Dutch American Friendship Treaty: Everything You Need to Know
What is the Dutch American Friendship Treaty (DAFT)?
The Dutch American Friendship Treaty, often abbreviated as DAFT, is a unique bilateral agreement between the United States and the Netherlands, signed in 1956. It offers U.S. citizens an expedited route to start a business and legally reside in the Netherlands.
Unlike standard immigration programs, DAFT provides:
- Lower capital requirements
- Simplified residency permit applications
- A business-first pathway to Dutch life
This treaty is part of a broader economic and diplomatic relationship between the two nations and is designed to foster entrepreneurship and economic collaboration.
Who is Eligible for DAFT?
To qualify under the Dutch-American Friendship Treaty:
- You must hold U.S. citizenship
- You must start or invest in a business in the Netherlands
- You must register your business with the Dutch Chamber of Commerce (KVK)
- You must deposit a minimum investment capital of €4,500 in a Dutch bank account
Note: DAFT does not require language tests, corporate partners, or large-scale business ventures. Freelancers, consultants, and digital entrepreneurs are welcome, too.
How to Apply Under DAFT
Applying under the Dutch-American Friendship Treaty involves a series of well-defined steps:
1. Travel to the Netherlands
Start the process by arriving in the Netherlands. U.S. citizens can stay for 90 days visa-free while preparing their DAFT application.
2. Register a Business
You must register your business at the Kamer van Koophandel (KVK). Choose a legal structure (often a sole proprietorship or BV) based on your goals.
3. Open a Dutch Bank Account
You will be required to deposit at least €4,500 as an investment into a Dutch bank account under your business’s name.
4. Apply for a Residence Permit
With your business registered and bank deposit made, you can submit your DAFT application to the Immigration and Naturalisation Service (IND).
5. Await Decision
You may be granted a temporary residency sticker (verblijfsaantekening) in your passport while the application is under review, which usually takes 90 days.
Legal Documents Needed for DAFT Application
Here’s a checklist of the required documents:
- A valid U.S. passport
- KVK registration certificate
- Business plan (optional but helpful)
- Dutch bank statement showing the €4,500 deposit
- Dutch residential address proof (e.g., rental contract)
- Health insurance valid in the Netherlands
- Completed MVV/Residence Permit form (Form 7523)
Some DAFT applications may also require a municipal registration (BRP) and a BSN (social security number).
Setting Up a Business in the Netherlands under DAFT
Most DAFT applicants choose one of the following business types:
- Eenmanszaak (Sole Proprietorship) – Ideal for freelancers and consultants
- Besloten Vennootschap (BV) – Offers limited liability and is more suitable for scalable businesses
💡 Pro tip: Consider working with a Dutch bookkeeper or accountant early on. The Dutch tax system can be complex, and mistakes might delay your permit.
Your business must also meet the Dutch “means of livelihood” requirement, meaning it should eventually support your cost of living.
Legal Representation for DAFT Applications
While you can apply for DAFT yourself, many applicants work with immigration lawyers to streamline the process. A legal expert ensures:
- Accurate documentation
- Up-to-date interpretation of IND policies
- Better success rate in approval
- Legal support in case of permit denials or renewals
Having legal representation is especially useful if:
- You’re unfamiliar with Dutch laws
- You plan to bring dependents
- You aim to apply for permanent residency or naturalization in the future
Can Family Members Come With You?
Yes! DAFT allows family reunification. Spouses and children can apply for a residence permit to join you in the Netherlands. They don’t need to meet the €4,500 capital requirement or register as business owners.
DAFT Renewal and Permanent Residency
DAFT permits are typically issued for two years. You can renew them as long as:
- Your business is active
- You still meet the financial requirements
After 5 consecutive years on a DAFT permit, you can apply for:
- Permanent residency in the Netherlands
Dutch citizenship (if you meet additional criteria)
Is DAFT Right for You?
If you’re a U.S. citizen with entrepreneurial ambition and a desire to live in one of Europe’s most welcoming and advanced societies, the Dutch American Friendship Treaty may be your gateway.
Whether you’re planning to open a physical business, work online, or simply wish to explore life in the Netherlands, DAFT simplifies the path, but it requires the right preparation.
