Working in the Netherlands as a US Freelancer : how to switch visa from HSM to DAFT

Lots of Americans move to the Netherlands to live and work here, and some of them end up setting up their own business. For example as a freelancer. It’s also possible for Americans to start working in regular employment in the Netherlands (for example as a Highly Skilled Migrant) and then subsequently transition into working self-employed or as a business owner under the Dutch American Friendship Treaty (“DAFT” in short). Any company in which you own at least 25% of the shares, however big or small, will work for this specific purpose. That includes freelancing companies. In this article we will explain the basics for Americans switching into freelancing from regular employment.

If you want to work as a freelancer in the Netherlands, you must register a company for it. It is not allowed to freelance unincorporated in the Netherlands. As a non-EU passport holder, you must then also obtain a valid visa to work self-employed in the Netherlands. If you are working in the Netherlands as a Highly Skilled Migrant (“HSM” in short) and think that makes your visa situation sorted out, think again. The HSM visa is tied to your regular employment, and thus the visa ends when the HSM employment ends (see below). Hence, as a non-EU passport holder you would normally be looking at the Self Employed Visa in order to obtain the right work permit to freelance in the Netherlands. This would require the preparation of a file substantiating the viability of your prospective business, containing for example financial forecasts, a business plan, business contracts and/or invoices. Not so for Americans. Americans can apply for the Dutch American Friendship Treaty (“DAFT” in short). DAFT is a simplification of the standard Self Employed Visa, which disposes of all the aforementioned requirements. They only need to meet the following criteria: have a US passport, set up a business in the Netherlands, deposit € 4,500 in that business’s bank account, and not have a criminal record in the Schengen area.

The DAFT visa gives the applicant a permit to work as a self employed person in the Netherlands. This means the main applicant can work as a freelancer, business owner, or in any type of business in which they own at least a 25% stake. The applicant may never work in regular employment. In Dutch the text will read “Arbeid als zelfstandige toegestaan, arbeid in loondienst niet toegestaan.” Americans already working in the Netherlands under another visa can quite easily shift to working self employed. For this the DAFT visa is excellently suited. Hereafter we will explain the particularities that arise when switching from a Highly Skilled Migrant (HSM) employment to freelancing. If you are new to the Netherlands and want to freelance here as an American, we have numerous articles explaining how to setup your DAFT correctly. 

US Highly Skilled Migrant (HSM) visa holders switching into freelancing

As of 2025, HSM visa holders may enjoy a 3-month grace period between their HSM employment and their prospective DAFT visa. Please bear in mind that your 3-month grace period can never exceed the end date of your HSM visa, as stated on your residence card. So if the end of your employment coincided with the end date of your HSM visa, you will not have a 3-month grace period. This means you must file a DAFT application before the HSM visa expires. Only if your employment terminates and your HSM permit continues until after that will you have a 3-month grace period. The 3-month period can never exceed the end date of the HSM visa.

If this isn’t applied correctly though, the timer towards 5 years for permanent residency will be reset to zero, because for this you need to have resided in the Netherlands for 5 years under a valid visa. Therefore make sure you have your ducks in a row before the 3-month period expires, and make sure the new visa application is in before then. 

The fact that you are already in-country on another visa, means you already have a BSN number. That simplifies your DAFT application process, because you don’t have to perform your Gemeente registration anymore. But that doesn’t mean your business with the IND is done. You will still need to show up at the IND appointment to pick up your residence endorsement sticker and drop off your biometrics if your previous biometrics appointment was longer than 6 months ago. Also, if you are bringing a spouse to your DAFT visa, you must provide the IND with your marriage certificate again (apostille is not required).

IMPORTANT: DAFT applicants already residing in the Netherlands under an HSM visa must submit their DAFT application in full. That means you need to have set up a company and bank account and have an opening balance sheet from an accountant before the 3-month grace period expires. Please factor these things in when deciding your timelines. It's best to err on the side of caution here, because you may end up with a residence gap.

Switching visas and the 30% ruling

Many expats working in the Netherlands, for example under the HSM visa, are also enjoying the 30% ruling. Beware that HSM and 30% ruling are two different things. The HSM is a visa handled by the immigration office IND. The 30% ruling is a tax break handled by the Dutch Tax Authorities (Belastingdienst). If you transfer from employment to self employment, your 30% ruling doesn’t automatically follow you. You need to apply for it in your new self employed capacity, and for this you must use a BV company. The 30% ruling also has a 3-month grace period. This means you have 3 months to sign your new labor contract (with your own company) starting at the end of your previous employment. NB: If you were put on any kind of (garden) leave in your previous work, the end date of that previous employment equals the start of that leave period, not the end date of your contract. The fact that your were being paid throughout that leave period is irrelevant. We have an extensive FAQ on the 30% ruling that answers a lot of other questions as well.

We hope this helps you on your way. If you have any particular questions, feel free to reach out!