Status as of: November 7, 2026, including changes for 2027 · Reading time approximately 25 minutes
The DAFT visa grants American entrepreneurs a Dutch residence permit if they invest at least €4,500 of their own capital into their own business. Upon initial application, you have 6 months after the decision letter for Chamber of Commerce (KVK) registration and the investment. The real assessment follows at renewal: that is when the IND requests your annual accounts and profit and loss statement [1].
Perhaps you recognize this. The decision letter from the IND is on the table and the six-month period is running. You are hesitating between a sole proprietorship and a BV. Your American tax advisor is asking for your Dutch figures. And the first VAT return is approaching, while you have not yet set up your bookkeeping.
Most explanations about DAFT focus on forms and appointments at the IND. In this blog, we, the tax team at Practical | Excellence in Finance, share the other half of the story: what needs to be correct financially and fiscally. From the opening balance sheet and the choice of legal form to the 30% ruling, the renewal after two years, and the alignment with your US tax return. Because a business you set up now will already fall under new thresholds in 2027, we also outline what changes in 2027. Featuring tables, calculation examples, and a checklist you can use immediately.
The DAFT visa in brief
- What: a residence permit as a self-employed person based on the treaty between the Netherlands and the US dated March 27, 1956 [9].
- Capital: a minimum of €4,500 equity in your business, or €11,250 for an NV [3].
- Term: KVK registration and investment within 6 months of the date of the decision letter [1].
- Fees: €423 for the initial application and €423 for renewal in 2026 [5]; the IND will adjust the amounts again as of January 1, 2027 [6].
- Renewal: the IND requests annual accounts and a profit and loss statement [1]; applications can be submitted from 3 months before expiry [4].
- 30% ruling: only for employees, so via your own BV; from 2027 a maximum of 27%, with a higher salary standard and a cap of €273,000 [15, 19, 20].
- US tax return: your worldwide income remains taxable in the US; foreign accounts over $10,000 must be reported via the FBAR [40, 41].
- Permanent residence: possible after 5 years of uninterrupted residence with a valid permit, subject to conditions [7].
In this blog
- What is the DAFT visa?
- Who is the DAFT visa intended for, and who is it not?
- What does the timeline look like, from application to permanent residence?
- Should you choose a sole proprietorship or a BV for your DAFT visa?
- Can you get the 30% ruling with a DAFT visa?
- Where should the €4,500 appear on your balance sheet?
- What does the IND want to see at the two-year renewal?
- What taxes and administrative obligations do you have as a DAFT entrepreneur?
- What changes in 2027 for DAFT entrepreneurs?
- How does your US tax return align with the Dutch one?
- What does a DAFT start cost in the first year?
- Which mistakes should you avoid from day one?
- How does Practical help you with your DAFT business?
- Frequently asked questions about the DAFT visa
What is the DAFT visa?
The DAFT visa is not a separate visa, but a residence permit for self-employed work. You obtain it based on the Treaty of Friendship, Commerce and Navigation concluded between the Netherlands and the United States on March 27, 1956, in The Hague [9]. The treaty entered into force on December 5, 1957 [10]. DAFT stands for Dutch American Friendship Treaty.
Definition
The DAFT visa is the Dutch residence permit for American citizens who develop and lead their own business in the Netherlands and invest at least €4,500 of their own capital in it. The IND applies its own conditions for this, separate from the standard assessment for self-employed persons [1].
The treaty covers much more than residence, such as trade, shipping, and the protection of investments [9]. For entrepreneurs, one agreement is particularly important: Americans may settle here to develop and lead a business in which they have invested substantial capital [12]. What constitutes ‘substantial’ is determined by Dutch policy. In 1994, the lower limit for a sole proprietorship was f 10,000 [14]. Currently, the IND maintains €4,500 for most business forms [1]. The same route exists for Japanese entrepreneurs via the trade treaty with Japan [1].
The route is rapidly becoming more popular. Up to and including September 2025, 700 Americans received a DAFT permit, compared to about 300 five years earlier. According to IND figures, DAFT applications are almost always granted [44]. This does not mean that everything goes smoothly thereafter. The assessment shifts to a later stage, and that assessment is financial.
Who is the DAFT visa intended for, and who is it not?
