Dutch American friendship treaty

INTRODUCING THE DAFT PROGRAM 

More and more U.S. citizens are looking to move abroad, with The Netherlands topping their destination wishlist. They are attracted by the relaxed Dutch lifestyle, the healthy work-life balance, the easy and affordable access to healthcare, its tolerance towards the LGBTQI+ community and other marginalized groups, the rich Dutch culture, its safety and stability - particularly notable given the current U.S. polarized political climate - and many more reasons. 

But how can you - a U.S. citizen - acquire the immigration permit to actually move to The Netherlands? 

Like most countries, to stay in The Netherlands beyond 90 days you need permission from the government in the form of a residence permit. The Dutch government usually only issues residence permits when:

• a company hires and sponsors you as a ‘Highly Skilled Migrant Worker’,

• your long-term partner is a citizen or holds a Dutch residence permit, or

• you are a political asylum seeker leaving a dire situation in your home country.

For most U.S. citizens none of these conditions apply - even with the current U.S. political climate. 

Fortunately for Americans looking to move to The Netherlands, there is another option: the Dutch American Friendship Treaty, or DAFT. 

The DAFT program offers U.S. citizens and their families a unique opportunity to live and work in The Netherlands. It provides a relatively easy path to immigration for American entrepreneurs, consultants, freelancers, digital nomads, and remote workers by requiring just the registration of a business with the Dutch Chamber of Commerce ( the ‘Kamer van Koophandel’, or ‘KVK’), a deposit of €4,500 into a Dutch business bank account, and a few other simple administrative steps.  

The program is also very flexible: there is no need to prove that your business will have an innovative value for The Netherlands, no strict income requirements, no Dutch language obligation, no advanced educational qualifications, and there’s no age limit.  

Families are included with DAFT

This flexibility extends to your family as well. Your spouse or partner - including unmarried and same-sex partners - and children under 18 are included under the DAFT program. Moreover, your spouse/partner will have access to the Dutch labor market, meaning they can work in a salaried job and receive the benefits of traditional employment. 

The Dutch American Friendship Treaty program is open to businesses of all sizes, from solo freelancers to enterprising entrepreneurs and large business owners - with very few restrictions on the type of business or the origin of your customers. The primary decision you’ll need to make is the legal structure of your company: either a ‘ZZP’ (the Dutch equivalent of a sole proprietorship) or a ‘BV’ (similar to an American LLC). Choosing a BV also makes you eligible for the highly beneficial 30% ruling tax exemption, which allows 30% of your business salary to be paid to you tax-free for up to 5 years.  

Beyond the first two years: extending your DAFT

Your initial DAFT residence permit is issued for 2 years. After this period, it can be extended for 5 years, then every 5 years thereafter, as long as you maintain at least €4,500 in business equity (BV) or in your business bank account (ZZP).  

Additionally, your business does not necessarily need to be profitable to qualify for the extension. Alternatively, after 5 continuous years of residency in The Netherlands, you may apply for permanent residency (keep in mind that this type of residence permit requires completing a series of uncomplicated language and culture exams that all permanent residents must pass). 

Have more questions? Need more help? Schedule a one-hour consultation with Attorney Stephan Roelofs today.