Dutch American Friendship Treaty (DAFT) Explained: One of the Easiest Ways for Americans to Move to the Netherlands

For many Americans, moving to Europe can feel complicated.

Work visas often require employer sponsorship. Retirement visas may require significant passive income. Other residency programs can involve lengthy application processes and strict eligibility requirements.

The Netherlands offers a lesser-known pathway that is uniquely available to U.S. citizens: the Dutch American Friendship Treaty, commonly known as DAFT.

For entrepreneurs, freelancers, consultants, and online business owners, DAFT may be one of the most accessible routes to living in Europe long-term.

Here's what Americans need to know.

What Is the Dutch American Friendship Treaty?

The Dutch American Friendship Treaty (DAFT) is an agreement between the United States and the Netherlands that allows American entrepreneurs to obtain Dutch residency by starting or operating a business in the Netherlands.

Unlike many business immigration programs, DAFT does not require creating jobs, making a large investment, generating a minimum level of revenue, or obtaining employer sponsorship.

Instead, applicants must establish a legitimate business and meet a relatively modest investment requirement.

Because of its simplicity compared to many European immigration pathways, DAFT has become increasingly popular among remote workers, freelancers, and online entrepreneurs.

Who Is DAFT Designed For?

DAFT is generally best suited for:

• Freelancers
• Consultants
• Online business owners
• Coaches
• Designers
• Developers
• Marketing professionals
• Content creators
• Agency owners
• E-commerce entrepreneurs

The program is particularly attractive for Americans who already earn income independently and are not tied to a traditional employer.

Why DAFT Is So Popular

Most countries require one of the following: a local job offer, significant passive income, large investments, or specialized professional skills.

DAFT takes a different approach. Instead of asking whether an employer wants to hire you, the Dutch government asks whether you can support yourself through business activity.

For many Americans, this creates a much more attainable path to European residency.

How DAFT Works

The basic concept is straightforward. An American citizen establishes a business in the Netherlands and applies for residency under the treaty.

While requirements can change, applicants are generally expected to:

• Register a Dutch business
• Open a Dutch business bank account
• Deposit the required investment amount
• Demonstrate legitimate business activity
• Maintain health insurance
• Meet residency requirements

The process is often considerably simpler than traditional entrepreneur visa programs found elsewhere in Europe.

The Investment Requirement

One of DAFT's most attractive features is its relatively low investment threshold.

Historically, applicants have been required to maintain approximately €4,500 in a Dutch business account.

Compared to entrepreneur programs that require investments of tens or hundreds of thousands of dollars, this requirement is remarkably accessible.

However, applicants should remember that the investment requirement alone is not enough. Authorities expect the business to be genuine and actively operated.

What Kind of Businesses Qualify?

Many Americans assume they need to open a storefront, hire employees, or launch a major company. In reality, qualifying businesses often include:

• Consulting practices
• Freelance services
• Marketing agencies
• Software businesses
• Coaching businesses
• Content creation businesses
• E-commerce operations
• Online education businesses

The key factor is that the business must be legitimate and operated as an actual enterprise rather than existing solely to satisfy immigration requirements.

Can Remote Business Owners Use DAFT?

Yes. This is one reason the program has become so popular.

Many Americans use DAFT while continuing to serve U.S.-based customers and clients. For example:

• A graphic designer serving American clients
• A software developer working remotely
• A content creator earning advertising revenue
• An online course creator
• A marketing consultant

In many cases, the customers remain in the United States while the entrepreneur lives in the Netherlands.

Can Your Family Come With You?

In many cases, spouses and dependent children may be eligible to accompany the primary applicant.

This makes DAFT particularly appealing for families seeking a long-term move to Europe. However, family immigration rules can be complex, and requirements should always be verified before making relocation plans.

Does DAFT Lead to Permanent Residency?

One of the biggest advantages of DAFT is that it can support long-term residence in the Netherlands.

Many Americans initially use DAFT as a way to test life abroad but later pursue longer-term residency options. As with other immigration programs, maintaining eligibility and complying with Dutch immigration requirements remains important throughout the process.

What About Dutch Citizenship?

Some Americans view DAFT as a potential pathway toward eventual Dutch citizenship. However, citizenship rules are separate from DAFT itself.

Applicants considering long-term settlement should research:

• Residency requirements
• Naturalization timelines
• Language requirements
• Integration requirements
• Dual citizenship rules

These factors may influence long-term planning.

DAFT vs Portugal's D7 Visa

Americans often compare DAFT with Portugal's D7 Visa.

DAFT May Be Better If:

• You run a business
• You freelance
• You are self-employed
• You want an entrepreneur-focused pathway
• You actively generate income

Portugal's D7 May Be Better If:

• You are retired
• You rely on passive income
• You receive pension income
• You do not want to operate a business

The best choice depends largely on how you earn money.

Challenges to Consider

DAFT offers tremendous opportunities, but it is not perfect. Potential challenges include:

Higher Cost of Living

The Netherlands is generally more expensive than many popular expat destinations. Housing costs can be particularly significant.

Housing Availability

Finding housing can be difficult in some Dutch cities. This challenge affects both locals and expats.

Tax Considerations

Americans remain subject to U.S. tax obligations while living abroad. Dutch tax rules may also apply depending on your circumstances. Professional tax guidance is often worthwhile.

Weather and Lifestyle Preferences

Not everyone enjoys the Dutch climate. Lifestyle fit matters just as much as immigration eligibility.

Who Should Seriously Consider DAFT?

DAFT is worth exploring if you:

• Own an online business
• Freelance full time
• Run a consulting practice
• Want to live in Europe
• Need a residency pathway that doesn't require employer sponsorship
• Have clients or customers that can be served remotely

For many Americans, it is one of the most accessible entrepreneur-focused residency programs available anywhere in Europe.

The Bottom Line

The Dutch American Friendship Treaty remains one of the most unique immigration opportunities available exclusively to U.S. citizens.

While many European residency programs focus on employment sponsorship, retirement income, or significant investments, DAFT creates a pathway for entrepreneurs and self-employed Americans who want to build a life in the Netherlands.

For online business owners, freelancers, consultants, and other independent professionals, it may be one of the simplest routes to establishing residency in Europe.

The key question isn't whether DAFT is a good program. It's whether the Netherlands is the right fit for your lifestyle, business goals, family situation, and long-term plans.

Thinking about moving to the Netherlands?

Use NextLatitude to compare DAFT with other residency options, estimate living costs, explore visa pathways, and determine whether the Netherlands is the right destination for your next chapter abroad.