DAFT Visa: The US Entrepreneur’s Guide to the Netherlands

In short

The DAFT visa allows US citizens to start a business in the Netherlands with €4,500 in capital and no points-based test. The first residence permit is valid for two years and can be renewed, which makes it the most accessible route for American entrepreneurs and founders relocating to the Netherlands.

The €4,500 is not a fee. It is own capital of the business, it has to be recorded as capital on the balance sheet, and it has to remain in the business throughout the permit period. The figures must be confirmed by a Dutch accountant or tax adviser with a Becon number; a declaration from a US accountant is not accepted.

The DAFT visa is the most accessible route for US citizens who want to live in the Netherlands and work for their own account. The conditions are limited: a US passport, a business registered in the Netherlands and at least €4,500 of own capital in that business. There is no points assessment and no language requirement.

This guide sets out the conditions, the capital requirement and the timeline. It also covers the one document a US entrepreneur cannot prepare alone: the financial statement the Dutch immigration service requires, which has to be signed by a Dutch financial professional.

1. What is the DAFT visa and who qualifies?

The Dutch–American Friendship Treaty is a Treaty of Friendship, Commerce and Navigation, signed at The Hague on 27 March 1956. It requires each country to admit nationals of the other who wish to carry on trade or conduct a business on their own account. The Netherlands gives effect to this through the existing residence permit for self-employed work (arbeid als zelfstandige), with adjusted assessment criteria for US nationals.

The adjustment concerns the points assessment. Applicants of other nationalities must demonstrate, under a points system, that their business has sufficient added value for the Dutch economy. US nationals are exempt from that test. What remains are the administrative conditions and the capital requirement of €4,500.

Formally, the DAFT visa is a residence permit granted by the Immigration and Naturalisation Service (IND) rather than a visa. The distinction matters in one practical respect: US citizens are exempt from the Dutch long-stay entry visa (MVV), so there is no consular procedure to complete before travelling to the Netherlands.

Who qualifies

• US nationals. A US passport is required. Permanent residence in the United States is not sufficient.
• Entrepreneurs working for their own account. The activity must be genuinely independent and carried on from the Netherlands.
• Family members. A spouse or partner and minor children can apply to join the entrepreneur, without a separate capital requirement.

The DAFT visa does not allow employment with an unrelated Dutch employer, and it does not allow residence without business activity. The IND assesses whether the business is actually carried on, including at the moment of renewal.

2. What are the DAFT visa requirements?

The requirements are limited and largely objective:

• Nationality: A valid US passport. Permanent residents of the United States do not qualify.
• Business activity: Self-employed activity carried on from the Netherlands, for the applicant’s own account and risk.
• Capital: At least €4,500 of own capital in the business, maintained for the entire duration of the permit.
• Legal form: Sole proprietorship (eenmanszaak), partnership (VOF) or private limited company (BV). In the case of a BV, a shareholding of at least 25% is generally required in order to qualify as self-employed.
• Registration: Registration of the business with the Dutch Chamber of Commerce (KvK).
• Financial evidence: An opening balance sheet, verified by an independent Dutch financial professional.
• Points assessment: Not applicable. This is the principal advantage of the treaty route.
• Language and integration: Not required for the permit. These requirements become relevant for permanent residence or naturalisation.
• Duration: Two years for the first permit. On renewal a longer term is generally granted.

The IND currently allows a first application to be submitted before the business has been registered with the KvK and before the capital has been contributed. In that case the applicant has a period after the permit has been granted in which both must be completed. This is practical, since a Dutch business bank account is easier to open once the applicant is resident in the Netherlands. The financial evidence is not waived; it is required at a later stage, and at renewal the capital is assessed over the entire permit period.

3. How much capital do you need to invest for the DAFT visa?

The amount is €4,500 per entrepreneur. Three points determine whether the requirement is actually met.

It is not a fee

The €4,500 is not paid to the Dutch government. It is capital contributed to the applicant’s own business and remains available for business purposes, such as equipment, software, workspace and professional costs. The condition is that the own capital of the business does not fall below €4,500. The IND application fees are separate and are set annually.

It must be recorded as capital

The requirement concerns own capital, which is a balance sheet item. If a BV is financed by a shareholder loan of €4,500, the balance sheet shows a liability to the shareholder and almost no own capital, so the requirement is not met. The same amount contributed as share capital or share premium does meet it. In a sole proprietorship the equivalent is the capital account of the entrepreneur, recorded as a contribution on the opening balance sheet.

