Are you an American entrepreneur looking to set up in the Netherlands? The DAFT treaty could be the answer!
Wednesday 2 July 2025
In an increasingly international business climate, the Dutch-American Friendship Treaty, also known as the DAFT Treaty, provides US citizens with the chance to start a business in the Netherlands. The treaty allows you to obtain a residence permit in the Netherlands as an independent entrepreneur under relatively simple conditions.
What is the DAFT Treaty?
The Treaty of Friendship, Commerce, and Navigation between the Netherlands and the United States, which came into force in 1957, aims to promote mutual trade and economic relations. For American entrepreneurs, this means that they can reside in the Netherlands under certain conditions to set up a business or carry out commercial activities.
The DAFT Treaty has two main objectives:
- To conduct trade between the US and the Netherlands.
- To set up or manage a business in which significant capital has been invested.
Who is the DAFT Treaty intended for?
It is exclusively available to US citizens who wish to establish themselves as independent entrepreneurs in the Netherlands. You must:
- Want to start or manage a business;
- Invest significant capital in this company.
- Demonstrate a desire to develop your business activities in the Netherlands.
The amount of this investment depends on the legal form chosen:
|
Legal form |
Required capital |
|
Sole proprietorship |
Minimum € 4.500 |
|
General partnership |
At least 25% of the company capital (min. €4,500) |
|
Limited partnership |
Equivalent to the general partnership requirement for managing partners |
|
Private limited company (BV) |
At least 25% of the paid-up capital (min. €4,500) |
|
Public limited company (NV) |
At least 25% of €45,000 = €11,250 |
Please note that the capital must consist of equity and cannot be borrowed.
How does the application procedure work?
When applying, you must clearly state:
- What type of company you are setting up
- What your business activities will be;
- How and within what timeframe you will invest the required capital.
Once your application has been approved, you will receive a two-year residence permit, provided that you:
- Register your company with the Chamber of Commerce;
- Actually make the capital investment by depositing the required amount into the company's business bank account.
Questions about the DAFT agreement?
At Delissen Martens, we combine legal expertise with a keen understanding of international business issues. We guide American clients through the process of obtaining a residence permit as an independent entrepreneur in the Netherlands, step by step. Our immigration and administrative law specialists are well versed in the application of the DAFT agreement and will ensure the smooth legal processing of your application.
