If you’re a U.S Citizen wanting to move to the European Union without spending hundreds of thousands to buy yourself in with a Golden Visa program, and/or you can't apply for a nationality through your background (ancestors) there is also another fairly easy way in: through the Netherlands.
The European Union is often (rightly) criticized by fellow forum users, but holding a EU passport or retiring in Europe is still very appealing for Americans, or anyone really. And that's why I'm writing this piece, leaving geopolitical discussions aside.
The Dutch-American Friendship Treaty (DAFT) is often described as an “easy” way in, and compared to most immigration routes, it actually is. Details matter, and here’s how it really works, what the long-term path looks like, and whether you can eventually move to another EU country for tax reasons.
The Dutch-American Friendship Treaty (DAFT) was signed on March 27, 1956 between the Netherlands and the United States.
Its stated goal is to strengthen economic, cultural and commercial ties by making it easier for U.S. citizens to start a business in the Netherlands; in particular, it gives Americans a special self-employed residence permit. So the DAFT is a special treaty that lets U.S. citizens move to the Netherlands by setting up a small business here. In practice, this means:
* You create a Dutch company (usually a sole proprietorship or a BV).
* You invest at least €4,500 into your business, this is an official requirement. Yes, the bar is really that low.
* You apply for a self-employment residence permit under the treaty. This only takes you a couple months at the most. You can apply within the Netherlands.
If approved, you get an initial two-year residence permit. As long as your business is active, you’re registered with the Dutch Chamber of Commerce, and you can show you’re actually generating some income, the permit can be extended typically for another five years. Your spouse or children can also come with you, and they’re allowed to work freely.
What the DAFT does not have is a strict rule that you must earn €2,000 per month. That number gets repeated a lot online but doesn’t appear in the official requirements. What the immigration service cares about is whether your income is real and sufficient, not whether you hit one fixed number every month. So it could be less, but to be fair, living on less than that is not really an option.
The Long Game: Permanent Residency and Dutch Citizenship
Once you’re in, the timeline to settle more permanently is straightforward:
* If you’ve lived in the Netherlands for five years on a valid residence permit (DAFT counts), you can apply for permanent residency.
* After meeting the usual civic integration requirements, the language and culture exam, you can also apply for Dutch nationality, often after the same five-year period.
Once you get permanent residency, you’re no longer tied to running the business you used for your DAFT permit. You can switch jobs, close your company, or start something new without risking your right to stay.
Taxes
Living in the Netherlands means paying Dutch income tax if you’re considered a resident. For Americans, the picture gets more complicated, because the U.S. taxes based on citizenship even if you live abroad.
In practical terms:
* You’ll file Dutch taxes.
* You’ll still file U.S. taxes every year.
* A tax treaty exists to prevent double taxation, and you can usually use credits and exemptions so you’re not paying twice on the same income.
* If you have U.S. retirement accounts or investments, their Dutch tax treatment can be very different, so good tax advice is a must.
Some U.S. expats in the Netherlands qualify for special tax benefits like the 30% ruling but note that this does not come automatically with the DAFT; it applies mainly to highly skilled employees. However it is worth looking into, because it saves you a lot of money. If you earn a decent sum you could potentially file for this ruling and pay 30% (less!) in tax.
A lot of Americans have this idea: move to the Netherlands, stay long enough to get a stable status, then relocate to another EU country with friendlier taxes. After living in the Netherlands legally for five years, you may qualify for EU long-term resident status. This is a type of permanent residency that exists across the EU. With it, you can apply to settle in another EU country under a simplified process.
But a few things you should keep in mind:
* Each country still has its own income requirements.
* You don’t instantly become an EU citizen; your rights are more limited.
* If you spend too long outside the Netherlands, you can lose the status.
* Lower taxes depend entirely on the specific country and your type of income, salary, business, investments, etc.
If your goal is eventually relocating to a cheaper or more tax-friendly EU country (Portugal, Malta, Cyprus, parts of Eastern Europe, etc.), DAFT can be a stepping stone, but not a loophole.
So, Is moving to the Netherlands “easy” for Americans?
It’s easier than most countries, yes. And the requirements aren't steep, at all. If you're an (beginning) entrepreneur and really wanting to move to Europe without paying a lot of money this could be a great option. The DAFT gives U.S. citizens a route that many other nationalities simply don’t have. But it still requires effort: creating a real business, investing money, keeping your finances in order, and navigating two tax systems.
