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DAFT Visa Taxes: Running Your Dutch Business as an American

10 October 2026 · 8 min read

On the DAFT you run a Dutch business and you owe tax in two countries. In the Netherlands you register a sole proprietorship, keep at least €4,500 invested in it, charge and file BTW (Dutch VAT), and pay Dutch income tax. In the US you keep filing every year, plus an FBAR. The renewal depends on your books.

The DAFT in one minute

The Dutch American Friendship Treaty lets US citizens get a Dutch residence permit to work for themselves, without the points test other non-EU entrepreneurs face. You need US nationality, a business you develop and lead in the Netherlands, and for most business forms an investment of at least €4,500.

It suits freelancers and small service businesses: developers, designers, writers, consultants, coaches. It does not let you take a Dutch job unless an employer gets a work permit (TWV) for you. Family members on your permit may work freely.

This guide does not cover the application itself; for that, use an immigration lawyer. It covers what happens after: the business, the books and the taxes.

Setting up the business

Since April 2024 you no longer need everything in place before you apply. You must register with KVK (Chamber of Commerce) and make the investment within 6 months of the date on your decision letter, or the IND may revoke the permit. Before April 2024, both had to be done before you applied.

The practical sequence for most people:

  1. Register your address with your municipality to get a BSN, then apply for DigiD.
  2. Register an eenmanszaak (sole proprietorship) with KVK. Our step-by-step registration guide covers the appointment and the €85.15 fee (2026).
  3. Open a Dutch business bank account.
  4. Deposit at least €4,500 and keep the proof. An opening balance sheet from an accountant is a good idea.
  5. Wait for your two BTW numbers from the Belastingdienst (Dutch tax authority), usually within two weeks of your start date.

An eenmanszaak is the usual choice: no notary costs, the Dutch entrepreneur deductions are built around it, and the accounting stays simple.

What the IND looks at when you renew

This is where the usual guides go wrong. Most say "keep €4,500 in your bank account". For a renewal, the IND asks for your annual accounts and a balance sheet or income statement. It checks two things: that the business has been active, and that the invested capital has stayed in the business.

So renewal is a bookkeeping test, not just a bank test. Immigration lawyers read it as your business equity (assets minus debts) staying at or above €4,500. Money in your business account is not all yours to count: if you owe the Belastingdienst BTW for the last quarter, that debt comes off.

"Can I take the €4,500 out once the permit is granted?" The safe answer is no. Treat it as money that stays in the business, and plan private withdrawals so equity stays comfortably above €4,500 throughout the year. Losses count against you too.

You also need real annual accounts with a balance sheet. Many Dutch freelancers never make one, but on the DAFT the IND needs it, so set up your bookkeeping to produce it from day one.

The first permit is valid for up to 2 years. After 5 years of residence you can apply for permanent residence.

A first year, worked: Jordan

Jordan is a hypothetical web developer from Portland. Their decision letter is dated 2 February 2026. They register an eenmanszaak on 2 March and deposit €4,500 the same week, well inside the 6-month window.

Hours. The Dutch self-employed deduction needs 1,225 hours of work on the business in the calendar year, even if you start mid-year. From 2 March that is about 28 hours a week, including admin and finding clients. Jordan logs hours from day one. Netto tracks your hours against the 1,225 target as you go, so you know in October whether you are on course.

Invoicing. Jordan's 2026 turnover is €60,000, from three kinds of client:

Client Turnover 2026 BTW on the invoice On the Dutch BTW return
US companies €38,000 None Not declared
Dutch agency €18,000 €3,780 (21%) Box 1a
German company €4,000 Reverse charged Box 3b and ICP declaration

Jordan files four quarterly BTW returns like any other freelancer. Our plain-English BTW guide walks through one quarter box by box, including invoices to EU and US clients.

Dutch income tax. Costs are €7,000, so profit is €53,000. Meeting the hours criterion, Jordan gets the 2026 entrepreneur deductions:

  • Self-employed deduction (zelfstandigenaftrek) €1,200 + starters' deduction (startersaftrek) €2,123: €53,000 − €3,323 = €49,677.
  • SME profit exemption (mkb-winstvrijstelling), 12.7%: €49,677 × 12.7% = €6,309.
  • Taxable profit: about €43,368.

Missing the 1,225 hours costs Jordan the first two deductions, roughly €1,230 more in Dutch tax and Zvw. The SME profit exemption stays, as it has no hours test. The starters' deduction is also only for genuine starters, so check with an adviser if you freelanced before moving. From 2027 it is due to almost disappear, if parliament approves the plan.