The DAFT visa is intended for Americans who operate a business in the Netherlands for their own account and risk. The IND specifies three ways in which you can meet this requirement, in addition to the general conditions that apply to everyone [1].
| Your situation | Fits DAFT? | Explanation |
|---|---|---|
| American nationality and your own business in the Netherlands | Yes | You invest substantial capital, at least €4,500 for most business forms [1] |
| You trade between the Netherlands and the US | Yes | The treaty has a separate route for trade [1] |
| You represent an American company in a key position | Yes | Separate route according to the IND [1] |
| Liberal profession, such as consultant or designer | Usually yes | Not for work for or on behalf of the government or in healthcare [1] |
| Green card, but no American passport | No | The IND requires American (or Japanese) nationality [1] |
| You remain effectively an employee of your American employer | No | DAFT is for your own business; working as a ‘contractor’ without personal risk resembles employment [30] |
Please note
Are you currently employed by an American company and want to continue working for that same employer as a self-employed person? Then the Tax Authorities will look at how you work in practice, not at the contract. Since January 1, 2025, enforcement against false self-employment has resumed [30]. Therefore, build a real business from the start: multiple clients, your own rates, and your own entrepreneurial risk.
What does the timeline look like, from application to permanent residence?
A DAFT trajectory has seven moments when financial matters must be correct. The first permit is valid for a maximum of 2 years [1]. How long a renewal is valid depends on your situation [4].
| Moment | What is happening | What you arrange financially |
|---|---|---|
| Before your move | Choice between sole proprietorship or BV. If you want the 30% ruling, the BV and your employment contract should be ready before your first working day in the Netherlands. | Calculate both legal forms; check the 150-kilometer requirement [15] |
| Application to the IND | Application for residence as a self-employed person based on the treaty; fees €423 in 2026, adjusted as of January 1, 2027 [5, 6] | Budget for the first year, using 2027 amounts |
| Within 6 months after the decision letter | Registration with the KVK (€85.15) and investment of at least €4,500 [1, 35] | Business account in the name of the company, deposit and opening balance sheet, verified by an external expert [2] |
| First quarters | VAT returns, unless you opt for the small business scheme (KOR) [28] | Set up invoices and administration; 7-year record-keeping obligation [29] |
| Year 1 and 2 | Income tax return (sole proprietorship) or corporate tax return (BV) | Maintain capital levels; track hours for the self-employed deduction [27] |
| From 3 months before expiry | Apply for renewal; the IND will not process the application earlier [4] | Annual accounts and profit and loss statement ready [1] |
| After 5 years | Permanent residence if you had a valid permit for 5 consecutive years, always renewed on time, and meet the income requirements [7] | Demonstrate income; arrange civic integration [8] |
Have you already received the decision letter from the IND?
Then the 6-month period is running. We will set up your administration, prepare the opening balance sheet, and ensure that the documents requested by the IND are ready on time.
Should you choose a sole proprietorship or a BV for your DAFT visa?
Both legal forms are possible with a DAFT visa, and the same minimum capital of €4,500 applies to both [3]. The difference lies in tax, liability, administration, and the 30% ruling. You can read more general background in our blog about choosing between a sole proprietorship and a BV.
| Subject | Sole proprietorship | BV |
|---|---|---|
| Incorporation | Registration with the KVK: €85.15 [35] | Notarial deed, according to the KVK €500 to €1,500, plus registration [36] |
| Minimum capital for DAFT | €4,500 [3] | €4,500 [3] |
| Tax on profit | Income tax in Box 1, with entrepreneurial facilities | Corporate tax: 19% up to €200,000, 25.8% above that [23]; unchanged in 2027 [32] |
| Entrepreneurial facilities | 2026: self-employed deduction €1,200 and starter’s deduction €2,123 with at least 1,225 hours [25, 27]; SME profit exemption 12.7% [26]; benefit limited to 37.56% [25]. 2027: self-employed deduction €900 and a proposal to reduce the starter’s deduction to €10 [31] | Not applicable |
| Your own income | The profit is your income | Salary as a director-major shareholder (DGA), minimum customary salary of €58,000 in 2026; the amount for 2027 had not yet been published as of November 7, 2026 [22]. Dividend in Box 2: 24.5% up to €68,843, 31% above that [24]; for 2027 through 2030, a high rate of 29.2% has been proposed [33] |
| 30% ruling | Not possible: you are not an employee [15] | Possible if you are employed by your BV and meet all conditions [15, 21] |
| Liability | Personally liable for business debts [37] | Limited liability [37] |
| Administration | Lighter | Heavier: payroll administration for your DGA salary and separate annual accounts |
Our recommendation
Do not choose based on the tax rate alone. For a DAFT business, three additional questions matter. Can the capital be easily maintained? Do you qualify for the 30% ruling? And how does the US tax authority view your Dutch legal form? You should coordinate the last question with your US advisor; we provide the Dutch figures.