If done correctly, though, it can lead to permanent residency, Dutch citizenship, and potentially the ability to settle in other EU countries later on with all the lifestyle and mobility benefits that come with it.
The European Union is often (rightly) criticized by fellow forum users, but holding a EU passport or retiring in Europe is still very appealing for Americans, or anyone really. And that's why I'm writing this piece, leaving geopolitical discussions aside.
The Dutch-American Friendship Treaty (DAFT) is often described as an “easy” way in, and compared to most immigration routes, it actually is. Details matter, and here’s how it really works, what the long-term path looks like, and whether you can eventually move to another EU country for tax reasons.
The Dutch-American Friendship Treaty (DAFT) was signed on March 27, 1956 between the Netherlands and the United States.
Its stated goal is to strengthen economic, cultural and commercial ties by making it easier for U.S. citizens to start a business in the Netherlands; in particular, it gives Americans a special self-employed residence permit. So the DAFT is a special treaty that lets U.S. citizens move to the Netherlands by setting up a small business here. In practice, this means:
* You create a Dutch company (usually a sole proprietorship or a BV).
* You invest at least €4,500 into your business, this is an official requirement. Yes, the bar is really that low.
* You apply for a self-employment residence permit under the treaty. This only takes you a couple months at the most. You can apply within the Netherlands.
If approved, you get an initial two-year residence permit. As long as your business is active, you’re registered with the Dutch Chamber of Commerce, and you can show you’re actually generating some income, the permit can be extended typically for another five years. Your spouse or children can also come with you, and they’re allowed to work freely.
What the DAFT does not have is a strict rule that you must earn €2,000 per month. That number gets repeated a lot online but doesn’t appear in the official requirements. What the immigration service cares about is whether your income is real and sufficient, not whether you hit one fixed number every month. So it could be less, but to be fair, living on less than that is not really an option.
The Long Game: Permanent Residency and Dutch Citizenship
Once you’re in, the timeline to settle more permanently is straightforward:
* If you’ve lived in the Netherlands for five years on a valid residence permit (DAFT counts), you can apply for permanent residency.
* After meeting the usual civic integration requirements, the language and culture exam, you can also apply for Dutch nationality, often after the same five-year period.
Once you get permanent residency, you’re no longer tied to running the business you used for your DAFT permit. You can switch jobs, close your company, or start something new without risking your right to stay.
Taxes
Living in the Netherlands means paying Dutch income tax if you’re considered a resident. For Americans, the picture gets more complicated, because the U.S. taxes based on citizenship even if you live abroad.
In practical terms:
* You’ll file Dutch taxes.
* You’ll still file U.S. taxes every year.
* A tax treaty exists to prevent double taxation, and you can usually use credits and exemptions so you’re not paying twice on the same income.
* If you have U.S. retirement accounts or investments, their Dutch tax treatment can be very different, so good tax advice is a must.
Some U.S. expats in the Netherlands qualify for special tax benefits like the 30% ruling but note that this does not come automatically with the DAFT; it applies mainly to highly skilled employees. However it is worth looking into, because it saves you a lot of money. If you earn a decent sum you could potentially file for this ruling and pay 30% (less!) in tax.
A lot of Americans have this idea: move to the Netherlands, stay long enough to get a stable status, then relocate to another EU country with friendlier taxes. After living in the Netherlands legally for five years, you may qualify for EU long-term resident status. This is a type of permanent residency that exists across the EU. With it, you can apply to settle in another EU country under a simplified process.
But a few things you should keep in mind:
* Each country still has its own income requirements.
* You don’t instantly become an EU citizen; your rights are more limited.
* If you spend too long outside the Netherlands, you can lose the status.
* Lower taxes depend entirely on the specific country and your type of income, salary, business, investments, etc.
If your goal is eventually relocating to a cheaper or more tax-friendly EU country (Portugal, Malta, Cyprus, parts of Eastern Europe, etc.), DAFT can be a stepping stone, but not a loophole.
So, Is moving to the Netherlands “easy” for Americans?
It’s easier than most countries, yes. And the requirements aren't steep, at all. If you're an (beginning) entrepreneur and really wanting to move to Europe without paying a lot of money this could be a great option. The DAFT gives U.S. citizens a route that many other nationalities simply don’t have. But it still requires effort: creating a real business, investing money, keeping your finances in order, and navigating two tax systems.
If done correctly, though, it can lead to permanent residency, Dutch citizenship, and potentially the ability to settle in other EU countries later on with all the lifestyle and mobility benefits that come with it.
