The Dutch American Friendship Treaty (DAFT) allows US citizens to live and work in the Netherlands as a self-employed entrepreneur. The IND sets financial and administrative requirements, including a minimum investment of €4,500 in your business. TaxMate handles the bookkeeping and figures behind your DAFT application and extension, so you can confidently build your business while we substantiate the financial conditions watertight.
The DAFT is a 1956 friendship treaty between the Netherlands and the United States. On that basis, US citizens can apply for a residence permit as a self-employed person without meeting the regular points system. Instead, lighter conditions apply, centred on an investment of at least €4,500 in your own Dutch business.
You hold US nationality, register your business with the Chamber of Commerce (KVK) and invest at least €4,500 of your own capital in your company. That capital must be held in a business account and remain in the business throughout your stay. The IND checks this at your application and again at every extension.
We set up your administration, prepare an opening balance sheet and equity statement that substantiate the €4,500 requirement, and then handle your ongoing bookkeeping, VAT and income tax returns. For your extension we deliver an annual report and balance sheet with which you prove to the IND that your business is active and the capital has been retained.
The Dutch American Friendship Treaty offers US entrepreneurs an accessible route to a Dutch residence permit for the self-employed. Where other self-employed applicants must demonstrate their added value to the Dutch economy via a points system, DAFT only requires a genuine business and an investment of at least €4,500. The residence permit is issued for a maximum of two years and can be extended afterwards. TaxMate focuses on the financial and bookkeeping side of this process: we make sure your figures, balance sheet and administration align precisely with what the IND expects, so you can focus on your business.
The core of the DAFT application is the investment of at least €4,500 in your own business. This amount must be held as equity in a Dutch business account and demonstrably contributed to the company. TaxMate prepares an opening balance sheet and an equity statement that clearly show the requirement has been met. We ensure the substantiation is unambiguous and matches your bank statements and administration, so the IND can assess your application without additional questions.
For a DAFT permit you register your business with the Chamber of Commerce (KVK), usually as a sole proprietorship or private limited company. Since April 2024, anyone who does not yet hold a Dutch residence permit must register with the KVK and make the required investment within six months of the permit being issued. TaxMate advises on the most suitable legal form for your situation and immediately sets up a correct administration, so from day one you meet both the tax and the DAFT obligations.
The DAFT permit is valid for a maximum of two years. At extension, the IND uses your annual figures to check whether your business has actually been active and whether the invested capital has remained in the company. A well-substantiated annual report with balance sheet and profit-and-loss account is decisive here. TaxMate keeps your administration in order all year round and delivers a complete annual report on time, so your extension runs smoothly and you are not caught by surprise.
Once your business is running, you deal with VAT returns, the income tax return and keeping your administration in the Netherlands. For US entrepreneurs this is an unfamiliar system, with its own rules, deadlines and deductions. TaxMate handles your full bookkeeping in English and Dutch, files your returns on time and keeps your current financial position clear via MyTaxMate. That way you stay effortlessly compliant with the Tax Authority while building your business.
A successful DAFT application and extension stands or falls with sound financial substantiation. TaxMate is a recognised, modern accounting firm with experience guiding international entrepreneurs in the Netherlands. We combine a correct opening balance sheet, equity statement, ongoing bookkeeping and annual report into one coherent whole, with English-language guidance and a dedicated contact. That way you can be sure the figures behind your residence permit are always in order.
From the €4,500 substantiation to your ongoing bookkeeping and the annual report for your extension: TaxMate handles the complete financial side of your DAFT process, with English-language guidance and a dedicated contact.
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