Thinking of starting a business in the Netherlands? Here is what older American entrepreneurs need to know about the DAFT visa

_{By Vera Kidjan}

Are you an American retiree dreaming of a new chapter in the Netherlands? Whether you’re planning to teach yoga, open a consultancy, or launch a creative venture, the Dutch American Friendship Treaty (DAFT) offers an opportunity to live and work in the Netherlands as a self-employed entrepreneur.

Take Nancy. She has recently retired after a long career with the U.S. State Department. She finds it difficult to sit still and decides to pursue a new path. She takes yoga classes, earns her teaching certification, and is now eager to share her passion. Nancy dreams of working as a freelance yoga instructor in Amsterdam. She applies for a DAFT residence permit to make this dream a reality. What do we advise Nancy?

Temporary procedure first time DAFT applicants

As of 1 April 2024, the Dutch Immigration Department (IND) has introduced a temporary procedure for first-time residence permit applications under the DAFT and the Dutch-Japanese Trade Treaty. This policy does not apply if you are changing your current Dutch residence permit type to a treaty-based permit. The temporary procedure will remain in effect until April 1, 2026. Around that time, the IND will evaluate the project and decide whether to extend it.

When you, as an American or Japanese entrepreneur, apply for a DAFT residence permit, the IND will not immediately check whether you meet all treaty-specific requirements.

Requirements DAFT permit

The IND will assess general conditions, such as having a valid passport and no criminal record. After you receive your residence permit identity card, you will have six months to register your business with the Dutch Chamber of Commerce, and to invest and demonstrate the required capital of at least €4,500. This must be shown with a business bank statement and a balance sheet drawn up by a financial advisor with a so-called beconnummer (PTIN). If you fail to meet these requirements, your residence permit may be revoked retroactively.

What to do?

We advise Nancy, and other older American entrepreneurs, to submit a complete application from the start, including proof of registration with the Dutch Chamber of Commerce and documentation of her invested capital or an application that clearly shows the seriousness of her business intentions, such as a solid business plan.

Why? In the Netherlands it is more common than in the US to fully retire when you reach pension age. That is why the IND may assess whether an older American entrepreneur is genuinely planning to start and operate a business or is merely looking to retire in the Netherlands.

According to their internal policy, the IND is allowed to request additional proof in such situations. The IND includes a specific note in their DAFT approval letter stating: “In some cases, the IND may still ask for proof up front.” We see this happen frequently in our practice, especially with our older clients.

Therefore, we recommend American entrepreneurs who have reached Dutch pension age, like Nancy, to submit a fully documented application when applying under the DAFT.

If you would like more information or personal advice, please feel free to contact us. We are happy to assist you.