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Dutch business glossary · DAFT

What is DAFT (the Dutch-American Friendship Treaty)?

DAFT is the 1956 treaty that lets US citizens live in the Netherlands as entrepreneurs. The main condition is an investment of €4,500 on the balance sheet of their own Dutch business; the permit is renewable while the business is active.

Updated 16 September 2026 · Figures: 2026

How it works

The Dutch-American Friendship Treaty gives citizens of the United States a residence permit as a self-employed person in the Netherlands, on conditions that are far lighter than the points system other nationalities face. The applicant needs an own business in the Netherlands, an investment of at least €4,500 in it, and enough income to live on.

The business can be a sole proprietorship or a BV. With a BV, the €4,500 is paid into the company as share capital or share premium and must stay on the balance sheet. The applicant must own at least 25% of the company and work for it as an entrepreneur.

The first permit is valid for two years and is renewed for five years when the business is still active and the capital is still there. After five years of legal residence the holder can apply for permanent residence or Dutch citizenship under the general rules.

Family members can join under the family rules. The permit allows working for the own business; employment for another employer needs a separate work permit or the partner route.

Example

A designer from Chicago sets up a BV with €4,500 share capital, rents a desk in Amsterdam and applies for the DAFT permit at the immigration service (IND). She shows the deed, the KVK extract, the bank statement with the capital and a business plan. The permit is granted for two years.

The figures

€4,500 on the balance sheetMinimum investment
2 yearsFirst permit
5 yearsRenewal

Questions people ask

Can a US citizen use DAFT with a BV they own from abroad?

The permit requires living in the Netherlands and running the business from there. The BV can be set up first from abroad; the permit application follows once the founder moves.

Does DAFT give access to the 30% ruling?

The 30% ruling is for employees recruited from abroad. A DAFT entrepreneur who employs themselves through their own BV can qualify when the salary and the other conditions are met; that combination needs planning before the move.

Holdwise, Hoofddorp. Definition and explanation maintained with the Dutch and German glossaries; figures from the central rates source, year 2026. Updated 16 September 2026.

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Knowledge on doing business in the Netherlands · based on the 2026 figures