DAFT Visa Application: 5 Practical Insider Tips They Don't Tell You
So, you have decided to move to the Netherlands with the help of the Dutch-American Friendship Treaty (DAFT). You can read our Ultimate Guide to know more about the requirements for the DAFT.
But just like with any government process, there is the "official theory" and then there is what really happens every day.
At TaxDoctor, we assist US entrepreneurs with the Visa application, the setup of the company and the ongoing administration. We can see where people get stuck, waste time, and lose money. To save you the trouble, here are five useful, straightforward tips that you should know before you get on the plane.
1. Get your Apostilles done in the US.
This is the mistake we see the most often. You need your birth certificate (and marriage certificate if you have one) to register in the Netherlands. But you can't just bring the paper you have in your drawer. It requires an Apostille, which indicates that your document is original.
The Trap: You can only get this stamp in the US, and usually from the Secretary of State in the state where the document was made. You can't do this after you've already arrived in Amsterdam.
The Fix: Do this a few months before you leave. If you forget it, you'll have to send documents back and forth, which will slow down your registration by weeks.
2. The "Bank Account vs. BSN" Catch-22
You have to put €4,500 into a Dutch business bank account to get your DAFT visa approved.
Most traditional banks (like ABN Amro, Rabobank, and ING) will need a BSN (Citizen Service Number) which allows you to open a bank account. To get a BSN, you have to sign up with the municipality, but you need a residence permit to do that.
Don't panic; here's what to do.
1. Open an account on the internet. Neobanks like Bunq are fully regulated and usually let you open an account with just a US passport and a temporary address. This process is usually the quickest way to get your €4,500 deposited.
2. Help from TaxDoctor: We know which bank branches are "expat-friendly" and can help you get through this.
3. The €4,500 is not a one-time payment.
The DAFT needs at least €4,500 to invest. Many people think that all they need to do is show this amount on Day 1, and then they can buy a laptop or pay their rent.
Do not do this! This cash sum is capital for equity. The Immigration Service (IND) says that this amount must stay comfortably in your business equity. If you spend it and your balance nears zero, you may lose your visa when you check or renew it. Let your bank account investment be a "frozen" security deposit,
4. Your first battle is in your home
You can't register at the municipality (Gemeente) unless you have a valid rental agreement. You can't get a BSN if you don't register. The Dutch housing market is very tight, especially in Utrecht and Amsterdam. Landlords often want to see proof of employment, which you don't have yet because you're a new freelancer.
The solution is to either pay several months' rent in advance to get a place or look for short-term "short-stay" apartments that allow registration. Don't book an Airbnb for three months unless the host says you can register at that address (most hosts don't allow this).
5. Don't set up your taxes yourself
Many Americans can correctly fill out their visa applications, but they make mistakes with their taxes, such as receiving a 30% ruling and filing their taxes. As soon as you land, you become a Dutch tax resident, but you are also a US tax resident. This means you'll have to file taxes in NL and the US. This must be set up in a way that reduces your taxes in the Netherlands while not getting you in trouble with the IRS. Here's where we come in.
TaxDoctor takes care or Dutch taxes and immigration but also is aware of your US situation. Unlike immigration lawyers, who often stop assisting you after you obtain your visa, we continue to provide support. We take care of your VAT and set up your administration. We also make sure you stay compliant on both sides of the ocean.
Want a smooth start? Don't let the details stand in the way of relocating to the Netherlands and establishing your business. We can handle the ongoing paperwork for the company and the setup.
