Apply for Dutch American Friendship Treaty (DAFT) visa Netherlands
Dutch American Friendship Treaty visa for American entrepreneurs
Dutch American Friendship Treaty Requirements
Complete DAFT + BV + 30% package
We offer a complete DAFT + BV + 30% package, servicing you from A to Z. This means we take care of your DAFT, your BV incorporation and 30% ruling application.
We guard your timelines and make sure everything is 100% correct.
Basic information Dutch
American Friendship
Treaty visa
FAQs: the Dutch American Friendship Treaty (DAFT) visa
Is there a minimum or maximum age for acquiring the DAFT visa?
No, there is not. But if you want to bring dependent children under DAFT, they cannot be 18 years or older at the moment of application. If your child reaches 18 during the DAFT period or renewal, that's not a problem.
If you bring a child that is 18 or older, they may still join you under a family reunification procedure, or Art. 8 ECHR procedure. This process is separate but connected to the DAFT application, and requires proof that the child is financially dependent on you as a parent.
How far in advance should I start up the DAFT process?
Ideally, you should start up the DAFT process about 4-6 weeks before your migration. The most time-consuming part of the process is usually obtaining your official documentation : birth certificates, marriage certificates or declarations of unmarried status. These need to be original and apostilled. Birth certificates can be obtained online.
What is the duration of the DAFT visa grant?
You will be granted the DAFT visa for a period of 2 years. After this you need to apply for an extension. After 5 years, you can apply for permanent residence or citizenship.
How long do I have to wait before I get the DAFT visa?
Expect a period of 2 - 3 months before you receive confirmation of your DAFT visa application. But you will receive a sticker in your passport from the IND within weeks after your arrival. You can use this sticker to work and live in the Netherlands while waiting for the confirmation of your DAFT. Family members will only receive the right to work after the final verdict on the DAFT visa, not with the sticker.
What are the IND registration fees associated with the DAFT application?
The current (2024) IND fees for your DAFT registration are as follows:
- The main applicant : € 380
- The spouse or partner: € 228
- Children: € 76
Can I work in regular employment under DAFT?
No. DAFT is a self-employment visa. You can never use it to work in regular employment. If you do wish to move in that direction, consider the EU Blue Card or the HSM visa. Any joining family members under DAFT in fact are able to work in regular employment, once they have received the final verdict on the DAFT application.
What happens if my application is denied?
The rules are fixed, and if you meet the requirements your application cannot be denied. In the odd case this does happen, you can appeal and remain in-country for the remainder of that procedure.
I want to continue working for my US clients under DAFT. how does that work?
You can do this under DAFT. You continue your work as usual, except now you invoice your US clients from your new Dutch company and let them pay to your Dutch company’s bank account.
Are there any better visa options for Americans in the Netherlands, besides DAFT?
No, the are not. In fact, DAFT is arguably the best and easiest obtainable visa in the entire Dutch visa system. The only easier alternative would be having an EU passport, or having a partner or spouse with an EU passport.
What is the partial non-resident status and should I opt in for it?
The partial non-resident status does not come automatically with DAFT. It comes with the 30% ruling which you may be able to apply for separately. The non-resident status is an exemption for filing Dutch income tax returns for Box 2 (shareholdings >5%) and Box 3 (shareholdings <5%, liquid assets, savings accounts, crypto). The exemption means you are not taxed in the Netherlands and you don’t even have to report it as world income. If you have a 30% ruling, you can opt in for partial non-resident status as part of your annual income tax returns, and it comes highly recommended.
When can I apply for permanent residency?
You can apply for permanent residency after 5 years. This means you need to renew your DAFT visa twice, as it is granted for 2 years.
Does DAFT offer any nice tax breaks?
DAFT itself does not come with any tax benefits. But under certain circumstances, you may be able to make use of certain attractive Dutch tax breaks. Another article explains tax breaks and benefits of the DAFT visa.
Do I need to have (prospective) business clients in the Netherlands?
No you don’t. Your clients can come from anywhere.
Do I have to have my BSN number before I move to the Netherlands?
No, you always obtain this number after you arrive in the Netherlands. Sometimes you receive a non-resident BSN number as part of a BV registration prior to your arrival, but this BSN number still needs to be switched to resident, so you still need to show up at the Dutch town hall and register yourself.
