In short
Under the Dutch-American Friendship Treaty (DAFT), US citizens can get a residence permit as self-employed if they invest at least €4,500 in their own Dutch business — a sole proprietorship (eenmanszaak), a partnership or a BV. The investment must show in a business bank statement and balance sheet checked by an accountant or other financial expert, and the business must be registered with KvK and the money invested within 6 months of the IND decision. Americans need no entry visa and can apply after arriving; the IND fee is €423 in 2026. The first permit lasts up to 2 years and is extended for 5 years if the business is active and the €4,500 is still invested — there is no income test at extension. Family members may work freely. Permanent residence after 5 years does require a civic integration diploma and sufficient income. Japanese citizens have the same route.
Netherlands daft: key facts
Last verified 28 September 2026| DAFT (Dutch-American Friendship Treaty) | Self-employed permit for US (and Japanese) citizens: invest at least €4,500 in your own Dutch business, register with KvK and invest within 6 months of the IND decision# Source: IND: Residence permit self-employed person (US/Japanese nationals) · IND form 7524: Application self-employed (2026) |
|---|---|
| DAFT permit length | First permit up to 2 years; extended for 5 years if the business is active and the €4,500 is still invested — no income test at extension# Source: IND: Residence permit self-employed person (US/Japanese nationals) · Mynta: DAFT knowledge base |
| DAFT family | Family members of a DAFT holder may work freely in the Netherlands# Source: IND: Residence permit self-employed person (US/Japanese nationals) |
| IND fee | €423 in 2026 for a self-employed (incl. DAFT), highly skilled migrant, Blue Card or start-up permit; partner €254, child €85# Source: IND: Fees (valid 1 Jan–31 Dec 2026) |
| Entry visa | US citizens are exempt from the entry visa (MVV) and can apply for a residence permit after arriving visa-free# Source: IND: MVV exemptions |
| Municipal registration | Register in person within 5 days of arrival if staying more than 4 months; you get your BSN (citizen service number)# Source: Netherlands Worldwide: When to register |
| Health insurance | Mandatory Dutch basic insurance within 4 months of arrival — about €159 a month on average in 2026, with a €385 yearly deductible# Source: Government.nl: Health insurance and residence permit · Consumentenbond: Zorgverzekeringen 2026 · Overstappen.nl: Zorgpremies 2026 bekend |
| Permanent residence | After 5 years: civic integration diploma and sustainable, sufficient income required (fee €254)# Source: IND: Long-term EU resident permit · IND: Fees (valid 1 Jan–31 Dec 2026) |
| Citizenship | Naturalisation after 5 years with a civic integration exam (at least A2); you must normally give up US citizenship, unless an exemption applies (e.g. married to a Dutch citizen)# Source: IND: Becoming a Dutch national through naturalisation · IND: Renouncing your nationality |
| US Social Security agreement | In force since 1990 — self-employed people living in the Netherlands usually pay into the Dutch system only# Source: SSA: Totalization Agreement with Netherlands |
| Sole-trader deductions | 2026: self-employed deduction €1,200 (1,225-hour test) and 12.7% SME profit exemption# Source: SRA: Nieuwe belastingtarieven, -kortingen en faciliteiten 2026 · KVK: Eenmanszaak (sole proprietorship) |
| Dutch banks and US citizens | Banks report US account holders under FATCA and ask for your US tax number; some refuse or close accounts without it# Source: IRS: FATCA · DutchNews: Dutch bank can close accidental American's account, court says |
Not American?
Canadians, Australians, Brits and other non-EU citizens: the same rules apply
The DAFT is a treaty route, so nationality matters:
- Canada
- Australia
- New Zealand
- United Kingdom
- Japan
- South Korea
- + other visa-free countries
| Japanese citizens | Have the same route under the Dutch-Japanese trade treaty. |
|---|---|
| Other non-EU citizens | Use the regular self-employed permit, scored on experience, business plan and added value, with a minimum gross profit of €1,766.77 a month. |
| EU citizens | Need no permit to be self-employed in the Netherlands. |
| Documents from abroad | Need an apostille; the US, Canada (since 11 Jan 2024), the UK, Australia and NZ issue them.Source: HCCH: Apostille Convention status table |
Overview
The DAFT — Overview
The Treaty of Friendship, Commerce and Navigation between the Netherlands and the United States was signed in 1956. It lets US citizens set up and run a business in the Netherlands on easier terms than other non-EU nationals: the IND does not score your plan on points and does not set a minimum income when you renew.
The permit is for running your own business. Working as an employee for someone else needs a different permit — until you have worked in the Netherlands for 5 years.
The DAFT is light on paperwork but strict on substance — keep the €4,500 in the business, keep proper books and make sure the business is really active.
Who Qualifies
Who Qualifies for the DAFT
US citizenship
You must be a US citizen (or a Japanese citizen under the parallel treaty).