Starting with a sole proprietorship and converting to a BV later is possible. However, by then you will already be living in the Netherlands, and for the 30% ruling, that is usually too late. We explain this below.
Are you starting at the end of 2026 or in 2027? Then calculate the sole proprietorship using the 2027 amounts. If the proposal for the starter’s deduction goes through, a sole proprietorship will yield less in the first few years than the 2026 figures suggest [31].
Can you get the 30% ruling with a DAFT visa?
Yes, but only if you work as an employee, i.e., via your own BV. The first condition of the Tax Authorities is that you are employed by your employer [15]. If you receive a salary from your BV as a director-major shareholder (DGA), the same tax rules apply to you as to other employees [21]. The official name is now the expat scheme. Also read our frequently asked questions about the 30% ruling.
| Condition | What it means for a DAFT entrepreneur |
|---|---|
| Employed | An employment contract with your own BV; it is not possible with a sole proprietorship [15] |
| Specific expertise | A taxable annual salary above €48,013 in 2026, or above €36,497 if you are under 30 and have a master’s degree, always excluding the tax-free allowance [16]. From 2027, a higher standard applies to those who started from 2025: €50,436, indexed annually [18, 19] |
| Recruited from outside the Netherlands | In the 24 months before your first working day, you lived more than 150 kilometers from the Dutch border for more than 16 months [15] |
| Granting decision | You and your BV apply for the scheme together; do so within 4 months of starting, then the scheme applies from your first working day [15] |
| Percentage | Maximum 30% in 2026. From 2027, maximum 27% for those who started in 2024 or later; this change is already law [18, 19] |
| Cap | Allowance over a maximum salary of €262,000 in 2026, so a maximum of €78,600 per year [17, 18]. In 2027, the cap is €273,000; at 27%, the allowance is then a maximum of €73,710 [20] |
Please note
The sequence is decisive. If you move first and only then incorporate a BV, you will already be living in the Netherlands on your first working day. You will then usually no longer meet the 150-kilometer requirement [15]. Therefore, set up the BV and the employment contract before your first working day here.
Hypothetical calculation example
Your BV pays you €70,000 per year, including the allowance. A maximum of 30% of that may be tax-free: €21,000 [17]. Your taxable salary is then €49,000. That is just above the standard of €48,013 [16]. If you increase the allowance or decrease the salary, you could fall below the standard.
The same example in 2027: maximum 27% tax-free is €18,900, your taxable salary becomes €51,100. The standard for 2027 is €50,436 and will still be indexed [19]. If we index that amount with the same increase that the current standard received from 2024 to 2026 (from €46,107 to €48,013), we arrive at around €52,500, even before the indexation for 2027. With €51,100, you would then fall below the standard.
So calculate with the taxable portion, not the gross amount, and for a start in 2027, use the 2027 standard. An allowance lower than the maximum is also permitted. We can calculate in advance how the customary salary of €58,000 [22] and the allowance coincide in your situation. You can read more about the DGA salary in our explanation of the customary salary.
Are you hesitating between a sole proprietorship and a BV, or about the 30% ruling?
We calculate both routes for your situation, using the 2026 and 2027 amounts, including the customary salary and the sequence of incorporation, before you commit to anything at the KVK or the notary.
Where should the €4,500 appear on your balance sheet?
The invested capital must demonstrably be in your business and remain there. Borrowed money does not count. If the capital falls below the minimum for your business form, the IND can revoke the permit [11]. The Council of State confirmed in 2012 that the capital must be maintained [12].
At the start, for a sole proprietorship, the IND requests a business bank statement showing the invested amount and the opening balance sheet. The name of the business and the capital must be visible on the statement. All financial documents must be verified by a chartered accountant, accounting consultant, bookkeeper, or financial advisor [2].
