The Dutch-American Friendship Treaty Explained

What Is the Dutch-American Friendship Treaty?

The treaty lets U.S. citizens apply for the Dutch residence permit for self-employed people on special terms. The IND, the Dutch immigration service, lists its own requirements for applicants who invoke the Dutch-American Friendship Treaty or the Dutch-Japanese Trade Treaty¹. You meet the general requirements that apply to everyone, you have U.S. or Japanese nationality, and one of two situations applies to you¹:

• You trade between the Netherlands and the United States¹.
• You develop and lead the business operations of a Dutch business in which you have invested substantial capital: at least €4,500 for most business forms, €11,250 for an NV, and borrowed money does not count^1,4. Representing a U.S. business in a key position, or practicing an independent profession (not for or on behalf of the government, and not in the healthcare sector), counts as developing and leading a business^1,4.

Why DAFT Stands Out for Americans

For most non-EU nationals, the Dutch self-employed permit is hard to get. The business must serve an essential Dutch interest, assessed by the Netherlands Enterprise Agency (RVO) with a points system: at least 30 points in each of three areas, or 45 for personal experience and 45 for the business plan¹. Treaty applicants are assessed on the treaty conditions instead, with no points test, and the general “sufficient means” test does not apply to them; a spouse or minor child joining a treaty entrepreneur, of any nationality, is not refused on that ground either⁴.

Two practical points help Americans further. U.S. citizens do not need a provisional residence permit (MVV) to enter⁵, and a treaty applicant who arrives without one sends the residence application by post within three months of arriving¹. Form 7524 is for applicants already in the Netherlands; if you want to apply before you travel, ask the Dutch embassy or a consulate in the United States². None of this makes the Netherlands cheap: price levels there were 15.6% above the EU average in 2025⁶, and housing is tight. The route rewards people with a real business, a housing plan, savings and patience for Dutch administration. Our Netherlands page covers the country as a whole.

Who the Route Suits

The route is built around running your own business, so it suits people whose income comes from their own clients:

• Freelancers and consultants with U.S. or international clients.
• Designers, developers, writers, marketers and other independent service providers.
• Online business owners.
• Founders who want a Dutch base for European operations.

It suits retirees only if they genuinely run a business. And it is not a work permit: with this residence permit, you may work as an employee only if the employer holds a work permit (TWV) for you¹.

What Kind of Business Counts?

The business does not need to be large. What the IND tests is a real business that you develop and lead, with substantial capital invested in it; independent professions practiced for or on behalf of the government, or in the healthcare sector, do not count^1,4. Examples of self-employed work that people organize this way:

• Services: consulting, marketing, design and branding, software development, writing and editing, coaching and professional training.
• Ventures: online businesses, e-commerce, creative studios, specialist advisory work and small agencies.

The legal form decides how much capital counts. The Aliens Circular sets these minimums, and borrowed money never counts⁴:

Registration differs by form too. Registering a new business with the Chamber of Commerce (KvK) costs a one-off €85.15 in 2026⁷, and you need a citizen service number (BSN) to register⁸. For a sole proprietorship, KvK passes your details to the tax authority, which issues your VAT numbers; a bv or nv is registered through a civil-law notary⁸.

The Core Requirements in 2026

The Process Since April 2024

The IND changed how it processes treaty applications in April 2024, so older guides may describe a different order. The IND now works like this¹:

1. First-time applicants (no Dutch residence permit yet): the IND page gives six months from the date on the decision letter to register with the Chamber of Commerce and make the investment, and says the IND may revoke the permit if you do not¹. Form 7524 asks for a Chamber of Commerce extract (no older than three months) and a business bank statement showing the investment with the application². Ask the IND which applies before you file.
2. People already in the Netherlands changing their residence purpose: submit as much of the evidence as possible with the application.
3. Extensions: the IND asks for the annual accounts and a balance sheet or income statement, to check that the business has been active and the capital stayed in it.

Around those steps sits the practical work: finding a home, choosing a business structure, bookkeeping from day one, and Dutch health insurance, which is compulsory once you live or work there⁹. After five years with a residence permit you can apply for permanent residence¹.