Does my Dutch business require a Dutch bank account?
No, your Dutch business can have a bank account from anywhere. That includes online banks such as wise.com or Revolut.
Am I eligible for unemployment benefits under DAFT?
No you cannot claim unemployment benefits under the so-called "Participatiewet" (previously "Wet werk en bijstand"). This includes elder unemployment benefits (AIO), juvenile unemployment benefits (WAJONG), self employed benefits (BBZ), benefits for partly disabled employees and self employed (IOAW and IOAZ) and benefits for temporary labor disability (WBIA).
For my BSN application I want to register myself at a friend's house. Does that work?
Yes it does. You can let your friend sign a Declaration of Consent to that effect. All major Dutch cities offer a template declaration on their websites.
Am I allowed to move in and out of the country during the DAFT application process? Or am I required to sit tight ?
You are allowed to move in and out of the country as you please during the DAFT application process. This is different from, for example, the US Green Card procedure.
Can my dependent family members study in the Netherlands under DAFT ?
Yes they can, but only after they have obtained the final verdict on their DAFT application. The residence endorsement sticker is not enough here.
Are there any groups or forums for preparing my DAFT migration?
Facebook has a good DAFT group called DAFThub.
Do I have to get a company bank account before I move to the Netherlands?
You cannot get a company bank account before you've registered your company. After you've registered your company, you can get a bank account at a Dutch local bank or an online bank like wise.com or Revolut.
I expect to change my line of work during the course of my DAFT. Is that possible?
Yes, you can easily add a statutory goal to your Dutch company later on, or you can add a separate Dutch company to diversify your business. This does not impede on your DAFT, as long as you keep the € 4,500 on your bank account. If you run a B.V., make sure the € 4,500 is a contribution to the share capital and that the Equity of the company never drops below € 4,500.
Are there any changes to be expected for the DAFT application process in 2024?
The DAFT application process currently is being expedited by the IND. That means that all applicants from 2024 and onwards will experience a very fast response from the IND to their application : about 6-8 weeks after submission of the application.
Is there a diploma requirement for DAFT?
No, there is not.
Is there a business plan requirement for DAFT?
No, there is not.
How long am I required to reside in the Netherlands per year under DAFT?
8 months per year, prorated. So that’s two thirds of the time. That means you can reside abroad for up to 4 months per year.
How do I deposit my € 4,500 in my company, as required by DAFT?
First open up a bank account in the name of your company. Then deposit the cash in there. It’s that simple. Your bank doesn’t have to be Dutch, so wise.com for example is an option. If you have a Dutch B.V., make sure the payment is a contribution to the nominal share capital of the company.
Is there a check on how much income I generate out of my new Dutch business?
No, your income does not get checked as part of your DAFT application process, and your DAFT will not be jeopardized if your business is not successful at first. But this will change when you decide to apply for welfare / unemployment benefits. Also, once your DAFT is up for renewal after 2 years, your financials will come into the picture. Certainly by that time, you must have a sustainable business going on. “Sustainable” here means you must be able to withdraw at least € 2,000 per month in salary from it.
I am in the Netherlands on a Highly Skilled Migrant (HSM) Visa. I want to switch to DAFT. I have a 3 month grace period for this, right?
No you don’t! This is the most often-made mistake we encounter. The 3-month grace period is only for switching from one HSM employment to another HSM employment. Not to switch from HSM to a new kind of visa, such as DAFT. Another article explains the process of switching from HSM to DAFT.
I hear I need to have at least 2-3 clients for DAFT.
This rule is not about DAFT, but about the business type ZZP/eenmanszaak that you can choose under DAFT. Here it applies if you want to meet the tax break requirements. If you work from a BV this requirement does not apply.
I want to make an appointment at the IND but I don’t have a V-number ?
As part of the DAFT process you need to make 2 appointments at the IND : one for your biometrics, and one for your residence endorsement sticker. You can only make these appointments when you have your V-number. Your V-number becomes available only after submission of your DAFT application at the IND, together with the invoice for your DAFT fees.
Do I have to have Dutch clients in my DAFT business?
No, your clients can come from anywhere.
I need an accountant as part of my DAFT process. Can you guys help with that?