Hypothetical calculation example
Two entrepreneurs start a sole proprietorship with €4,500 and both make €38,000 profit in year 1. The only difference is how much they withdraw for private use, for example, to pay their income tax and rent.
| Item | Entrepreneur A | Entrepreneur B |
|---|---|---|
| Deposit at start | €4,500 | €4,500 |
| Profit in year 1 | €38,000 | €38,000 |
| Private withdrawals in year 1 | €40,000 | €32,000 |
| Equity at end of year 1 | €2,500 | €10,500 |
| Assessment | Below minimum: risk at renewal | Well above minimum |
Entrepreneur A did nothing wrong in his business. He simply withdrew more than he earned. This happens easily with a sole proprietorship because you pay the tax on the profit privately. It works differently with a BV: your salary goes through payroll administration, and equity mainly decreases due to losses or dividends. If the BV suffers a loss in the start-up phase, supplement the equity with a contribution to the shares and not with a loan, as borrowed capital does not count [11].
Exactly how the IND assesses the capital is not stated in detail on the IND website. We therefore advise caution: keep both the equity on the balance sheet and the balance in the business account above €4,500, with a buffer.
What does the IND want to see at the two-year renewal?
At renewal, the IND requests annual accounts and a profit and loss statement. With these, the IND checks whether your business has been active and whether the invested money has remained in the business [1]. The IND does not specify a minimum profit, but the business must have been active.
| What the IND assesses | What evidence | Where it goes wrong |
|---|---|---|
| Was the business active? | Annual accounts and profit and loss statement [1] | Little turnover, or administration that does not align with tax returns |
| Has the capital remained? | Proof of at least €4,500 invested capital, or €11,250 for an NV [3] | Equity below the minimum due to private withdrawals or losses [11] |
| Is it the same type of business? | Annual documents and data in the Trade Register | Switching to an activity that does not count as business operations; in 2008, a renewal was rejected for this reason [13] |
| Are you on time? | Application from 3 months before expiry [4] | Renewing too late; for permanent residence, you must have always renewed on time [7] |
The difference from the initial application is significant. At the start, you had no figures yet and still received the permit. At renewal, your annual documents prove whether you have kept the agreement. Therefore, do not wait until month 21 to start your bookkeeping. Have the year-end closing of year 1 prepared immediately so that it is also usable for the IND.
What taxes and administrative obligations do you have as a DAFT entrepreneur?
With a DAFT visa, you are simply an entrepreneur in the Netherlands, with the same obligations as any other business. These are the topics you will encounter in the first year.
| Subject | What it means | Source |
|---|---|---|
| VAT | You charge VAT and file VAT returns. With a turnover up to €20,000, you can opt for the KOR: then you do not charge VAT, do not file returns, but you also cannot reclaim VAT [28] | Tax Authorities |
| Income tax | For a sole proprietorship; self-employed deduction only if you spend at least 1,225 hours on your business [27] | Tax Authorities |
| Corporate tax | For a BV: 19% up to €200,000 profit [23] | Tax Authorities |
| Payroll taxes | For a BV: the BV withholds payroll taxes from your DGA salary [21] | Tax Authorities |
| Record-keeping obligation | Basic data must be kept for 7 years, data on real estate for 10 years; also track your hours [29] | Tax Authorities |
| Employment relationship | Work demonstrably independently; since 2025, enforcement against false self-employment has resumed [30] | Ondernemersplein |
| Social security | If you work in the Netherlands as a self-employed person with profit from a Dutch business, you are generally insured here [43]. The US is a treaty country for social security [42] | SVB |
Your administration is more than an obligation. It is the evidence for the IND, the basis for your Dutch tax returns, and the source for your US tax return. We work with Nmbrs Accounting (formerly Yuki) and Exact Online for this, so you always have up-to-date figures.
What changes in 2027 for DAFT entrepreneurs?
A DAFT business you set up now will already fall under different amounts in 2027. Some of these are fixed, while others are still proposals. The House of Representatives will vote on the 2027 Tax Plan package on November 12, 2026 [34]; then it is the Senate’s turn. This is the status as of November 7, 2026.
