Netherlands · Business & founder

Dutch-American Friendship Treaty residence permit

Open Last verified July 2026

Open. Between 2024 and 2026 the IND has run an expedited procedure under which the application can be submitted and approved without supplying documents up front, subject to random checks.

For a US citizen, DAFT is the cheapest self-sponsored residence permit in Western Europe by an order of magnitude — EUR 4,500 of your own capital against EUR 500,000 for a Portuguese fund subscription. The treaty basis makes it robust: it is not a discretionary programme a government can close by press release.

The facts

Minimum investment
€4.5k
Total landed cost
EUR 4,500 of business capital, which is your own money and stays yours, plus IND fees of EUR 423 for the main applicant, EUR 254 for a spouse and EUR 85 per child (2026), plus accountant and registration costs
Timeline
1–3 months — Typically 1–2 months to decision
Physical presence
Genuine residence expected; the permit is a residence permit, not a visa of convenience
Family
spouse or partnerchildren
Permanent residency
5 years of continuous legal residence
Citizenship
5 years, but the Netherlands generally requires renunciation of the existing nationality
Language test
A2 Dutch civic integration exam
Dual citizenship
Not permitted — you would have to renounce
Requirements
US citizenshipEUR 4,500 invested in and maintained in a Dutch business (eenmanszaak or BV)registration with the Dutch Chamber of CommerceDutch health insurance and registration with the municipality
What can go wrong
  • The EUR 4,500 must stay in the business account throughout. Dipping below it can cost you the permit — this is the most common failure mode.
  • US citizens remain taxable by the US on worldwide income regardless. The Netherlands-US treaty and foreign tax credits mitigate but do not eliminate this, and Box 3's deemed-return tax has no US equivalent, which creates credit mismatches. Model both systems together before moving.
  • DAFT does not confer the 30% ruling. It is an immigration route, not a tax break — and a DAFT entrepreneur is a full Dutch resident taxpayer, Box 3 included.
  • Dutch naturalisation generally requires renouncing US citizenship. For most Americans that makes DAFT a residence strategy, not a passport strategy.
  • The expedited no-documents procedure is a processing convenience, not a relaxation of the rules. The IND performs random checks and you must hold the evidence.
  • Available only to US nationals — a Japanese equivalent exists on similar treaty grounds, but the treaty does not extend to other nationalities.
Sources (2)

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