not from Europe and want to live in the Netherlands, you usually need a residence permit: an official card that says you may live here. Most people get one through a Dutch employer who hires them. Americans have a special shortcut. It comes from an old agreement between the Netherlands and the United States, the Dutch-American Friendship Treaty, or DAFT for short. With DAFT, a US citizen can get a Dutch residence permit by starting their own small business here and putting just €4,500 into it. This guide explains, from the start, who DAFT is for, how to apply step by step in 2026, what it costs, and the Dutch and US tax rules you need to know.
The idea in simple words
A long time ago, in 1956, the Netherlands and the US signed a friendship agreement. One part of it says that Americans may start a business in the Netherlands almost like Dutch people can.
So if you are American, you can move here by becoming your own boss: you register a small business, put €4,500 in its bank account, and ask the Dutch immigration office for a permit. Other non-Europeans have to pass a hard test to do this. Americans don't.
The one big rule: you must really work for yourself. You can't use DAFT to take a normal job at a Dutch company.
The most important facts
- Who: US citizens who want to work for themselves in the Netherlands. Japanese citizens have the same route through a Dutch-Japanese trade agreement.
- Money: at least €4,500 in a Dutch business of your own (€11,250 for a large company type called an NV). It stays your money, but it must stay in the business.
- Fee to the Immigratie- en Naturalisatiedienst: the Dutch immigration office. It decides on residence permits. in 2026: €423 for the first application, and again for each extension.
- Permit: usually for 2 years at first, then extensions of up to 5 years.
- Family: your partner and children can come with you, and your partner can work for any employer.
- The catch: you must really be Working for yourself: you find your own clients and send them bills, instead of getting a salary from an employer.. DAFT doesn't let you take a salaried job with a Dutch employer.
What DAFT is
The official name is the Treaty of Friendship, Commerce and Navigation between the Netherlands and the United States. It was signed in 1956. Among other things, it gives American citizens the right to start and run a business in the Netherlands on almost the same terms as Dutch people. The IND, the Dutch immigration office, turns that right into a residence permit for "self-employed persons based on the Dutch-American Friendship Treaty".
This is very different from the normal permit for people who work for themselves. Other people from outside the EU must show that their business is important for the Netherlands. They are scored with a A test where you get points for your experience, your business plan and what your business adds to the Dutch economy. If you don't get enough points, you don't get the permit., and many of them fail. With DAFT, the IND mostly checks that you have a real, registered business with enough money in it.
Who DAFT is for, and who it isn't for
DAFT works well for:
- Freelancers and consultants: designers, developers, writers, coaches, marketers, translators.
- People who already have clients, including clients in the US, who can send them bills through a Dutch business.
- Small business owners who want to open a shop, studio, practice or agency.
It is not the right route if you:
- Want a salaried job with a Dutch company. For that you need a permit through your employer, such as the A residence permit for skilled workers hired by a Dutch employer that is approved by the IND. In Dutch: kennismigrant..
- Want to keep working as an employee for your US employer while you live here. Working from home for an employer is not the same as working for yourself, and it brings its own tax and salary questions.
- Also have a passport from an EU country. As an EU citizen, you can live and work here without any permit.
The DAFT requirements
- US citizenship and a valid passport.
- A business registered with the Netherlands Chamber of Commerce (Kamer van Koophandel: the Dutch office where every business must be registered. You get a KvK number.), where you are the owner or own a big part of it.
- At least €4,500 put into the business. Usually you show this with a deposit into a Dutch business bank account. For an NV (a large company type), the minimum is €11,250.
- Money papers checked by an independent accountant. The IND's form asks for an independent expert to check the money. In practice, this is usually an opening A list of what a business owns and owes on a certain day. The opening balance sheet shows this on the first day. signed by a Dutch accountant, plus a bank statement with the business name and the €4,500.
- Real business work. The IND asks you to describe what you will do. Many people add a short business plan.
- A Dutch address where you are allowed to register with the The local government of your town or city. In Dutch: gemeente. Everyone who lives in the Netherlands must register their address there..
Americans don't need a special entry visa (Machtiging tot Voorlopig Verblijf: an entry visa that many non-EU citizens need before they travel to the Netherlands for a long stay.) and don't need a A test for tuberculosis, a lung disease. Some nationalities must take it when they move to the Netherlands.. You can fly in without a visa, arrange everything here, and apply within the 90 days you may stay without a visa.