Your own business
A sole proprietorship (eenmanszaak), a partnership (VOF) or a BV/NV — the IND has a document list for each.
€4,500 invested
Shown in the business's own bank account and its (opening) balance sheet — a personal account is not accepted.
Checked by an expert
Financial documents are checked by an authorised independent expert — a chartered accountant, bookkeeper or financial adviser.
Registered and active
The business is registered with KvK and the money invested within 6 months of the IND decision.
Benefits
What You Get
Apply after arriving
US citizens are exempt from the entry visa (MVV) and can apply for a residence permit after arriving visa-free.
A permit up to 2 years, then 5
At extension the IND checks that the business is active and the €4,500 is still invested — there is no income test.
Work rights for your family
Your partner and children can work as employees or be self-employed without a separate work permit.
A path to permanent residence
After 5 years — with a civic integration diploma and sustainable, sufficient income.
Limits
What to Watch Out For
Employment needs another permit
The DAFT covers your own business; a job with another employer needs a work permit until you have worked here 5 years.
Income matters later
There is no income test at renewal, but permanent residence and family reunification have income requirements.
IND compliance checks
Since late February 2026 the IND has sent some DAFT holders letters asking for evidence that their business is active, according to Dutch immigration lawyers. Keep invoices, contracts and accounts in order.
Citizenship usually means giving up US nationality
Naturalisation after 5 years with a civic integration exam (at least A2); you must normally give up US citizenship, unless an exemption applies (e.g. married to a Dutch citizen).
Application
Core Documents Required
| Document | Notes |
|---|---|
| Application form 7524 | With the IND fee of €423 |
| Valid US passport | Copy of the personal pages |
| KvK registration | Extract for your eenmanszaak, VOF or BV |
| Business bank statement | Showing at least €4,500 in the business's own account |
| (Opening) balance sheet | Showing the €4,500 investment, checked by an accountant, bookkeeper or financial adviser |
| Antecedents certificate | A signed self-declaration about criminal history, part of the application (every applicant aged 12+) |
| Apostilled civil documents | Birth and marriage certificates for family members |
Based on IND form 7524 (2026). Source: IND: form 7524
Step by Step
Application Process — Step by Step
Choose your business form
Sole proprietorship, partnership or BV — consider tax and US reporting (a BV brings Form 5471).
Enter the Netherlands visa-free
Find an address you can register at.
Register with the municipality
Register in person within 5 days of arrival if staying more than 4 months; you get your BSN (citizen service number).
Register the business with KvK
A one-off fee of €85.15 in 2026; most registrations need an in-person appointment and a Dutch business address.
Open a business bank account and invest €4,500
Have the balance sheet checked by an accountant or other financial expert.
Apply to the IND
Submit form 7524 with the €423 fee. Then take out Dutch health insurance within 4 months.
Tax
How Are DAFT Entrepreneurs Taxed?
Sole traders pay Dutch income tax on their profit in Box 1 — 35.75% to 49.50% in 2026 — after the self-employed deduction (€1,200 in 2026, for at least 1,225 hours a year) and the 12.7% SME profit exemption. A BV pays corporate tax of 19% on the first €200,000 and 25.8% above. Every business gets a VAT number on KvK registration.
You still file a US return, an FBAR and possibly Form 8938. In force since 1990 — self-employed people living in the Netherlands usually pay into the Dutch system only, which avoids paying self-employment tax in both countries. The 30% ruling does not apply to sole traders.
Why the DAFT
Why US Citizens Choose the DAFT Route
Low entry cost
€4,500 in your own business — compared with the points test and €1,766.77 monthly profit required on the regular self-employed route.
Family flexibility
Your partner can work for any employer.
Simple renewal
An active business and the €4,500 still invested.
The DAFT could be right for you if
- You are a US citizen and want to run your own business.
- You can keep €4,500 invested and keep proper accounts.
- Your work does not depend on a Dutch employer.
- You are comfortable that citizenship normally means giving up your US passport.
FAQ
Frequently asked questions
What is the Dutch-American Friendship Treaty (DAFT)?
A 1956 treaty that lets US citizens get a Dutch residence permit as self-employed if they invest at least €4,500 in their own business in the Netherlands.
How much capital do I need for the DAFT?
At least €4,500, held in the business's own bank account and shown in its balance sheet. It must stay invested to renew the permit.
Is there an income requirement?
Not at application or extension. Permanent residence after 5 years does require sustainable, sufficient income.
Can my spouse work?
Yes. Family members of a DAFT holder may work as employees or be self-employed without a separate work permit.
Does the DAFT lead to Dutch citizenship?
After 5 years you can naturalise with a civic integration exam, but you must normally give up US citizenship. Permanent residence is the usual alternative.
Netherlands
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