A step-by-step guide to securing a DAFT visa for American expats

Established under the Dutch American Friendship Treaty of 1956, the DAFT visa is a special residency permit offering a straightforward path to living and working in the Netherlands, whether you are an entrepreneur, freelancer, or investor looking to make your mark in Europe.

Key benefits of the DAFT visa

The DAFT visa offers the following key benefits:

• Unlike other visas, it does not require a separate work permit or involve the complex “point system” used for Dutch self-employed visas.
• You do not need to know Dutch to obtain this visa.
• The visa also allows your partner and dependent children to apply for residence permits.
• There is no restriction on the type of business you can start, whether it is a tech startup, consultancy, or retail operation.

Essential criteria breakdown

To be eligible for a DAFT visa, you will need to adhere to the following requirements:

• You need to hold a valid U.S. passport.
• You must provide an original apostilled birth certificate for yourself and any dependent family members.
• You must invest at least 4.500 euros into your business, which must remain in your business account for the entire duration of your visa.
• You should have a clean legal record, with no prior issues such as unauthorised stays in the Netherlands or criminal convictions.

Choosing between BV and ZZP: Which business structure fits your needs better?

Starting a business in the Netherlands involves choosing the right structure to optimise benefits. Two common options are the BV (Besloten Vennootschap), a private limited liability company, and the ZZP (Zelfstandige Zonder Personeel), a sole proprietorship. Here is a simple guide to help you decide.

If you are new to the Netherlands, forming a BV is often preferable. A BV qualifies for the 30 percent tax ruling, which lets you keep 30 percent of your income tax-free and enables you to cover relocation costs and school fees. It also simplifies exchanging a foreign driver’s licence for a Dutch one. To benefit from this ruling, you need to establish your BV and be employed by it before moving to the Netherlands.

In contrast, a ZZP does not offer the 30 percent ruling benefits and has different tax implications. ZZP holders handle their own social security and may have fewer deductions.

Your DAFT visa application: A detailed step-by-step process

To make it easier for you, here is a step-by-step guide on what you will need to do when you apply for a DAFT visa.

Before coming to the Netherlands

Before coming to the Netherlands, you will need to:

1. Secure a Dutch address for receiving government mail and registering your business, whether it is a private rental, a friend's place, or a temporary postal address.

2. Complete the application form, including the Antecedents Certificate. You can skip the V-number, BSN (Citizen Service Number), and KvK (Chamber of Commerce) Registration numbers for now. You will receive your V-number within two weeks.

3. Send the application form to the IND (Immigration and Naturalisation Service) with copies of stamped passport pages. Supporting documents can be submitted later.

4. Optional: Prepare a business plan outlining your idea, target market, strategy, and financial projections to help Dutch authorities assess your business's viability.

After arriving in the Netherlands

After arriving in the Netherlands, you will need to:

1. Use your V-number to book an IND appointment to provide biometric data. You must bring your U.S. passport and proof of IND payment. Also, obtain a residence endorsement sticker (verblijfssticker) to stay and work in the Netherlands while your DAFT application is processed. You will soon receive a letter to pay the 380 euros application fee.

2. Schedule an appointment with the municipality (gemeente) to register and get your BSN. You should bring your passport, apostilled birth certificate (also an apostilled marriage certificate or certificate of unmarried status, if applicable), rental agreement, and your landlord’s consent form that allows you to register at their address.

3. Use your BSN to create a DigiD account.

4. Book a KvK appointment to register your business. Bring your passport and proof of residency or an agreement with a postal address service provider. The registration fee is 80,10 euros.

5. Deposit at least 4.500 euros into your business bank account and keep this amount in your account throughout your stay. Since it is not mandatory to open a Dutch bank account, you can use online banks like Revolut, Wise, or N26.

6. Submit the remaining documents, including proof of the deposit, your KvK registration extract, and business plan (if prepared). As of 2024, the IND processes DAFT visa applications faster, typically within 4-6 weeks. Once approved, you will successfully receive a two-year residence permit!

What to expect after receiving your visa

The DAFT visa can be extended for five-year periods, provided you maintain at least 4.500 euros in your business account at all times, as the IND may randomly request an equity statement. You must actively run your business and contribute to the Dutch economy.

Furthermore, during the first five years, you are restricted to working only for your own company and cannot work for another Dutch employer without obtaining a separate work permit. However, your family members can work for other employers without extra permits.

Finally, you must adhere to Dutch tax laws, which differ from U.S. regulations. As a U.S. citizen or green card holder, you must file an annual U.S. tax return based on your Dutch income tax return. Therefore, consulting a tax advisor familiar with both systems is essential.

Your Dutch adventure awaits

With the DAFT visa, you are not just gaining residency — you are opening the door to a fulfilling life in one of Europe’s most exciting countries. Take advantage of the opportunity to live and work in the Netherlands and make the most of its dynamic business environment. Your new adventure starts here!