Sole proprietorship or BV?
You can set up your business in two main ways. A sole proprietorship (eenmanszaak) means the business is simply you. A BV is a separate company that you own.
| Sole proprietorship (eenmanszaak) | Private limited company (BV) | |
|---|---|---|
| Setting up | You register at the KvK yourself, in one appointment | You need a A notaris: a lawyer appointed by the government who makes official documents, such as the papers that create a company., usually several hundred euros or more |
| DAFT money | €4,500 in the business account | €4,500 paid into the BV |
| If the business has debts | You must pay them from your own money | In most cases only the company must pay them |
| Taxes | The profit is taxed as your income, with special tax discounts for business owners | The company pays Tax a company pays on its profit. In Dutch: vennootschapsbelasting., and you pay tax on the salary and A share of a company's profit paid to its owners. you take out |
| Bookkeeping | Simple | Yearly accounts and more paperwork |
Most DAFT applicants start with an eenmanszaak. It is cheaper, faster and simpler. You can change to a BV later, when your profits grow.
Step by step
- Find a home and register with the municipality. This gives you a Burgerservicenummer: your personal Dutch ID number. You need it for almost everything: work, tax, banks and healthcare., which you need for almost everything else. Read our moving to the Netherlands checklist to see how registering works.
- Register your business with the KvK. You get a KvK number, and the tax office sends you a Value added tax, in Dutch btw. A tax added to the price of most goods and services. As a business, you add it to your bills and pay it to the tax office. number. Registering at the KvK costs about €85.
- Open a Dutch business bank account and put at least €4,500 in it. Keep the bank statement that shows the deposit.
- Ask an accountant to check the money and make an opening balance sheet.
- Apply to the IND. Send your KvK record, the bank statement, the accountant's papers, a description or plan of your business, a copy of your passport, and the €423 fee.
- Wait for the answer. The IND has 90 days to decide. You may stay in the Netherlands while you wait.
- Pick up your residence card at an IND office, and start working.
The address and bank account puzzle
Here is a tricky circle. Landlords want proof that you earn money. Banks want a BSN. And to get a BSN, the municipality wants an address where you are allowed to register. Plan for this before you fly. Have money ready for a furnished home or a sublet where the contract clearly allows you to register. Look for banks that open accounts for newcomers. Some Dutch banks don't like American customers because of the extra US reporting rules (called A US law that makes foreign banks report the accounts of American customers to the US tax office.), so ask before you make an appointment. Our guide to renting a home in the Netherlands explains deposits and contracts.
What it costs in 2026
| Item | Cost |
|---|---|
| IND fee, first application | €423 |
| IND fee, partner (each application or extension) | €254 |
| IND fee, child under 18 | €85 |
| KvK registration | about €85 |
| Money in the business | €4,500 (yours, but it must stay in the business) |
| Accountant's check and opening balance sheet | usually a few hundred euros |
| If you want: an immigration lawyer or DAFT service | usually €1,000 to €3,000 |
| Dutch health insurance, per adult | about €160 a month |
Many Americans apply without a lawyer. If your business is simple, the steps are easy to follow, and the IND's forms are in English. A lawyer is worth thinking about for a BV, a complicated business, or if you were refused before. To see what life here costs every month, try our cost of living calculator.
Bringing your family
Your partner and your children under 18 can apply for a residence permit to live with you. Your partner can be your husband or wife, your registered partner, or an unmarried partner if you can prove you have a lasting relationship. The IND checks whether you can pay for them. If you apply for your family at the same time as for your own DAFT permit, the IND looks at the income your business plan expects. Your partner's residence card should say that work is freely allowed (arbeid vrij toegestaan). Then they can take any job without a work permit. Children can go to Dutch state schools for free: see our guide to Dutch schools for expat children.
Renewing your permit
The first permit is usually valid for 2 years. When you extend it, often for 5 years, the IND checks that:
- you still live in the Netherlands and are still registered here;
- your business is active and registered with the KvK;
- the €4,500 is still in the business. Don't use it as spending money;
- you can pay for yourself and your family.
Keep good records from the first day: bills you sent, bank statements, tax returns and your KvK record. They are your proof when you renew.
