Do you plan on living in the Netherlands? The Simple Guide for US Business People Who Want the DAFT Visa
Many freelancers and business owners in the US think they would be better off living in Europe. A central location, a great quality of life, and more free time. But the bureaucracy regarding the visa wakes you up from that dream very quickly.
But not in the Netherlands!
The Dutch-American Friendship Treaty (DAFT), signed in 1956, gives US citizens a sort of "Golden Ticket" that lets them avoid the strict rules that most other non-EU immigrants have to follow.
Every day, TaxDoctor helps US citizens living abroad do this. But there is more to do than just get the visa. The most important information is here.
What is DAFT?
The DAFT treaty is for US citizens an easy way to start living here. One of the most important requirements is starting a business here.
Unlike the standard "self-employed residence permit," you don't have to prove that your business serves an "essential Dutch interest," which is a tough test to pass. You only need to be an American with a business plan and a small amount (€4500) of money to invest.
The Requirements (Simple Checklist)
1. Nationality: You must be a US citizen with a valid passport.
2. Business: You must be starting a business (BV or sole proprietorship) or moving your existing US business to the Netherlands.
3. Invest: You must invest at least €4500; it is better to have more in your Dutch business bank account. It is good to know that you need to keep this amount of money in your bank account at all times.
4. Clean Record: You must not have stayed illegally in the NL and you must have a clean record, with no criminal history.
The Process: From JFK to Schiphol
Based on our experience helping clients, here is a realistic timeline:
1. The Preparation:
Make sure you have the right papers. When registering yourself with the Dutch municipality, US papers must have an apostille to show that they are real. Showing your original proof of birth is one way to show that you are from the US. Also know what kind of business type you want to start.
2. The Appointment:
Schedule an appointment with the IND (Dutch immigration office). Tip: Do these tasks a long time ahead of time. Slots fill up quickly, sometimes months in advance.
3. The "Bank Account" Problem:
This is where most do-it-yourselfers get stuck. First you need to put €4500 You need to deposit money into a Dutch business bank account to obtain the visa. However, banks usually Banks typically require proof of residence before allowing you to open an account. It's a classic "Catch-22." We can help you find banks that are friendly to expats and help you with the paperwork you need to break this loop.
4. Registration at the KvK
You will make your business official when you get a KvK number (the Dutch Chamber of Commerce) and a VAT number, since the VAT number is given to you automatically.
The Trap: Don't Forget the Taxes.
A lot of US expats don't think about the taxes, just the visa. This misunderstanding is a mistake that will cost you. You can pick a BV (Dutch LLC) or an Eenmanszaak (sole proprietorship). It's a silly rule, but if you expect more than €67,000 in profits, you should choose the BV.
1. An eenmanszaak (sole proprietorship) is easy to set up, but you are personally responsible.
2. A BV (Dutch LLC) needs more paperwork, but it protects you from being sued and may even help you save money on taxes (like the 30% ruling in some employment structures).
And then there is the IRS. Even if you are a US citizen, you still have to file with the IRS. You need a plan that stops you from being taxed twice and makes sure you follow the rules on both sides of the ocean.
Why You Should Choose Us
You will have to talk to at least two groups of people about your visa. Many people get annoyed here because no one knows all the information.
1. Immigration lawyers can help you get your visa, but they can't help you with business setup and your taxes or keeping track of a €4500 investment.
2. Dutch accountants can keep your books, but they may not know what the DAFT rules are or how US tax treaties work.
You have to hire two people who don't know everything.
We fix this at TaxDoctor. We are one of the few companies that can handle the whole lifecycle. We don't just help you get into the country; we also help you stay in business.
Are you ready to move?
We can help you with everything from getting a visa to setting up a BV to keeping your books up to date.
If you're serious about moving, let's make sure your setup is tax-efficient from the start.
