DAFT Dutch American Friendship Treaty

Are you American, U.S. citizen, wanting to work in Europe, specifically the Netherlands? For those who are free-lancers, self-employed, have their own business, or want to become independent and work that way the Dutch American Friendship Treaty from 1956 still allows Americans to move to the Netherlands and work in any self-employed capacity.

This old preferential immigration scheme is still being used today and is a relative easy way to migrate. Relative as there it is a bit of a bureaucratic process chicken and egg process. We are happy to help those who want guidance or full support and to date all our clients have been approved, thus 100% success to date. Recently (as of 01 April 2024) immigration has simplified the process for those whose applications looking in good order, this means that instead of the usual approx six months we now see residence permits issued after about 15 to 20 days. Immigration itself got understandably tired from the bureaucratic chicken and egg procedure 😊😆. However, for now this is just a temporary trial until 01 April 2026. In addition, those applications that don’t look good may still be handled the old way, and can be denied.

Requirements
The main basic requirements to follow this immigration route are:

  • Self employment/business in NL (different forms accepted)
  • Keeping an ongoing (business) bank balance of €4,500 (we suggest more so that any expenditure doesn’t drop the account to below this required threshold at any time).
  • Be of good standing/character (FBI check, also called police clearance)

And of course some more requirements, terms and conditions, but these are the main ones to consider. If you want to start working for yourself in the Netherlands and have questions or want help to ensure this is all done right then don’t hesitate to get in touch with us.

Taxes
Keep in mind that the US taxes its citizens on their worldwide income. Luckily that the US and NL have a tax treaty to avoid double taxation. And not only that, the Netherlands also has a (up to) 30% tax deduction you can apply for before arriving in the Netherlands (must be before arrival). Marinka, our tax and start up specialist can advise you more on this.

Family to join/follow?
Spouses and children who are minors are allowed to join the entrepreneur. The spouse will be given the right to work as well and is not restricted to being self employed etc. The spouse could work for any company in the Netherlands (or abroad) and does not require a separate work permit. Of course, they too could use the DAFT route. Adult children can’t accompany and would need to consider their own route. Young adults who are (financially) still dependent on the parents could be considered as well, but that can be more challenging and we don’t recommend it unless it is the only way. However, family wants to join we recommend that they formally move and travel on the same date (this can be of benefit later).

Who will support you?
It is likely that Marinka will support you in this case. She is a tax and start up specialist and has in depth knowledge of DAFT, starting a business, and related immigration matters. Sometimes Marinka is assisted by Kris (for example in case of dependents or if complexities like a criminal record). Sometimes other colleagues may assist you as well.

In which country are you formally registered as resident? If you are not sure, in which country do you pay tax and/or in which country do you spend most days out of the year?
If you know it use country code. For example, UK is +44, Netherlands is +31, USA is +1, South Africa is +27, China is +86, etc.
If you are looking for tax advice or assistance please explain your situation, challenges and your desired outcome. Also let us know how and ‘when’ we can best contact you.