DAFT glossary
The DAFT process comes with its own vocabulary, mostly in Dutch. Short, plain definitions here. The full detail, with sourcing, lives on each linked guide.
- DAFT
The Dutch-American Friendship Treaty: 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.
Read the full guide →- DJFT
The Dutch-Japanese trade treaty equivalent of DAFT, for Japanese nationals. Uses the same general framework. Not covered on this site.
- IND
Immigratie- en Naturalisatiedienst: the Dutch Immigration and Naturalisation Service. The government body that decides residence permit applications, including DAFT.
See the application process →- KVK
Kamer van Koophandel: the Dutch Chamber of Commerce. You must register your business here as part of the DAFT process.
See the registration requirement →- ZZP
Zelfstandige zonder personeel: a sole proprietorship (literally "self-employed without staff"). One of the two business structures DAFT applicants typically register.
Compare ZZP and BV →- BV
Besloten vennootschap: a Dutch private limited company, roughly equivalent to a US LLC or UK Ltd. The other business structure DAFT applicants typically consider.
Compare ZZP and BV →- Opening balance sheet
A financial statement showing what a business owns and owes on day one, including the €4,500 DAFT capital requirement. The baseline every later balance sheet is compared against.
Read the full guide →- BECON number
A registration number the Dutch tax authority issues to professional bookkeepers and tax intermediaries. Several DAFT guides recommend using a BECON-registered bookkeeper for your opening balance sheet and annual accounts.
Our BECON-registered bookkeeping partner →- 30%-ruling (30%-regeling)
A Dutch tax facility letting qualifying employees receive part of their salary tax-free. Its minimum salary threshold is set by the government and changes annually. See our ZZP vs. BV guide for why the figures other DAFT sites quote for this shouldn't be trusted as current.
Read the sourcing caveat →- MVV
Machtiging tot voorlopig verblijf: a provisional residence visa some non-EU nationals need before traveling to the Netherlands to collect a residence permit. We haven't yet confirmed on ind.nl whether US citizens applying under DAFT need one, so check with the IND before you travel.
- Residence permit (verblijfsvergunning)
The document that allows a non-EU national to legally live in the Netherlands. DAFT grants a residence permit as a self-employed person, not a separate visa category of its own.
- Substantial capital investment
The IND's term for the own-capital requirement behind DAFT: €4,500 for most business forms. See our requirements guide for what's confirmed and what isn't about how long it must stay invested.
Read the full requirement →
This page provides general information only. It is not legal or tax advice. Rules change and individual circumstances vary. Always verify details with the IND or a qualified adviser before acting.