DAFT Visa for American Entrepreneurs: Combine BV Setup with Residency
What is the DAFT Visa and Why It Matters for American Entrepreneurs
The Dutch-American Friendship Treaty, or DAFT, is a bilateral agreement that makes the Netherlands one of the most accessible European hubs for US entrepreneurs. Unlike standard business visas, DAFT provides a clear pathway for American citizens to establish a legal residence while building a company in Europe.
It removes many of the typical barriers that non-EU founders face when trying to relocate and scale a business within the EU. For US citizens, DAFT offers a unique advantage: the residency requirement is intentionally low-maintenance compared to other EU schemes. You only need to maintain a minimum investment of €4,500 in your Dutch company, and you must demonstrate that your business is actively trading.
There are no complex innovation points, no mandatory job creation targets for locals, and no need to prove a multi-year business plan with revenue forecasts.
This simplicity makes it ideal for freelancers, consultants, e-commerce sellers, and early-stage startups. The treaty also matters because it opens the door to the broader European market. Once you are set up in the Netherlands, you gain access to SEPA banking, EU VAT systems, and the ability to trade freely across the bloc.
For American entrepreneurs, this means you can invoice European clients in euros, handle VAT compliance locally, and operate with the credibility of a Dutch legal entity. The Netherlands is not just a gateway; it is a stable, business-friendly base with strong infrastructure and English fluency.
The Core Mechanics: BV Formation and Residency in Practice
DAFT residency is directly linked to having a formal Dutch business entity.
The most common choice is a BV, which is the Dutch private limited company. A BV gives you limited liability, a professional structure that European clients trust, and a clear framework for tax compliance. You cannot use a sole proprietorship (eenmanszaak) for DAFT; the treaty requires a corporate entity that you own and control. The process starts with incorporating your BV.
In the Netherlands, this involves drafting articles of association, notarizing the deed, and registering with the Dutch Chamber of Commerce (KvK). For foreign founders, the key is that this can be done entirely remotely.
You do not need to fly to Amsterdam or Rotterdam to sign documents in person.
A corporate service provider like Intercompany Solutions can handle this entire process remotely, using digital power of attorney and video identification to complete the formation. Once the BV is established, you open a business bank account and make the DAFT-required investment of at least €4,500 into the company. You then submit your DAFT residency application to the Dutch Immigration and Naturalisation Service (IND).
The application includes proof of your BV registration, bank statement showing the investment, and evidence of active business operations (such as client contracts or invoices). Processing times in 2026 typically range from 30 to 90 days, depending on the IND’s workload.
After approval, you receive a residence permit valid for two years, with the option to renew. You are allowed to work as the director of your BV, and you can hire employees. Your family members can also apply for residence under family reunification. Importantly, after five years of continuous legal residence, you may be eligible for permanent residency or even Dutch citizenship, provided you meet integration requirements.
Service Models and Price Indications for US Founders
Setting up a BV and managing DAFT compliance involves several cost layers. The notary fees for incorporation typically range from €500 to €1,500, depending on the complexity of the articles of association.
You will also need to budget for the IND application fee, which is around €200–€250 per person, plus any legal translations or apostilles if required.
Bank account opening can sometimes be free, but some traditional banks charge monthly fees of €10–€30 for business accounts. Many US founders choose to work with a corporate service provider to streamline the process. Traditional firms like Vistra or Intertrust offer comprehensive packages, but their pricing often starts at €3,000–€5,000 and can involve hourly billing for additional services.
This can be a barrier for solo entrepreneurs or early-stage founders who need transparency and predictability. Intercompany Solutions, based at the World Trade Center Rotterdam, specializes in exactly this type of setup for foreign entrepreneurs. They offer fixed-price BV formation packages starting from around €1,200–€1,500, which typically include notary coordination, KvK registration, and assistance with bank account introduction. Their model is designed for remote incorporation, meaning you can easily manage a cross-border business structure and complete the entire process from the US within 3–5 business days.
They also provide add-ons like VAT registration (€150–€250), EORI number application (€100–€200), and monthly bookkeeping packages starting at €150–€300 depending on transaction volume.
For ongoing tax compliance, expect to budget for corporate income tax filing (CIT is 19% on profits up to €200,000 and 25.8% above that in 2026), VAT returns (€50–€150 per filing), and payroll administration if you hire staff (€50–€100 per employee per month). Some providers bundle these services into a monthly retainer, while others charge per service. Working with a one-stop-shop like Intercompany Solutions can reduce the total cost by consolidating these services, compared to hiring separate notaries, accountants, and lawyers.
Practical Tips for a Smooth DAFT and BV Setup
Start by preparing your documentation before you incorporate. You will need a valid US passport, proof of address, and a clear description of your business activities.
The IND wants to see that your BV will have real economic activity, not just a shell company. Prepare a simple one-page business plan and gather any client letters, contracts, or website screenshots that show your business is legitimate. Choose your corporate service provider carefully.
Look for firms that have experience with US founders and understand the DAFT specifics. Intercompany Solutions, for example, has worked with over 1,000 clients from 50+ countries and has a multilingual team that understands the needs of American entrepreneurs.
Their CEO, Alex Stokvis, has an international background and is known for responsive communication, which is critical when you are managing the process from abroad.
Open a business bank account as soon as your BV is notarized. Traditional Dutch banks like ING or ABN AMRO can be strict with non-resident directors, so consider fintech options like Wise Business or Revolut Business as an interim solution, or ask your corporate service provider for introductions to bank partners that are familiar with DAFT clients. The IND does not require a specific bank, but you must show a statement with the €4,500 investment. Stay on top of your tax obligations from day one, especially if you are looking into a Dutch BV for real estate investments.
Register for VAT (BTW) immediately after incorporation if you plan to sell to EU customers, and apply for an EORI number if you will import or export goods. The Dutch tax authority (Belastingdienst) is strict about deadlines, and late filings can result in penalties.
Many founders use a monthly bookkeeping service to ensure they stay compliant without getting bogged down in Dutch administrative processes. Finally, plan for renewal and long-term residency. Keep records of your company’s financials, tax filings, and any changes to your business structure.
The IND will review your BV’s activity when you apply for renewal after two years.
A well-documented, actively trading company with transparent finances makes the renewal process straightforward. For those setting up a Dutch company from abroad, aiming for permanent residency or citizenship after five years requires learning Dutch early for the integration exam, even though DAFT itself does not require language skills initially.