DAFT: how the Dutch-American Friendship Treaty lets Americans work for themselves in Amsterdam

A 1956 treaty still gives Americans one of Europe's easiest self-employment routes: open a Dutch business, put a modest sum in its bank account and apply to the IND.

The short version

• DAFT is for US citizens only. It runs through the IND's regular residence permit self-employed person, which explicitly includes the Dutch-American Friendship Treaty [1].
• No points test. Unlike other non-EU entrepreneurs, Americans under DAFT don't have to prove their business serves a Dutch "essential interest." The core requirement is a capital investment, a minimum of EUR 4,500 (about USD 5,000) for most business forms, kept in a Dutch business bank account [3].
• The 2026 IND fee is EUR 423 (about USD 470) for a first application and the same for an extension [1].
• Family can come. A partner pays EUR 254 (about USD 285) and a child under 18 pays EUR 85 (about USD 95) under the IND's family category [1].
• Uncle Sam still taxes you, including self-employment tax unless the US–Netherlands totalization agreement says otherwise [2].

USD conversions in this guide use the Federal Reserve H.10 rate of October 30, 2026 (USD 1.1163 per euro).

What DAFT is, and why Americans love it

The friendship and commerce treaty between the United States and the Netherlands was signed in 1956. Among other things, it promises each country's citizens the right to set up a business in the other. The Dutch apply that promise through a lighter version of their self-employed residence permit.

For most non-EU founders, the IND asks the Netherlands Enterprise Agency to score the business plan on experience, market value and innovation. Americans under DAFT skip that test. As long as your business is real and you've invested the required capital, the IND doesn't ask whether the Dutch economy "needs" another web designer, translator, photographer or consultant. It's the closest thing Europe has to "open an LLC and move."

The IND's English page on the self-employed permit, last updated October 13, 2026, works as a questionnaire that shows the rules only after you choose your nationality [3]. It confirms the EUR 4,500 minimum for most business forms and a first permit of up to two years; for anything else below, confirm the current rules on ind.nl before you apply.

What you need

1. A business registered with the KVK (the Netherlands Chamber of Commerce). A sole proprietorship (eenmanszaak) is the usual choice for freelancers. A Dutch BV (private limited company) also works.
2. The investment, in the business account. The IND requires at least EUR 4,500 (about USD 5,000) for most business forms; the exact amount depends on the form [3]. It has to sit in a Dutch business bank account in the business's name, and it's meant to be used for the business. The IND checks that it's there when you apply and may ask again at renewal.
3. A business plan. It doesn't need to win any prizes, but it should show what you'll do, who your clients are and how you'll earn money. Keep it realistic and specific.
4. Your passport, a Dutch address and a registration with the municipality, which gives you your BSN. Our BSN and registration guide walks through it.
5. Proof the activity is genuinely self-employed. The Netherlands Labour Authority checks that self-employed people truly work under their own responsibility, not as disguised employees [4]. A single "client" who sets your hours and gives you a laptop looks like an employer.

Americans don't need a provisional residence visa (MVV) for this route, so you can usually enter visa-free and apply from inside the Netherlands. Check that you apply well within your 90-day visa-free stay.

Fees in 2026

All figures come from the IND's fee table [1]. Add the KVK registration fee, a business bank account, sworn translations if any documents need them, and an apostille on your birth and marriage certificates for municipal registration [5].

How long the permit lasts and how renewal works

The IND says the self-employed permit is valid for a maximum of two years [3]. Renewals under DAFT have typically run longer, but we couldn't confirm the current renewal period on the IND's site, so check your decision letter: the end date on your residence card is what counts.

For renewal, apply before your card expires and pay the extension fee [1]. Expect the IND to look at:

• Whether the business is still active, with KVK registration, invoices and Dutch tax filings.
• The investment. Keep the capital in the business account, or be ready to show it was spent on the business.
• Your residence. You need to actually live in the Netherlands and stay registered with the municipality.

Keep clean books from day one. A Dutch bookkeeper is cheap compared with the stress of rebuilding a year's records the month before your renewal.

After five years of lawful residence, you can look at permanent residence or Dutch naturalization, though both usually involve the civic integration exam. See our guide to learning Dutch and the civic integration exam.

Bringing your family

Your spouse, registered partner or unmarried partner and your children can apply to join you under the IND's family category, at the fees above [1]. Family members of DAFT entrepreneurs have long been allowed to work in the Netherlands without a separate work permit; check the endorsement on their residence cards. That's a big deal for two-career couples, and a key difference from some other European self-employment routes.

The US side: taxes and Social Security

Moving your business to Amsterdam doesn't end your US obligations:

• Income tax. You still file Form 1040 every year. Self-employed income counts as foreign earned income, so the FEIE on Form 2555 can apply, up to USD 132,900 for tax year 2026 [6]. Many self-employed Americans in the Netherlands use the foreign tax credit instead, because Dutch income tax is higher.
• Self-employment tax. The FEIE doesn't remove US self-employment tax. The United States and the Netherlands have a totalization agreement [2], which generally assigns a self-employed person to one country's social security system to avoid double contributions. If you're covered by the Dutch system, you can request a certificate of coverage and attach it to your US return.
• FBAR and Form 8938. Your Dutch business and personal accounts count toward the FBAR once the total tops USD 10,000 at any time during the year [7].
• Entity choice. A Dutch BV can be a "foreign corporation" for US purposes, with its own reporting forms. Talk to a US expat tax preparer before you pick a structure.

Weighing DAFT against a job offer with the 30% ruling? Ask Americans who've done both in our community group for Americans in the Netherlands.

Sources

1. Fees: costs of an application, IND
2. Status of totalization agreements, Social Security Administration
3. Residence permit self-employed person, IND
4. Permits for foreign self-employed professionals or freelancers, Business.gov.nl (RVO)
5. Legalising documents from the United States, Netherlands Worldwide
6. Figuring the foreign earned income exclusion, IRS
7. Comparison of Form 8938 and FBAR requirements, IRS

Keep reading

• Moving to Amsterdam as an American
• BSN and registering in Amsterdam
• Netherlands taxes for Americans
• Self-employed abroad: US self-employment tax