DUTCH AMERICAN FRIENDSHIP TREATY
Are you a U.S. citizen looking to start a business in the Netherlands? Then you are eligible to apply for the Dutch American Friendship Treaty. U.S. citizens don’t need to apply for a regular work and residence permit in the Netherlands but can make use of the DAFT. The purpose of the Dutch American Friendship Treaty is to promote the economies of both the U.S. and the Netherlands.
WHAT IS THE DUTCH AMERICAN FRIENDSHIP TREATY?
The treaty makes it possible for American entrepreneurs to work and reside in the Netherlands. There is no maximum age set for the DAFT and the permit will be issued for 2 years. When finalizing the two years, it can be extended. Your spouse and children will also be permitted to reside in the Netherlands.
BUSINESS OPPORTUNITIES UNDER THE DAFT
There are multiple business options under the DAFT. You may start your own business in the Netherlands and become an entrepreneur. You may start a BV and must own at least 25% of the assets. In this case, you might also be eligible for the 30% ruling.
As opposed to other non-EU citizen, U.S. citizens won’t need to prove that their company has an innovative value to the Netherlands.
When setting up a business under the DAFT – this will often be a sole proprietorship – the requirements are the following:
- The company must be registered with the Dutch Chamber of Commerce (KvK)
- The company needs to have a minimal capital investment of €4.500 in a Dutch business bank account and must be maintained throughout the entire period.
- You may also open a branch of an existing U.S. company.
Keep in mind that if you receive a job offer to work in the Netherlands – whether the company is established in the Netherlands or an international company – you will need to apply for the different type of visa, since the DAFT is only open to entrepreneurs and does not allow you to work in any other way. Broadstreet works together with all renowned migration lawyers regarding the DAFT.
Broadstreet can assist you in finding out which business set up is most advisable for you and explain the pro’s and cons of the different options.
Once the business is set up, an opening balance statement which shows the investment is required. Broadstreet can assist you with the preparation of this balance sheet.
Broadstreet does not submit applications for the visa, but works together with all renowned migration lawyers regarding the DAFT.