Dutch American Friendship Treaty

The Dutch American Friendship Treaty (DAFT) provides a unique opportunity for US entrepreneurs and businesses seeking to establish themselves in the Netherlands. Thanks to this bilateral agreement, US citizens can benefit from simplified immigration rules when  starting a business in the Netherlands. Making it one of the most accessible pathways for entering the European market. 

What is the DAFT? 

The DAFT allows American citizens to apply for a Dutch residence permit as self-employed individuals under favorable conditions. This treaty reduces the usual administrative hurdles and creates a straightforward route to setting up a business.  

Key requirement under the DAFT 

To qualify for the DAFT, applicants must: 

• Be a US citizen; 
• Intend to actively run a business or operate as a self-employed professional in the Netherlands; 
• Make a minimum capital investment of €4,500 in a Dutch business bank account; 
• Register the business with the Dutch Chamber of Commerce; 
• Provide evidence that the business delivers economic benefit to the Netherlands. 

With these conditions met, a residence permit is granted for an initial period of up to two years. With the option to renew. 

From DAFT to full business setup 

The Dutch American Friendship Treaty (DAFT) helps US entrepreneurs to set up a company and obtain residency in the Netherlands. However, successfully operating a business involves more than just setting up the company and securing a residence permit. Legal structuring, tax registration, employment obligations, and ongoing compliance requirements are all essential parts of building a sustainable business.

To help you get started, we have outlined five essential steps for setting up a company in the Netherlands. Submit your contact details via the form below to receive the full guide directly by email.

Full guidance on your Dutch set up

Establishing a company under the DAFT involves more than just applying for a residence permit. Our team guides businesses through every step of the process, including:

The 30% Ruling and the Dutch American Friendship Treaty

The 30% ruling is a Dutch tax facility that allows eligible employees to receive up to 30 percent of their gross salary tax-free for a period of up to five years. It was introduced to help cover the additional costs of living and working in the Netherlands, and is primarily aimed at attracting international professionals. Although the scheme is widely used by employees, it is often overlooked in the context of entrepreneurship.

US nationals who relocate to the Netherlands under the Dutch American Friendship Treaty (DAFT) may also fall within the scope of the 30 percent ruling. In practice, many DAFT entrepreneurs establish a Dutch company and appoint themselves as employees. This can make the application process more complex compared to regular employment situations. It is possible to assess whether both can be applied in combination. Contact us for more information.

Schedule an introductory call 

Interested in learning how the DAFT can support your business plans? We offer a free consultation to assess your situation and explain the steps required to establish your presence in the Netherlands. An appointment can easily be requested via the contact form below.