| Subject | 2026 | 2027 | Status |
|---|---|---|---|
| 30% ruling: maximum allowance | 30% | 27% for those who started in 2024 or later | Law [18, 19] |
| 30% ruling: salary standard for starts from 2025 | €48,013 | €50,436, still to be indexed for 2027 | Law; 2027 amount to follow [19] |
| 30% ruling: cap (WNT standard) | €262,000 | €273,000 | Established [20] |
| Self-employed deduction | €1,200 | €900 | Announced [31] |
| Starter’s deduction | €2,123 | €10; abolished from 2028 | Proposal [31] |
| Rate for second bracket Box 1 (limit for entrepreneurial deduction) | 37.56% | 38.16% | Proposal [31] |
| Corporate tax | 19% and 25.8% | 19% and 25.8% | Unchanged [32] |
| Box 2, high rate | 31% | 29.2% proposed for 2027 through 2030 | Proposal [33] |
| Customary salary DGA | €58,000 | Not yet published | Not yet known [22] |
| IND fees initial application | €423 | Adjusted as of January 1 | Not yet known [6] |
| KVK registration | €85.15 | Adjusted annually for inflation | Not yet known [35] |
Our recommendation
Are you starting at the end of 2026 or in 2027? Then calculate your legal form and any 30% ruling using the 2027 amounts, not the current ones. Especially the nearly vanished starter’s deduction and the higher salary standard can change the outcome. We will update this blog as soon as the amounts for 2027 are final.
How does your US tax return align with the Dutch one?
As an American citizen, you remain taxable in the US on your worldwide income, regardless of where you live. Benefits such as the foreign earned income exclusion and the foreign tax credit are only available if you file a US tax return [40]. If you live in the Netherlands, you often file tax returns twice [38].
- No double taxation: The Netherlands and the US have a tax treaty [39]. Usually, the US offsets the tax you paid in the Netherlands [38].
- Differences between systems: the offset can be problematic if something is exempt in the Netherlands but not in the US, or vice versa [38]. For example, an allowance that is tax-free in the Netherlands.
- FBAR: if you have authority over foreign accounts with a combined total of more than $10,000 at any point in the year, you must report them to the US Department of the Treasury [41]. The business account of your Dutch company may also fall under this.
- Existing US structure: if you are bringing an LLC or corporation with you, discuss with your US advisor before starting how it relates to your Dutch business.
Practical | Excellence in Finance handles the Dutch side: bookkeeping, tax returns, and the 30% ruling. For the US tax return (federal and state), we coordinate with specialized US tax advisors so that both returns are based on the same figures.
What does a DAFT start cost in the first year?
The fixed government costs of a DAFT start are low. The largest items are the capital, which remains yours, and the guidance you choose.
| Cost item | Amount | Explanation |
|---|---|---|
| Fees initial application | €423 (2026) | Also €423 for renewal; as of January 1, 2027, the IND will adjust the amounts based on collective labor agreement wages [5, 6] |
| KVK registration | €85.15 (2026) | One-time and tax-deductible; KVK adjusts the amount every year for inflation [35] |
| Notary for a BV | €500 to €1,500 | Indication from the KVK [36] |
| Start-up capital | Minimum €4,500 | Remains in your business; €11,250 for an NV [3] |
| Bookkeeping and annual accounts | Depending on size | Request a fixed price agreement in advance |
| US tax return | Depending on advisor | Required annually to receive benefits like the foreign tax credit [40] |
Which mistakes should you avoid from day one?
This checklist follows the rules above. Use it in every introductory meeting, including the one with us.
- Choose your legal form before your move and calculate both variants; for a start from 2027, use the 2027 amounts.
- Do you want the 30% ruling? Incorporate the BV and sign your employment contract before your first working day in the Netherlands.
- Put the date of the decision letter and the 6-month deadline directly in your calendar.
- Open a business account in the name of the company and deposit the capital as your own money, not as a loan.
- Have the opening balance sheet prepared and the financial documents verified by a qualified external expert.
- Make a conscious choice whether or not to opt for the KOR, and note why.
- Track your hours and keep your administration for 7 years.
- Build a buffer so that your equity never falls below €4,500.
- Work for multiple clients and document that you work independently.
- Have your Dutch and US tax returns aligned, including the FBAR.
- Put the renewal in your calendar: submit from 3 months before expiry, with annual documents ready.
You don’t have to figure it out alone. We will walk through the list with you step by step.
Would you prefer to brainstorm directly with a tax specialist about your DAFT business?
Are you hesitating about your legal form, the 30% ruling, or the alignment with your US tax return? Call or WhatsApp us. Hans will look at your situation and tell you honestly what is needed.
Your contact person for tax advice
Hans de Groot
Tax Advisor at Practical | Excellence in Finance
Call directly: +31 (0)88 011 40 00
How does Practical help you with your DAFT business?