Feel free to reach out to our partners at UWBS. They know exactly what is required.
How does my municipality registration work?
First, make sure you have your residence endorsement sticker from the IND in your passport. Then, check on the website of your municipality how to book a meeting and what to bring. If you wish, we can also arrange a BSN meeting for you at the Amsterdam Expat Center INAmsterdam.
How do I choose between company forms under DAFT?
There are two main company forms : the BV and the ZZP/eenmanszaak. The choice boils down to whether you are eligible for the 30% ruling. If you are eligible for the 30% ruling, another article explains how to choose between ZZP/eenmanszaak and BV+30%. If you are not eligible for the 30% ruling, yet another article explains the basic differences between the ZZP/eenmanszaak and the BV.
I already own a US LLC. Can I register that LLC in the Netherlands and use that to apply for DAFT?
You can register a foreign legal entity, such as an LLC, in the Dutch Chamber of Commerce and work from there. Currently the IND does not accept such a registration for your DAFT application. In any case, working from a Dutch-registered self owned LLC is generally a bad idea:
- Your Dutch-registered LLC will gain a "permanent establishment" in the Netherlands. This is normally not the case if you keep your LLC idle in the US. "Permanent establishment" status makes the LLC subject to Dutch corporate income tax just like a regular Dutch BV. The LLC remains subject to US taxes, but those are income taxes because the LLC is considered a see-through entity under US tax law. Because of this disparity, taxes paid in the Netherlands cannot be offset against taxes paid in the US as you normally would.
- A Dutch-registered LLC will have a very hard time passing KYC hurdles, for example when obtaining a Dutch bank account.
- There are no cost advantages to having a Dutch-registered LLC:
(a) It will have Dutch accounting obligations in addition to US accounting obligations. Dutch accounting for a Dutch-registered LLC is more difficult, hence more expensive.
(b) The cost of registering an LLC at the KVK is similar to registering a new BV.
I have a very succesful LLC going in the US. Can I just register a simple Dutch company on the side, meet the DAFT requirements to the minimal extent, and continue to work from my US LLC .
1. If you continue working from your US LLC in the Netherlands, you will not continue your US tax situation as if nothing has changed. If you are working from the Netherlands under DAFT, you are going to pay taxes over that work in the Netherlands. Taxes in the Netherlands are generally much higher than in the US, so you would be best advised to structure a Dutch business in accordance with Dutch tax advantages such as the ZZP eenmanszaak tax breaks or the 30% ruling. These are not (readily) available to you if you keep working from your US LLC in the Netherlands.
2. Your Dutch business must meet the minimum DAFT income requirements. This means you must be able to earn your keep (€ 1,800-ish per month) from about month 7 onwards. This will not be checked on a continuous monthly basis, but it will be under review once you try to renew your DAFT after 2 years.
Do I need to have the DAFT visa before I move to the Netherlands?
No, you get the DAFT after you arrive in the Netherlands, never before. You enter the Netherlands with a Schengen 90-day visa, and then pick up your residence endorsement sticker after about 1-2 weeks in-country. This sticker grants you all the DAFT rights straight off the bat. That includes the right to work self employed and reside in the Netherlands, and hop in and out of the country as you please.
Can I use the DAFT visa to visit or work in other EU countries?
The DAFT visa only grants you work and residence rights in the Netherlands. Your right to travel to other EU countries is still dictated by the Schengen 90-day rule. Only EU passport holders may make use of free residence and labor within the EU. DAFT does ensure you don't spend Schengen days in the Netherlands, from the moment of your residence endorsement sticker onwards.
I have already obtained a residence permit in another EU country. Do I still need the DAFT visa if I want to work and live in the Netherlands?
A residence permit in one EU country does not give you any work or residence rights in other EU countries. Only if you have obtained a passport in one EU country can you make use of the freedom to settle in other EU countries.
Can I bring along my family on the DAFT visa?
Yes you can. As part of your DAFT visa grant, your spouse and under-age children are granted the right to live and to work in the Netherlands as well. Your spouse and children actually have more rights than you, because they are free to work self employed and in regular employment. If your family members don’t have a US passport, their immigration process may become a bit more complex on account of the MVV (temporary residence permit) requirement that applies to many passport holders bar Americans and a few others nationalities. Family members under DAFT are only allowed to work after the final verdict on the DAFT application, not immediately after obtaining the sticker in their passport upon arrival in the Netherlands, as is the case for the main applicant. Another article goes into more detail about family members under the Dutch American Friendship Treaty visa.
