Residence Permit for U.S. Entrepreneurs in the Netherlands under the Dutch-American Friendship Treaty (DAFT)

If you are a U.S. citizen and would like to start or operate a business in the Netherlands, you may benefit from favourable immigration rules under the Dutch-American Friendship Treaty (DAFT).

The Dutch-American Friendship Treaty allows qualifying U.S. citizens to obtain a Dutch residence permit for self-employment under more favourable conditions than those generally applicable to non-EU entrepreneurs. The treaty is intended to promote economic relations, trade and business between the United States and the Netherlands.

Conditions for residence under the Dutch-American Friendship Treaty

U.S. citizens may qualify for a residence permit under the treaty if they meet the general immigration requirements and either:

• engage in trade between the Netherlands and the United States; or
• develop and lead the business operations of a business in the Netherlands.

For the latter category, the treaty may apply if you represent a U.S. business in a key position, practise an independent profession, or invest substantial capital in your own business in the Netherlands. Certain activities for or on behalf of the government or in the healthcare sector are excluded.

Substantial capital requirement

For most entrepreneurs, one of the most important requirements is the investment of substantial capital in the Dutch business.

The current minimum investment requirements include:

• Sole proprietorship: at least €4,500;
• General partnership (VOF): at least €4,500;
• Limited partnership (CV): at least €4,500;
• Private limited company (BV): at least €4,500;
• Public limited company (NV): at least €11,250.

Borrowed capital does not count towards the required substantial capital, and the required investment must be maintained during the period of residence.

For first-time treaty applications where the applicant does not yet hold a Dutch residence permit, the IND currently allows the applicant to register the business with the Dutch Chamber of Commerce and make the required investment within six months after the residence permit has been granted.

Duration of the residence permit

The initial residence permit is valid for a maximum of two years. It can be extended if you continue to meet the applicable requirements. When applying for an extension, the IND will check whether the business has remained active and whether the required capital has remained invested in the business.

After five years of lawful residence, you may be eligible to apply for permanent residence, provided that you meet the applicable requirements.

Family members

Your spouse or partner and minor children may also apply for residence in the Netherlands as your family members. An important advantage is that the partner of a self-employed residence permit holder is free to work in the Netherlands, either as an employee or as a self-employed person, without requiring a separate work permit (TWV).

During residence under DAFT, you and qualifying family members are generally not subject to the regular civic integration obligation. However, Dutch language and civic integration requirements may become relevant if you later apply for permanent residence or Dutch citizenship.

Legal assistance with a DAFT application

Although the Dutch-American Friendship Treaty provides U.S. entrepreneurs with a favourable route to residence in the Netherlands, preparing the application and ensuring that all legal and financial requirements are met can still be challenging.

If you are considering starting or operating a business in the Netherlands under the Dutch-American Friendship Treaty, please do not hesitate to contact us for legal advice. We are happy to assist you with your application.