A practical order for a first-time applicant

1. Confirm DAFT is the right route for your business, income, family, housing and tax position before you spend money.
2. Travel without an MVV, which U.S. citizens do not need⁵.
3. Register with the municipality within five days of arriving if you will live in the Netherlands for more than four months; registration gives you a BSN¹⁰.
4. Register the business and invest the capital: form 7524 asks for proof of both with the application², and the IND page sets six months from the decision as the latest date¹. Use your BSN for the KvK registration⁸, and confirm the timing with the IND.
5. Send the IND application by post within three months of arriving¹. Applying from the United States instead goes through the Dutch embassy or a consulate².
6. Take out Dutch health insurance and set up bookkeeping from the first invoice⁹.

Check each step against the IND page for your own situation, because the IND shows different text depending on nationality and current permit¹.

What DAFT Really Costs

The €4,500 is capital that stays in your business, not the cost of moving¹. A realistic first-year budget separates it from everything else:

Housing: Plan It Early

Housing is not part of the IND’s test, but it shapes everything else. Dutch administration runs through municipal registration: if you will live there for more than four months, you register within five days of arriving and receive your BSN¹⁰, and KvK needs that BSN to register your business⁸. Before you sign, ask whether you can register your address with the municipality at that property, and check the registration rules with the municipality itself. Do not plan only around Amsterdam, and do not rely on tourist accommodation for longer than the first weeks. Rotterdam, The Hague, Utrecht, Leiden, Eindhoven and smaller cities are worth comparing on your own budget.

The Tax Questions to Ask Early

DAFT is an immigration route, not a tax plan. Once you live in the Netherlands and run a business there, you deal with Dutch tax and continuing U.S. obligations:

• U.S. citizens remain taxed on worldwide income and must keep filing¹¹. The foreign tax credit can offset Dutch tax on the same income¹².
• Self-employment tax: U.S. self-employment tax can apply to citizens working abroad unless a totalization agreement assigns coverage elsewhere¹³. The United States and the Netherlands have such an agreement¹⁴.
• Business structure: sole proprietorship or company, and whether an existing U.S. LLC or S corporation complicates things.
• Dutch bookkeeping, VAT and invoicing rules for your activity. For a sole proprietorship, the tax authority issues your VAT numbers after KvK registration⁸, and business records must generally be kept for seven years (ten for real estate)¹⁵.
• Special regimes: the Dutch 30% facility for incoming workers applies only to people in paid employment¹⁶, so a treaty entrepreneur running their own business should not plan around it.

Our sister site eTaxNexus explains self-employment tax abroad for Americans.

Can Your Family Come With You?

Yes, family members can apply to join you, and the treaty route has one clear advantage for them: family members may work in the Netherlands without a work permit; their residence permit says “free to work, no work permit required”¹. The treaty entrepreneur, by contrast, needs an employer-held work permit for any paid employment¹.

For couples, a useful question is which partner should be the DAFT applicant: usually the one whose business activity and records are clearest, not the one most excited about Amsterdam.

Questions for couples

• Whose business is strongest, and whose income is easiest to document?
• Who can actually run the business from the Netherlands?
• Will the other partner work, study or support the move? Family members may work without a work permit¹.

Questions for families

• Which city has school places? Compulsory education starts on the first day of the month after a child turns five, children may start primary school at four, and schools can have waiting lists, so you may apply to several¹⁷.
• Can the housing budget support a family home at a registrable address¹⁰?
• How will health insurance be arranged for each person⁹?
• What happens if business income falls in the first year?

Common DAFT Mistakes Americans Make

1. Thinking €4,500 is the cost of moving

It is capital inside the business¹. Housing, insurance, advice and living costs come on top.

2. Assuming one fixed order of steps

Older guides give a different order. Form 7524 asks for the KvK extract and proof of the investment with the application², and the IND page sets six months from the decision as the outer limit¹. Confirm with the IND which applies to you.

3. Treating a hobby as a business

Extensions check that the business was active and the capital remained¹. Invoices, clients and accounts make the case.

4. Ignoring Dutch tax and bookkeeping

Freelance freedom does not mean informal records. Keep books from the first invoice; records must generally be kept for seven years¹⁵.

5. Assuming Amsterdam is the only answer

Rotterdam, The Hague, Utrecht, Haarlem, Leiden, Delft, Eindhoven, Groningen and smaller cities may give a better life for your budget. Visit before you commit.

6. Confusing remote employment with self-employment

If you are an employee of one company, DAFT is probably not your route; employment as an employee needs an employer-held work permit¹.

7. Using DAFT as a retirement visa

Retirees who do not want to run a business should look at passive-income routes in other countries instead, such as those on our Portugal, Spain and Italy pages. Our Netherlands Relocation Guide is for people who do plan to run a Dutch business.