Are you an American citzen and would you like to set up a business and live in the Netherlands? This is possible under the Dutch American Friendship Treaty (DAFT).
Purpose Dutch American Friendship Treaty
The purpose of DAFT is to promote the economies of both the United States of America and the Netherlands and to stimulate trade and business on a bi-lateral basis.
Conditions to obtain a residence permit under DAFT
The main conditions to obtain such a residence permit for self-employed under DAFT are;
- you do business between the Netherlands and the United States; OR
- you develop and lead the general business of a company in The Netherlands (you are representing the American company or you have a key position) and you have invested or are in the process of investing a significant capital in this company. Hereunder you will find more info from the Dutch immigration authorities IND about significant capital;
- you carry out an independent profession unless you have a certain public duty or a position in healthcare or the public security sector.
What is ‘significant capital’?
Would you like to apply for a residence permit under DAFT? The ‘signifcant capital’ you need to invest depends on the corporate structure:
- Eenmanszaak (sole trader): a capital with which the self-employed person can exploit the company. The IND considers each situation individually, but a minimum of € 4,500 applies.
- Vennootschap onder firma (general partnership): a capital of at least 25% of the company’s capital with a minimum of € 4,500.
- Commanditaire vennootschap (limited partnership) to the managing partner (beherend vennoot) applies the same as for a vennootschap onder firma. The silent partner does not execute a company and therefore the treaty does not apply to the silent partner. Besloten vennootschap: a capital of at least 25% of the paid-in capital with a minimum of € 4,500.
- Naamloze vennootschap (joint-stock company) : at least 25% of the paid-in capital. The paid-in capital in the Netherlands is at least € 45,000, which makes the significant capital at least € 11,250.
The IND does not consider borrowed capital to be part of the significant capital. The IND legal fees for this application are € 1.379,00. The residence permit will be issued for two years and after these two years there is an option to renew the permit for another 5 years. Your partner and children can join you of course!
We gladly assist you with the application and our tax partner gladly assists you with the tax advice that is required in your situation. Please do contact us to get more information or a quote!