Dutch taxes as a DAFT business owner
Once you live here, you are a Dutch Someone who lives in the Netherlands for tax purposes. You pay Dutch tax on your income from the whole world.. You pay Dutch income tax on your income from all over the world. Profit from an eenmanszaak is taxed in The Dutch tax office splits income into three boxes. Box 1 is income from work, business and your own home.: 35.75% up to €38,883, 37.56% up to €78,426, and 49.50% above that in 2026. If you spend at least 1,225 hours a year on your business, you get tax discounts for business owners. One is the self-employed deduction (zelfstandigenaftrek). In your first years there is also a starter's discount. You also add VAT to your bills (21% for most services) and send a VAT form to the tax office every three months. The exception is if you choose the small business scheme (Kleineondernemersregeling: a scheme for very small businesses. If you earn little, you don't have to charge or pay VAT.).
Two things Americans often expect but don't get:
- No 30% ruling. The 30% ruling is a tax benefit only for employees hired from abroad, not for people who work for themselves.
- Health insurance is required by law. When you live here, you must get Dutch basic health insurance within 4 months. Your US insurance doesn't count instead. See our guide to health insurance in the Netherlands.
US taxes don't stop when you leave
The US taxes its citizens wherever they live. So you keep sending a US tax return every year. A tax agreement between the US and the Netherlands, and the A US tax rule: tax you paid to another country is taken off the US tax you owe on the same income., usually stop you paying income tax twice. But the details matter:
- Self-employment tax: there is a social security agreement between the US and the Netherlands (a "totalization agreement"). Under it, people who work for themselves normally pay for social security only in the country where they live. Ask the Sociale Verzekeringsbank: the Dutch government office for social insurance, such as child benefit and the state pension. for a certificate of coverage, so you don't also pay US self-employment tax.
- FBAR and FATCA: you must tell the US Treasury about your Dutch bank accounts (the FBAR) when, together, they have more than $10,000 in them at any moment in the year. With larger amounts, you also list them on a separate form with your US tax return (Form 8938, under FATCA).
- Investments: for US tax, European investment funds count as Passive Foreign Investment Companies: a US tax category for most non-US investment funds. They are taxed very heavily by the US. and are taxed very heavily. Many Americans in the Netherlands stay away from them.
- Box 3: the Netherlands also taxes your savings and investments, including those still in the US, through box 3.
A tax adviser who knows both countries' systems usually saves you more than they cost in the first year.
Permanent residence and citizenship
After 5 years of living here legally without a break, you can apply for permanent residence. You usually need to pass the civic integration exam (inburgering), which includes Dutch language tests. So it is smart to start learning Dutch early. You can also become a Dutch citizen after 5 years. But the Netherlands usually asks you to give up your US citizenship when you do. There are exceptions, for example for husbands and wives of Dutch citizens. That's why many DAFT holders choose permanent residence instead.
Common mistakes
- Taking out the €4,500 soon after you apply. It must stay in the business.
- Taking a part-time job. DAFT doesn't allow salaried work for a Dutch employer.
- A business that only exists on paper. When you renew, the IND wants to see real work and income.
- Forgetting the US side: FBAR, self-employment tax and PFICs.
- Registering too late. In Amsterdam and other big cities, you may wait weeks for an appointment to register, and your 90 days without a visa keep counting.
Your DAFT checklist
- Choose a sole proprietorship or a BV, and write a short description of your business.
- Book a home where you are allowed to register, and an appointment to register with the municipality.
- Register your business with the KvK.
- Open a Dutch business account, put in at least €4,500, and have an accountant check it.
- Apply to the IND with the €423 fee, and apply for your family too if they come.
- Get Dutch health insurance and set up your VAT and bookkeeping.
- Get a certificate of coverage, and keep sending US tax returns and FBARs.
Official sources and useful links
- IND: residence permits for work, including self-employed persons
- IND: application form for self-employed persons, with the DAFT section (PDF)
- IND: fees for an application
- KvK: registering your business
- Business.gov.nl: starting and running a business in the Netherlands
- US Social Security Administration: US-Netherlands agreement
This is general information based on the IND's 2026 fees and rules. The IND looks at each application separately, and fees change every year on 1 January. For US tax questions, talk to an adviser who knows both the Dutch and the US systems.