What is the maximum age for accompanying children under DAFT?
17 years. Once your kids are 18, they are required to obtain their own separate visa. If they turn 18 during the DAFT visa period, they get to keep the visa until it comes up for renewal after 2 years.
At what point do I start to pay taxes under DAFT?
You only pay taxes over what you earn. If your business is slow or inactive for a while, you don’t pay taxes. In another article we explain more about business taxes under DAFT.
I have a BV and 30% ruling. What can I expect in terms of taxes and costs?
With a 30% ruling, you will want to pay out as much salary as you can. That means you don't have any profits left, so no profit taxes either. You don't pay payroll taxes on top of your salary, because you are director. VAT is not a cost. If you pay it you reclaim it, if you receive it you repay it. What remains is your operational costs, such as office lease, accountant, laptop, business trips. Also your relocation costs and child's schooling costs may be expensed.
I can get a 30% ruling in addition to my DAFT. Are there additional benefits to the 30% ruling?
Our 30% ruling FAQ page explains in more detail. Quite a few actually:
1. You can opt for ‘partial non-residency status’. You will remain tax resident for income purposes, but not for taxation on substantial interest (Box 2) and savings and investments (Box 3). This is almost always an attractive option.
2. As a foreigner you normally must take a new driving test to obtain a Dutch driver’s license. But when you have a 30% ruling you can simply exchange your foreign driver’s license for a Dutch one.
3. Your employer can reimburse your children’s education costs tax-free, under the condition that this education is being provided at an institution specialized in educating foreign expatriate children in the Netherlands.
In addition to this, your employer may reimburse the following costs, tax free :
- relocation of your household goods to the Netherlands;
- plane tickets for you and your family to the Netherlands;
- compensation of relocation costs up to € 7,750 (2024).
Please make sure you keep the invoices and receipts for this in your file.
If I come to Holland under DAFT, what’s going to happen with my US income and assets?
First, bear in mind there is a double-taxation treaty in effect between the Netherlands and the US. This means you will never be taxed twice. Income earned in the Netherlands is first taxed in the Netherlands and at a higher rate than the US would tax it. That means the IRS cannot tax on top of it again. You are still required to file income tax returns in the US, although you will probably wind up not actually paying any taxes. Having a 30% ruling is a huge help on account of the partial-non resident tax status. In another article we explain the US/NL tax situation in broad terms.
I plan to start my DAFT working from a ZZP. Can I change to a BV later?
Yes you can change a ZZP to a BV later. But you can never get a 30% ruling in your BV after you’ve setup a ZZP first.
How does the 183 day rule work under DAFT?
The 183 day rule is one of the factors used to decide your tax residence in one country or the other, not your visa. During the DAFT application process, it is of no importance. If you work and live in the Netherlands, you are a tax resident here. Check our DAFT tax guide for more info.
How does the "foreign work days tax exemption" work?
If you have a 30% ruling, you can opt in for partial non-resident tax status. If you also have a US income tax filing obligation, this means that any days spent working outside Holland (for example business trips or workations) can be exempted from Dutch (box 1) income tax.
I am already working in the Netherlands as a Highly Skilled Migrant (HSM) employee. Can I use the DAFT visa to switch to self employment?
Yes you can. Another article explains how you switch from HSM to the DAFT visa.
My US clients insist on giving me paychecks instead of paying to my new Dutch company's bank account. How do I deal with this?
The Netherlands (much like the rest of the world) does not deal with pay checks. Your clients must pay to your new Dutch company's bank account, or find a service provider that will intermediate with that. Your Dutch business must receive payment on your invoices, otherwise it will not count towards your company's revenue.
When I showed up at the municipality, it turned out I already had a BSN number. How is this possible ?
If you incorporated a BV company, you may have received a BSN number as part of the Chamber of Commerce registration. That BSN number is an RNI (non-resident) BSN. It usually gets sent to your address back home. Upon registration at your municipality, they will change the BSN from RNI to a normal, resident version.