More and more Americans are choosing to leave the United States and move to the Netherlands. Political uncertainty, the search for a better work-life balance, and the desire for long-term stability are important reasons behind this trend. What stands out is that a significant number of these newcomers are relocating under the Dutch–American Friendship Treaty (DAFT).
What is the DAFT visa?
The DAFT visa is a residence permit available only to US citizens who want to live and work in the Netherlands. Compared to other residence permits, the requirements are relatively accessible. Applicants must register a Dutch business, invest a modest amount of capital, and actively operate as a sole proprietor in the Netherlands.
Why the DAFT visa is popular among Americans
The DAFT visa is especially attractive to freelancers, consultants, digital entrepreneurs, and independent professionals who want flexibility and control over their work. It offers Americans a straightforward way to start a business in the Netherlands while benefiting from Europe’s market access, strong infrastructure, and high quality of life.
The Netherlands is also known for its international character and English-friendly environment, which makes settling in and doing business more accessible for American entrepreneurs.
DAFT means business and tax obligations
Applying for and maintaining a DAFT visa is not just about immigration. DAFT holders are treated as Dutch sole proprietors, which comes with important tax responsibilities. These include filing Dutch income tax returns, handling VAT obligations, maintaining proper bookkeeping, and correctly applying Dutch tax deductions and business rules.
At the same time, US citizens remain subject to US tax rules on worldwide income. This creates a cross-border tax situation that requires careful coordination between Dutch and US tax obligations.
Our role as specialists in global mobility and sole proprietorship taxation
This is where many DAFT entrepreneurs run into difficulties. Most tax advisors focus either on Dutch local businesses or on international mobility, but rarely on both. DAFT entrepreneurs operate exactly at the point where these two areas meet.
At TACS Solutions, we specialize in supporting DAFT holders with both global mobility and Dutch sole proprietorship taxation. This expertise is crucial not only when applying for the DAFT visa, but also for running the business successfully in the years that follow. We guide clients through business registration, ongoing tax compliance, and international tax coordination, ensuring immigration, business, and tax matters are fully aligned from day one and remain compliant over time.