Practical | Excellence in Finance gives entrepreneurs the financial power of a complete team of specialists, without them having to build that expertise themselves. For a DAFT business, we combine bookkeeping, tax advice, payroll administration, and the 30% ruling in one team. For tax questions, you can contact our tax advisor Hans de Groot. With us, you have one fixed point of contact who knows your file, with a whole team behind them.
| Phase | What Practical does for you |
|---|---|
| Before your move | Calculations for sole proprietorship and bv, the 30% ruling test, and the correct sequence of bv incorporation, employment contract, and first working day |
| The start | Opening balance sheet and financial substantiation for the IND; VAT registration and administration in Nmbrs Accounting or Exact Online |
| Every year | VAT returns, payroll administration for your DGA salary including processing of the 30% ruling, and your personal or corporate income tax return |
| The renewal | Annual accounts and profit and loss account, plus a capital check before you submit the application |
| International | Coordination with US tax advisors regarding your federal and state returns |
We are also clear about what we do not do. You submit the residence application itself to the IND; we provide the financial and tax substantiation. For legal questions regarding your right of residence, we will refer you to a specialist. Furthermore, Practical does not perform statutory audits.
- Our clients consistently rate us with a 9 or higher annually.
- Our team includes AA and RB expertise, and Practical is a member of the NOAB.
- In Nmbrs Accounting, we achieve an average of more than 90% automation throughout the year, ensuring your figures are up to date.
- You can find us in Amsterdam, Rotterdam, Eindhoven, and the Utrecht region, and we work digitally throughout the Netherlands.
Frequently asked questions about the DAFT visa
What is the DAFT visa?
The DAFT visa is a Dutch residence permit for self-employed individuals, available to US citizens. It is based on the Treaty of Friendship, Commerce and Navigation between the Netherlands and the US of March 27, 1956. You must invest a minimum of €4,500 of your own capital into your own business [1, 9].
How much money do I need for a DAFT visa?
You need a minimum of €4,500 in equity; for an nv, this is €11,250 [3]. Additionally, in 2026, you will pay €423 in government fees and €85.15 for the KVK registration [5, 35]; both amounts will be adjusted as of 2027 [6]. Borrowed money does not count as capital [11].
Am I allowed to spend the €4,500?
You may use the money for your business, but the capital must remain at the required level. If it falls below the minimum, the IND may revoke the permit [11, 12]. Therefore, maintain a buffer, both on the balance sheet and in the business bank account.
Can I work as an employee with a DAFT visa?
The DAFT visa is intended for work within your own business, not for employment with an employer [1]. If you effectively work as an employee for a single client, you also face the tax risk of false self-employment [30].
Can I obtain the 30% ruling with a DAFT visa?
Yes, if you are employed by your own bv and meet all conditions [15, 21]. This is not possible with a sole proprietorship. Incorporate the bv before your first working day in the Netherlands; otherwise, you usually will no longer meet the 150-kilometer requirement. From 2027, the reimbursement is a maximum of 27% and a higher salary norm applies [19].
Is a sole proprietorship or a bv better for DAFT?
That depends on your profit, your risk, and the 30% ruling. A sole proprietorship is cheaper and simpler; a bv provides limited liability and access to the 30% ruling, but requires a DGA salary of at least €58,000 in 2026 [22, 37]. In 2027, the self-employed deduction will decrease to €900, and it has been proposed to reduce the starter’s deduction to €10 [31].
What does the IND check during renewal, and when should I apply for it?
The IND requests annual accounts and a profit and loss account to assess whether your company has been active and whether the invested money has remained in the company [1]. You apply for the renewal in the last 3 months before your permit expires; the IND will not process earlier applications [4]. Renewing too late can interrupt your path to permanent residency [7].
What changes in 2027 for DAFT entrepreneurs?
In 2027, the main changes concern the tax amounts related to your business. The 30% ruling will become a maximum of 27%, with a higher salary norm and a cap of €273,000 [19, 20]. For a sole proprietorship, the self-employed deduction will drop to €900, and it is proposed to reduce the starter’s deduction to €10 [31]. The IND government fees and the customary salary for 2027 were not yet known as of November 7, 2026 [6, 22].
As an American, do I also have to file a tax return in the US?
Yes, as a US citizen, you remain taxable in the US on your worldwide income, regardless of where you live [40]. If you have foreign accounts with a combined total of more than $10,000, you must also file an FBAR report [41].
Will I then pay double tax?
Usually not, as the Netherlands and the US have a tax treaty and the US generally offsets the Dutch tax [38, 39]. Due to differences between the systems, the offset can sometimes be problematic; therefore, ensure both returns are coordinated.
