As the November U.S. presidential elections approach, many American citizens are contemplating fresh opportunities abroad. For those considering a new beginning in Europe, the Netherlands stands out as an attractive destination—thanks in large part to the Dutch-American Friendship Treaty (DAFT). This treaty provides a streamlined path for U.S. nationals to establish businesses and build new lives in the Netherlands.
Signed in 1956, the DAFT was designed to foster economic cooperation between the United States and the Netherlands. Decades later, it continues to serve as a valuable immigration pathway for U.S. citizens eager to engage in entrepreneurship or invest in Dutch enterprises.
Under the treaty, American citizens can obtain residence and work permits by setting up a legal entity in the Netherlands and making a qualifying investment. This framework opens doors for entrepreneurs, freelancers, and investors alike.
Compared to other immigration routes, the DAFT permit offers several advantages:
To take advantage of the DAFT, applicants must meet specific criteria:
Once these steps are completed, applicants can submit their application to the Immigration and Naturalization Service (IND) and expect a relatively swift decision. Permits can be issued for up to five years and are renewable.
Pros:
Cons:
For U.S. entrepreneurs, freelancers, and investors seeking to expand into Europe, the Dutch-American Friendship Treaty presents a uniquely favorable immigration pathway. With manageable requirements, fast processing, and long-term settlement possibilities, it offers Americans an opportunity to establish not just a business—but a new life—on Dutch soil.
Understanding the Dutch-American Friendship Treaty (DAFT)
Signed in 1956, the DAFT was designed to foster economic cooperation between the United States and the Netherlands. Decades later, it continues to serve as a valuable immigration pathway for U.S. citizens eager to engage in entrepreneurship or invest in Dutch enterprises.
Under the treaty, American citizens can obtain residence and work permits by setting up a legal entity in the Netherlands and making a qualifying investment. This framework opens doors for entrepreneurs, freelancers, and investors alike.
Why the DAFT Permit Stands Out
Compared to other immigration routes, the DAFT permit offers several advantages:
- Simplified eligibility: Unlike the regular Dutch self-employed permit, the DAFT does not require meeting the point-based system that measures a business’s economic value to the country.
- Faster processing: Applications are typically processed within 6–8 weeks, far quicker than the 3–6 months common for other permits.
- Flexibility in business types: Freelancers, small businesses, and larger enterprises can all qualify, with few restrictions on business scope or clientele.
- Tax benefits: Entrepreneurs who establish a Dutch BV may be eligible for the favorable 30% ruling, which can significantly reduce income tax.
- Family and long-term residency options: Spouses, partners, and children can join applicants, and after five years of residence, permanent residency may be pursued.
- Extended reach: The treaty’s benefits extend beyond the European Netherlands to the Dutch Caribbean territories, opening opportunities in regions like Aruba and Curaçao.
Key Requirements and Practical Steps
To take advantage of the DAFT, applicants must meet specific criteria:
- U.S. citizenship: Only American nationals qualify for this program.
- Business structure: Entrepreneurs may choose between various Dutch legal entities such as the eenmanszaak (sole proprietorship), BV (comparable to an LLC), or ZZP (freelancer).
- Initial investment: At least €4,500 must be deposited into the business’s Dutch bank account, and this capital must remain throughout the permit’s validity.
- Banking: A Dutch or EU-recognized online bank account (e.g., Wise or Bunq) can be used to meet this requirement.
- Compliance: A Dutch bookkeeper with a valid BECON number must prepare the company’s opening balance sheet.
Once these steps are completed, applicants can submit their application to the Immigration and Naturalization Service (IND) and expect a relatively swift decision. Permits can be issued for up to five years and are renewable.
Pros and Cons of the DAFT Pathway
Pros:
- Accessible compared to other visa categories
- Streamlined processing times
- Flexibility in business type and scale
- Potential access to tax advantages
- Family reunification and pathway to permanent residency
- Extended applicability in Dutch Caribbean territories
Cons:
- Only available to U.S. citizens
- Mandatory €4,500 capital requirement, which must remain untouched
- Certain benefits (like the 30% ruling) are limited to specific business structures (e.g., Dutch BV)
- Requires compliance with Dutch administrative and bookkeeping standards
Final Thoughts
For U.S. entrepreneurs, freelancers, and investors seeking to expand into Europe, the Dutch-American Friendship Treaty presents a uniquely favorable immigration pathway. With manageable requirements, fast processing, and long-term settlement possibilities, it offers Americans an opportunity to establish not just a business—but a new life—on Dutch soil.
