Doing Business in the Netherlands under the Dutch-American Friendship Treaty (DAFT)

What the treaty allows

The purpose of both treaties is to promote trade and investment between the Netherlands, the United States, and Japan.
Under these treaties, U.S. and Japanese citizens can apply for a residence permit as a self-employed entrepreneur, allowing them to establish or manage a business in the Netherlands.

Main conditions

To qualify under the treaty, the following conditions apply:

• You hold U.S. or Japanese nationality.
• You establish or manage a business in the Netherlands.
• You invest at least €4,500 of your own capital into the business.
• You register your business with the Dutch Chamber of Commerce (KvK) within six months after receiving your residence permit.
• Your business remains active and operational (demonstrated through annual accounts and financial activity).

Your business may be a sole proprietorship, private limited company (BV), or another legal form — as long as you personally bear financial and operational responsibility.

Updated IND procedure

The Dutch Immigration and Naturalisation Service (IND) updated the process in 2024:

• New applicants have six months to complete the KvK registration and make the required investment.
• If you’re switching from another residence purpose (for example, from a highly skilled migrant permit), you must include all supporting documents with your application.
• When applying for an extension, the IND will review your annual accounts and profit and loss statements to verify that your company has been active and that the invested capital remains in the business.

Failure to meet these requirements may lead to withdrawal of your residence permit.

Why this matters

For many U.S. and Japanese entrepreneurs, this treaty offers a unique opportunity:

• You can live and work in the Netherlands without needing an employer or sponsorship.
• You gain access to the European market through a Dutch business structure.
• You can benefit from favorable Dutch tax schemes such as the self-employed deduction and the SME profit exemption.
• The process is simpler and more affordable than most other residence permits

Practical tip

Most treaty-based entrepreneurs start with a sole proprietorship (eenmanszaak) or a Dutch BV. Once registered with the KvK and the €4,500 investment is made, you can:

• Open a Dutch business bank account.
• Register for VAT and payroll taxes.
• Renew your residence permit based on your active business.

Conclusion

The Dutch-American Friendship Treaty and the Dutch-Japanese Trade Agreement make the Netherlands one of the most accessible EU countries for entrepreneurs from the U.S. and Japan.

With a modest investment, a clear business plan, and an active KvK registration, you can establish your company, live legally in the Netherlands, and enjoy all the benefits of doing business in Europe.

Interested in setting up your company under the treaty, or need guidance for your IND application?

Our experts at AAme Adviseurs  can help you structure your business, handle registrations, and ensure full immigration and tax compliance.