Why the DAFT Permit Is One of the Smartest Moves for U.S. Entrepreneurs in Europe
The Dutch American Friendship Treaty (DAFT) provides a framework for US citizens to establish a business and reside in the Netherlands as self-employed entrepreneurs. The treaty, which dates back to 1956, establishes favourable conditions for US entrepreneurs to qualify for residence and work permits.
Compared with other European entrepreneur visas, the DAFT permit has the following characteristics:
- Predictable
- Not points-based
- Not revenue-dependent upon entry
Applicants under the DAFT permit must either hold a key position within a US company in the Netherlands or practice a liberal profession (‘vrij beroep’), meaning independent professional activities, except where these involve a public function or a role in healthcare or public safety.
Eligible applicants typically include:
- Freelancers and consultants
- Start-up founders
- Digital entrepreneurs
- Coaches, creatives, and technology professionals
- US business owners expanding into Europe
Eligibility requirements:
- US citizenship
- Registration of the business in the Netherlands
- One of the following applies:
- Conduct business between the Netherlands and the US; or
- Develop and manage a business in the Netherlands, including:
- Investment of substantial capital in the business (typically EUR 4,500 for most business structures). Applicants should review the rules regarding substantial capital investment.
Choosing the appropriate business structure from the outset is critical, as it determines both tax obligations and your potential for future growth. A key decision is whether to operate as a sole proprietor (ZZP) or to establish a private limited company (B.V.), as each structure carries distinct legal, fiscal, and strategic implications.
To support entrepreneurs throughout this process, we offer a one-stop shop with interdisciplinary expertise, providing end-to-end cross border support across global mobility, tax, immigration, payroll, and related advisory services. All services are coordinated under one roof, ensuring integrated expertise across disciplines and delivering practical, actionable advice at every stage of the journey.
If you have any questions or would like further information, please contact LIMES at +31(0)88 0899000 or via permits@limes-int.com.