Complete Guide to the Dutch-American Friendship Treaty in 2025

The Dutch-American Friendship Treaty (DAFT) represents one of the most accessible pathways for U.S. citizens to live and work in the Netherlands. Since its inception in 1956, this bilateral agreement has enabled thousands of Americans to establish businesses and create new lives in one of Europe's most progressive countries.

What is the Dutch-American Friendship Treaty?

The DAFT is a bilateral treaty between the United States and the Netherlands that allows U.S. citizens to obtain Dutch residency by starting and operating a business in the Netherlands. Unlike other business visa programs that require significant investment amounts or complex business plans, DAFT offers a relatively straightforward path to Dutch residency.

Key Benefits of DAFT

No minimum education requirements
Relatively low investment threshold (€4,500)
Can work remotely for U.S. companies
Path to permanent residency after 5 years
Spouse and children can join you
Access to Dutch healthcare and social benefits

DAFT Requirements in 2025

1. Investment Requirements

The minimum investment required for DAFT is €4,500 in a Dutch business bank account. This amount must be invested in your Dutch business and cannot be used for personal expenses. The investment can be used for:

Business equipment and supplies
Marketing and advertising
Professional services (legal, accounting)
Office rent and utilities
Business insurance

2. Business Requirements

Your business must be:

Real and active: You must genuinely operate the business
For profit: Non-profit organizations don't qualify
Legal: All activities must comply with Dutch law
Registered: Properly registered with the Dutch Chamber of Commerce (KvK)

3. Personal Requirements

Must be a U.S. citizen (dual citizens qualify)
Must be 18 years or older
Clean criminal background
Sufficient funds to support yourself (beyond the €4,500 investment)
Valid health insurance coverage

The DAFT Application Process

Business Planning and Registration

Develop your business concept and register with the Dutch Chamber of Commerce (KvK). This includes choosing your business structure (usually a sole proprietorship or BV).

Open Dutch Bank Account

Open a business bank account in the Netherlands and deposit the minimum €4,500 investment. Some banks may require you to visit in person.

Gather Required Documents

Collect all necessary documentation including passport, birth certificate, criminal background check, business plan, and financial statements.

Submit Application to IND

Submit your residence permit application to the Dutch Immigration and Naturalization Service (IND). Processing typically takes 8-12 weeks.

Arrive in the Netherlands

Once approved, you have 90 days to travel to the Netherlands and complete your registration with local authorities.

Common DAFT Business Ideas

Consulting Services

• Marketing consulting
• IT consulting
• Business consulting
• Financial advisory

Digital Services

• Web design/development
• Digital marketing
• Content creation
• Software development

Creative Services

• Photography
• Graphic design
• Writing/translation
• Music/video production

Import/Export

• Specialty foods
• Handcrafted goods
• Technology products
• Art and antiques

Renewal and Path to Permanent Residency

DAFT permits are initially granted for 2 years and can be renewed for additional 2-year periods. To renew, you must demonstrate that:

Your business is still active and generating income
You continue to meet the investment requirements
You haven't committed any crimes
You have proper health insurance

After 5 years of continuous residence, you can apply for permanent residency (long-term EU resident status) or even Dutch citizenship if you meet the language and integration requirements.

Pro Tip: Working Remotely

Many Americans use DAFT to continue working remotely for their U.S. employers while living in the Netherlands. You can register a consulting business that provides services to your former employer, allowing you to maintain your income while meeting DAFT requirements.

Costs and Timeline

Typical Costs:

IND application fee: €1,365
Business investment: €4,500 minimum
Chamber of Commerce registration: €75
Legal/consulting fees: €2,000-5,000
Document translation/apostille: €200-500
Total estimated cost: €8,000-12,000

Timeline:

Document preparation: 2-4 weeks
IND processing: 8-12 weeks
Total process: 3-4 months

Common Mistakes to Avoid

Using investment funds for personal expenses

The €4,500 must be used strictly for business purposes and properly documented.

Incomplete business registration

Ensure your business is properly registered with KvK before applying.

Insufficient supporting documentation

Provide comprehensive business plans and financial documentation.

Not maintaining business activity

Your business must remain genuinely active throughout your stay.

Why Work with YourLegals?

Navigating the DAFT application process can be complex, especially when dealing with Dutch bureaucracy from abroad. At YourLegals, we've successfully guided over 1,000 Americans through the DAFT process with a 100% success rate.

Our comprehensive service includes business registration assistance, document preparation, IND application submission, and ongoing support throughout your first years in the Netherlands. We handle all the complexity so you can focus on planning your new life in the Netherlands.

Ready to Start Your DAFT Journey?

Schedule a free consultation to discuss your specific situation and get personalized guidance on your path to the Netherlands.

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