After how many years can I apply for permanent residency?
After 5 years of uninterrupted residence with a valid permit, provided you always renewed on time, continued to meet the conditions, and meet the income requirements [7]. For EU long-term resident status, a civic integration requirement also applies [8].
How does Practical help with a DAFT business?
Practical handles the financial and tax aspects: opening balance sheet, bookkeeping, VAT, tax returns, DGA salary, the 30% ruling, and the annual documents for renewal. For the US tax return, we coordinate with specialized US advisors.
Start your DAFT business with an administration that withstands the renewal process
Schedule a free introductory meeting of approximately one hour with our partner Menke Neurink. This can be via Teams or at our office in Amsterdam or Maartensdijk. Menke will first listen to your situation and then demonstrate how we manage your bookkeeping, taxes, and, where necessary, the 30% ruling for you.
Select “Online with Management” in the calendar. Prefer to call or email? +31 (0)88 011 40 00 or info@practical.nl.
Sources
- IND: Residence permit for self-employed person, conditions Dutch-American Friendship Treaty (accessed November 7, 2026)
- IND: Form 7024, application for residence purpose work as a self-employed person (evidence for treaty entrepreneur) (2026 version)
- IND: Form 7533, renewal of residence permit (capital €4,500 and €11,250 for nv) (2026 version)
- IND: Form 7035, renewal of residence permit for work-related residence purposes (2026 version)
- IND: Government fees: costs of an application (2026 rates)
- IND: 2026 government fees and standard amounts announced (annual adjustment as of January 1)
- IND: Permanent residence permit
- IND: EU long-term resident permit
- Treaty Series 1956, no. 40: Treaty of Friendship, Commerce and Navigation between the Netherlands and the US
- Treaty Series 1957, no. 234: approval and entry into force of the treaty
- Government Gazette 2015, no. 32191: amendment to the Aliens Circular, substantial capital
- Council of State: ruling 201103114/1/A1 regarding substantial capital (August 16, 2012)
- Ruling 200805299: rejection of renewal due to changed activity
- Aliens Circular 1994, Chapter B9: the Dutch-American Friendship Treaty (historical)
- Tax Administration: Can I apply for the expat ruling (30% ruling) if I come to work in the Netherlands?
- Tax Administration: Expertise requirement for expat ruling, 2026 salary norms
- Tax Administration: Content of the expat ruling
- National Government: Expat ruling for highly skilled foreign workers (reduction to 27% in 2027)
- Ondernemersplein (RVO): Reimbursement for 30% ruling for expats to become 27% (income norm from 2027)
- Government Gazette 2026, no. 29611: general maximum remuneration WNT 2027 (€273,000)
- Tax Administration: Private limited company (bv) and consequences for your taxes
- Tax Administration: Wages and substantial interest (customary salary 2026)
- Tax Administration: Corporate income tax rates
- Tax Administration: Box 2: explanation and rates
- Tax Administration: Self-employed deduction 2026
- Tax Administration: SME profit exemption 2026
- Tax Administration: Hours criterion
- Tax Administration: Small Business Scheme (KOR)
- Tax Administration: How long must you keep records?
- Ondernemersplein: Preventing false self-employment
- KVK: 2027 Tax plans for sole proprietorship, vof, partnership, or cv (updated September 15, 2026)
- KVK: Your bv and Budget Day: these are the tax plans for 2027
- De Zaak: Box 2 dossier (proposal for high rate of 29.2% from 2027 through 2030) (checked October 22, 2026)
- House of Representatives: bill 37053 and planning for the vote on the 2027 Tax Plan package (November 12, 2026)
- KVK: Registration fee
- KVK: Registering your company or organization (notary costs)
- Ondernemersplein KVK: Getting started as a freelancer (liability)
- Tax Administration: Exchange of financial data with the United States
- Wetten.overheid.nl: Netherlands–United States Tax Treaty (1992)
- IRS: U.S. citizens and resident aliens abroad
- IRS: U.S. citizens and residents abroad: filing requirements (FBAR)
- SVB: Overview of social security treaty countries
- SVB: When are you insured (self-employed in the Netherlands)
- NOS: Netherlands a popular destination among Americans wishing to leave the US (December 2025)
This blog provides general information based on laws and regulations and the sources as known on November 7, 2026. Amounts for 2027 that are still proposals may change; we will update this blog as soon as they are finalized. It does not constitute personal tax or legal advice. The IND decides on your right of residence.