It must remain present

The requirement applies throughout the permit period. At renewal the IND requests the annual figures and assesses whether the business has been active and whether the invested capital has remained in the business. Withdrawals for private expenditure during a first year with limited turnover can therefore create a problem at renewal.

Practical point

In the figures we review, two issues recur: capital contributed as a shareholder loan rather than as equity, and capital withdrawn during the permit period. Both can be avoided at the outset. If salary or profit is withdrawn from the business, the withdrawals should be set so that the own capital remains above €4,500 at each balance sheet date.

4. What types of business qualify under DAFT?

There is no list of approved activities and no sector restriction. Because the points assessment does not apply, the IND does not weigh the innovative character, the growth potential or the economic added value of the business. Consultants, software developers, designers, translators, trainers, importers and exporters, and holders of a small production or service business all use the treaty route.

What does matter is the nature of the relationship. The activity has to be genuinely independent, carried on for the entrepreneur’s own account and risk. Once you become resident, your Dutch tax residency also determines how the Netherlands taxes your worldwide income and assets. A single principal, particularly a former employer, raises the question of whether the arrangement is in substance an employment relationship. That question arises twice: with the IND for the permit, and with the Dutch tax authority for payroll tax purposes. Regulated professions form a second point of attention, since the applicable Dutch licences and registrations must be in place.

The legal form is free. An eenmanszaak is the simplest starting point; US founders considering a company structure should also understand the interaction between Dutch holding companies and US PFIC rules. a BV is more suitable where liability, a future sale or access to the 30% ruling plays a role. The choice has tax consequences that are easier to arrange at the start than to correct later.

5. How long does the DAFT visa application take?

The IND has a statutory decision period of 90 days for a residence permit application, and in practice decisions are frequently given sooner. The waiting time in individual cases depends on the workload at the IND and on the completeness of the file.

The part of the timeline the applicant controls is the documentation. A file is submitted when the last document is in, and in practice that last document is usually the financial statement, because it is the only one that has to come from a third party. This is where our role starts.

6. Who must sign the financial statement?

Most documents in a DAFT application can be collected by the applicant: the passport copy, the KvK extract, the bank statement and the forms. The financial documents cannot.

The IND requires the financial evidence to be verified by an independent external expert. In practice this is:

• a registered accountant (RA) or accountant-administratieconsulent (AA);
• a tax adviser who is a member of a recognised Dutch professional organisation, such as the RB, the NOB or the NOAB; or
• an administrator or tax intermediary holding a Becon number, the registration number issued by the Dutch tax authority to recognised tax intermediaries.

Two documents are relevant. At the start, an opening balance sheet showing the assets and the own capital of the business. At renewal, and where the entrepreneur acts as sponsor for a family member, the IND declaration on the income of a self-employed person, together with the annual figures and a compilation report.

Neither document can be drawn up by the applicant. A declaration by a US accountant is not accepted either, because the requirement is linked to Dutch professional registration.

7. How Port Sight Tax can help

We do not submit DAFT applications and we do not advise on immigration law. For the permit itself, an immigration lawyer or a specialised immigration adviser should be engaged.

We provide the financial part. Our office holds a Becon number and prepares and signs the opening balance sheet and the capital statement for the application, and the IND income declaration for a renewal. In most cases we deliver within 24 hours of receiving complete information.

For entrepreneurs and expats navigating the Dutch tax system, we also advise on the tax consequences of the choices made at the start: eenmanszaak or BV, the effect on the 30% ruling, the treatment of the income under the tax treaty between the Netherlands and the United States, and the position of existing US assets and structures under Dutch law. Entrepreneurs relocating with a US trust can also read our analysis of US trusts, DAFT migrants and Dutch taxation. For a broader overview, our guide to Dutch income, corporate and expat taxes explains how the main Dutch tax regimes interact. We advise on Dutch and international tax. We do not advise on US federal or state tax and refer clients to one of our US partner firms where a US position has to be taken.

The 24-hour turnaround assumes complete and correct figures and the underlying documentation. The statement confirms the figures of the business. It does not bind the IND, and the decision on the permit is taken by the IND.

This article provides general information and does not constitute legal, immigration or tax advice. Port Sight Tax does not advise on immigration law and does not submit residence permit applications; for the permit itself, please consult a qualified immigration adviser. We advise on Dutch and international tax matters and not on US federal or state tax. Immigration rules and IND policy are subject to change. Always verify the current requirements with the IND for your own situation.