The year-end balance. On 31 December Jordan's business has €6,200 in the bank and a laptop worth €1,600, and owes €900 of Q4 BTW. Equity: €6,200 + €1,600 − €900 = €6,900. Fine. Had Jordan moved €3,000 to private savings in December, equity would be €3,900, below €4,500, with nothing wrong in the business itself.

Your Dutch obligations

BTW. You charge 21% on most services to Dutch clients and file quarterly, by 30 April, 31 July, 31 October and 31 January. Services to US business clients carry no Dutch BTW. EU business clients are reverse charged and go on the ICP declaration. See how a BTW quarter works in our BTW guide.

Income tax. As a Dutch resident you are taxed in the Netherlands on your worldwide income, including US clients, savings and investments. Business profit goes in box 1, at 35.75%, 37.56% and 49.50% for 2026. On top comes the income-related Zvw (health care) contribution of 4.85%. Savings and investments go in box 3; US retirement accounts need a specialist.

The 30% ruling is not for you. It is a tax break for employees recruited from abroad, applied for by the employer. Americans often hear about it from friends on employment visas and plan around it by mistake.

Your first Dutch return. In the year you arrive you file a migration return (the M-form) instead of the standard one. Keep your records for 7 years.

Your US obligations do not stop

The US taxes its citizens wherever they live. This section is for awareness only; work with a US tax adviser who knows the Netherlands.

You still file a US return. Americans abroad get an automatic extension to 15 June, but interest on any tax due runs from 15 April. Form 4868 gives you until 15 October.

Exclusion or credit. The foreign earned income exclusion (Form 2555) lets you exclude up to $132,900 of foreign earned income for 2026, but only if you file a return claiming it. In your arrival year you may need extra time to qualify. The foreign tax credit (Form 1116) instead credits Dutch tax against US tax. Because Dutch rates are often higher, the credit is often the better choice. Your adviser can tell you which fits.

FBAR. If your non-US accounts together exceed $10,000 at any time in the year, you file FinCEN Form 114. Your Dutch business account counts, and the €4,500 alone gets you about halfway. It is due 15 April, with an automatic extension to 15 October.

Self-employment tax. The exclusion does not remove US self-employment tax, but the US–Netherlands social security agreement does: self-employed people living in the Netherlands pay into the Dutch system instead. It is not automatic. Request a certificate of coverage (form NL/USA 101) from the SVB and attach a copy to your US return every year.

First-year checklist

  • Within 6 months of your decision letter: KVK registration done and €4,500 invested, with proof filed away.
  • Dutch business account opened; ask an accountant about an opening balance sheet.
  • BTW numbers received; invoice templates ready for Dutch, EU and US clients.
  • Hours log running from day one, aiming for 1,225 by 31 December.
  • BTW returns filed each quarter, including empty ones.
  • Certificate of coverage (NL/USA 101) requested from the SVB.
  • Dutch health insurance taken out (normally within four months of arrival).
  • A US tax adviser chosen before 15 April.
  • Private withdrawals planned so business equity stays well above €4,500.
  • Annual accounts with a balance sheet ready well before your renewal.

For the Dutch side of the year, Netto keeps your invoices to US, EU and Dutch clients in one place, matches payments from your bank account (read-only), prepares each BTW return box by box with ICP figures, and estimates your income tax as the year goes. You still file everything yourself, and Netto is not tax or immigration advice.

Questions people ask

How much money do I need for the DAFT visa?

For most business forms the IND requires a minimum investment of €4,500 in your business. On top of that come the KVK fee (€85.15 in 2026), IND fees and living costs.

Do I need the €4,500 and KVK registration before I apply?

Not for a first-time application since April 2024. You must register with KVK and make the investment within 6 months of the date on your decision letter, or the IND may revoke the permit.

What does the IND check when I renew my DAFT permit?

Your annual accounts and a balance sheet or income statement, to see whether the business has been active and the invested capital stayed in it.

Can I work a regular job on the DAFT?

Only if an employer gets a work permit (TWV) for you. Family members on your permit can work freely.

Do I pay US self-employment tax while living in the Netherlands?

Normally not. Under the US–Netherlands social security agreement you are covered by the Dutch system. Request a certificate of coverage from the SVB and attach it to your US return every year.

Do I still have to file a US tax return if my income is under the exclusion?

Yes. The foreign earned income exclusion only applies if you file a return that claims it. Americans abroad get an automatic extension to 15 June, but interest on tax due runs from 15 April.

Can I use the 30% ruling on the DAFT?

No. It is for employees recruited from abroad and is applied for by the employer.

Sources

Let Netto handle the bookkeeping.

Receipts read from a photo, your bank matched to your invoices, the BTW return prepared for you to file.

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