What is the DAFT residence permit?
The Dutch-American Friendship Treaty (DAFT) is a 1956 treaty between the Netherlands and the United States that gives US citizens a simplified path to a Dutch residence permit as a self-employed person. Instead of the points-based assessment other non-EU founders go through, a DAFT applicant mainly needs to meet the Netherlands’ general residence conditions, register a business with the Dutch Chamber of Commerce (KVK), and invest a minimum amount of their own capital in that business.
The legal basis is Article II(1) of the Treaty of Friendship, Commerce and Navigation, signed on March 27, 1956 and in force since December 5, 1957. It lets nationals of each country enter and stay in the other to carry on trade, or to develop and direct a business in which they’ve invested a substantial amount of capital. You can read the official text on wetten.overheid.nl; the articles there are shown in Dutch, although the treaty says the Dutch and English versions are equally authentic.
The Netherlands has a near-identical treaty with Japan (sometimes called DJFT), using the same framework: general permit conditions, treaty nationality, and one of three categories (key position, free profession, or substantial capital investment). We cover that route on our sister site, the DJFT guide, in English and Japanese.
This guide is the starting point for the whole cluster. Each section below links to a dedicated page with the full detail:
- Requirements: the exact conditions, including the €4,500 capital rule
- How to apply: the application process, step by step
- ZZP vs. BV: which business structure to register
- Opening balance sheet & the €4,500 capital: what you actually need to show, and why most people get this wrong
- Extension and renewal: what happens after your first 2 years
- Partner and family: bringing a spouse, partner or children
- Costs and timeline: fees and how long the process really takes
- DAFT vs. Highly Skilled Migrant: if you’re also weighing an employer-sponsored route
- US taxes and DAFT: what doesn’t go away when you move
Read them in whatever order fits your situation, or follow the core idea below top to bottom if you’re starting from scratch.
The core idea, in plain terms
- You hold US citizenship (the treaty requirement).
- You register a business with the KVK, usually a sole proprietorship (ZZP) or a private limited company (BV). See ZZP vs. BV.
- You invest at least €4,500 of your own capital in that business. Verified directly on ind.nl; see Requirements for the exact wording and for what is still unverified about how long that amount must stay invested.
- You apply for the residence permit, which the IND must decide on within a statutory 90 days (verified). See Costs and timeline for what “90 days” means in practice, versus the shorter periods some immigration firms advertise.
- After roughly two years, you renew. This requires annual accounts and a balance sheet or income statement, confirmed directly by ind.nl. See Extension and renewal.
None of this requires a sponsoring employer or a job offer. It’s a path you control yourself, start to finish.
Who this guide is for
This cluster is written for a US citizen weighing remote work, freelancing or starting a company in the Netherlands, who wants to know whether DAFT actually fits their situation before committing to it. By the end, you should be able to tell roughly what it costs, what the real requirements are, and what to prepare before talking to a bookkeeper or immigration lawyer about your specific case.
What this guide is not
This cluster explains the DAFT process in plain language, with every factual claim traced back to a source. It is general information, not legal or tax advice. See the note at the bottom of this page. For your specific situation, especially anything involving existing debts, a BV with other shareholders, or a prior Dutch residence history, talk to an immigration lawyer or our bookkeeping partner.