The DAFT visa explained: how US entrepreneurs settle in the Netherlands

Looking to settle in the Netherlands as a US citizen and entrepreneur? The DAFT visa is often the fastest route. Where regular business visas tend to get stuck on points systems or steep investment thresholds, the procedure under the DAFT treaty is relatively straightforward — as long as your application is well substantiated.

What is the DAFT treaty?

The Dutch-American Friendship Treaty is a 1956 trade agreement between the Netherlands and the United States. One of its practical effects: US citizens can settle in the Netherlands as self-employed entrepreneurs under relaxed conditions, without the usual IND points system.

What does the IND ask of you?

In short: you're a US citizen, you have a Dutch business, and you demonstrate a capital investment in it of, as a rule, at least €4,500. Unlike the standard self-employed permit, no business plan is assessed here against a points system: the treaty route asks for demonstrated investment or professional activity, not for an economic benefit you have to prove with a plan. That is what makes DAFT the simplest of the three routes in practice. What does carry weight is that the investment is demonstrably in the business and that the figures are right.

Why financial reporting matters so much

What it comes down to in practice is the substantiation: the capital investment needs to be demonstrably in the business account, and the bookkeeping needs to be right from day one. That stays important after approval too — at renewal the IND checks again whether your business is active and whether the capital has been maintained.

And what about taxes?

Once your company is registered, the usual Dutch obligations apply: VAT filing, income tax, and — depending on your legal structure — possibly corporate tax. Many US entrepreneurs underestimate this part, while bookkeeping that's correct from the start actually helps a smooth visa renewal.

Guidance is available for both the financial substantiation of a DAFT application and the bookkeeping that follows. Feel free to get in touch to talk through your situation.