What Do You Need to Renew a DAFT Visa?
The Immigration and Naturalisation Service (IND) assesses whether a business has been genuinely active. Applicants should provide their financial records to the IND when it comes time for renewal. These include, but are not limited to annual accounts, balance sheets, income statements, business bank statements and, if applicable, articles of incorporation. Client contracts, invoices and payment records can also help demonstrate that the business is legitimately operating. The IND has not published a standalone definition of a legitimate DAFT business. In practice, though, it mostly means genuine business activity, solid financial records and compliance with applicable rules, such as registering with the KVK.
One of the most important requirements is maintaining the initial business investment of at least €4,500. Those renewing their DAFT visa should be able to prove that the required capital remains invested in the business and has not dipped below this threshold.
Further, those applying for a renewal must maintain their main homes in the Netherlands. Temporary trips abroad for holidays, business or family visits are permitted. However, extended absences may raise questions about whether the Netherlands is actually the applicant’s primary residence.
Finally, should the DAFT visa extension be approved, applicant may need to attend an in-person appoint at the nearest IND office to collect biometrics. These appointments can take place in IND offices in The Hague, Amsterdam or Rotterdam.
Is There a Minimum Income Requirement for DAFT?
DAFT does not use the same rigorous point-based assessment which standard self-employed residents must endure. The DAFT requirements focus more on the qualifying business and the required investment rather than a specific income threshold.
There is no set minimum income required. Nevertheless, financial records matter. Entrepreneurs should be able to explain their business activities and financial position. A freelancer with modest earnings but well-maintained accounts will find themselves in a better position than someone who registered a business but never began operating. A start-up could incur an overall financial loss and still qualify for a visa extension.
How Long Is a DAFT Extension Valid?
The initial DAFT residence permit is generally valid for two years. If the extension is approved, the following permits are typically valid for five years. There is no limit on how many times the visa can be renewed.
It is advised that applicants submit their application three months before their residency expires, which is as soon as the IND permits. The IND has a standard DAFT visa-renewal processing period of 90 days. Delays should be expected if additional information is required. This means that some people will not receive their renewed residence card before the current one expires.
Prepare for Your DAFT Renewal Early
The best way to be prepared is by maintaining good records from the beginning. We can help. At Sanders US Tax Services, we help Americans navigate the U.S. and Dutch tax obligations that come with running a business in the Netherlands. Understanding those obligations early can help maintain accurate records, avoid tax surprises and insure U.S. tax compliance.
Kristina Thomas
Originally from Indiana, Kristina has lived in the Netherlands for 10 years. She's a tax senior at our Rotterdam office. Kristina knows everything there is to know about moving to the Netherlands under the DAFT agreement.
Cristiana Niegel
Sunitha Uthappa
Sunitha lives in The Hague and is a tax manager at our Rotterdam office. She specializes in the preparation of U.S. individual income tax returns.
DAFT FAQ's
The Dutch American Friendship Treaty provides a route for eligible U.S. citizens to live in the Netherlands as entrepreneurs or self-employed professionals. Commonly called the “DAFT visa,” it involves applying for a Dutch residence permit under the treaty’s conditions.
DAFT is available to U.S. citizens who meet the applicable immigration requirements and carry out qualifying business activities in the Netherlands. Applicants generally establish and operate their own business.
For most business structures, the minimum DAFT investment is €4,500. This is capital invested in your business, separate from application fees and living expenses. When renewing your permit, the IND checks that the business has been active and the required capital has remained invested.
Your partner and minor children may apply for residence permits to join you, subject to the relevant family immigration requirements. A partner with the appropriate family residence permit can generally work in the Netherlands without an employer obtaining a separate work permit.
Yes, if you meet the applicable U.S. filing requirements. U.S. citizens remain subject to U.S. tax rules on worldwide income, including profits from a Dutch business. Moving under DAFT does not end your U.S. tax obligations, even if you also file a Dutch tax return.
DAFT does not provide a special income tax exemption. If you become a Dutch tax resident, you generally report your worldwide income on your Dutch income tax return. This can include Dutch business profits and income from abroad, although treaty provisions and double taxation relief may affect the final tax liability.
Not necessarily. Although both countries may require you to report the same income, foreign tax credits, treaty provisions, and other relief can reduce or eliminate double taxation. Eligible taxpayers may also claim the U.S. Foreign Earned Income Exclusion. The appropriate approach depends on your circumstances; relief is not automatic.
Under the U.S.–Netherlands Social Security agreement, self-employed individuals residing in the Netherlands are generally assigned Dutch social security coverage. A Dutch Certificate of Coverage establishes the exemption from U.S. self-employment tax. The Foreign Earned Income Exclusion itself does not eliminate self-employment tax.
Yes. Sanders US Tax Services prepares both U.S. and Dutch tax returns for Americans living in the Netherlands, including self-employed individuals who move under DAFT. Our team includes native English and Dutch speakers and a physical office in the Netherlands. We can help you understand your obligations and coordinate your tax filings in both countries. Please note, we do not provide Dutch accounting and bookkeeping services. We work with selected Dutch accountants for the preparation of your business' income statement and balance sheet, which we'll use for the preparation of your Dutch individual income tax return.