DAFT explained: What ZZP’ers need to know

If you’re a U.S. citizen considering freelancing or starting a business in the Netherlands, the Dutch-American Friendship Treaty (DAFT) could be your golden ticket. This unique treaty simplifies the process of obtaining a residency permit for self-employment, making it easier for Americans to thrive as ZZP’ers (freelancers and sole proprietors) in the Netherlands. 

In this guide, we’ll break down everything you need to know about DAFT, from its benefits to its requirements, and how platforms like Xolo can help make your entrepreneurial journey smoother.

What is DAFT?

The Dutch-American Friendship Treaty (DAFT), established in 1956, fosters economic cooperation between the Netherlands and the United States. For U.S. citizens, it provides a streamlined pathway to start a business in the Netherlands without the bureaucratic hurdles typically associated with residency permits.

Unlike other visa options, DAFT is tailored for entrepreneurs, especially freelancers and sole proprietors, allowing them to register as ZZP’ers and take advantage of the Netherlands' dynamic business environment. Our highlight? DAFT doesn’t require a comprehensive business plan or extensive investment.

In short; DAFT focuses on enabling smooth market entry for entrepreneurs.

Why is DAFT ideal for ZZP’ers

DAFT is particularly attractive for freelancers due to its straightforward requirements and flexibility. It’s a low-cost, supportive program engineered for simplicity:

• Reduced investment requirement: Unlike traditional self-employment visas that require significant capital, DAFT only requires a €4,500 deposit in a Dutch bank account.
• Support for self-employment: DAFT is designed to empower U.S. citizens to work independently, making it ideal for freelancers and small business owners.
• Access to the EU market: With DAFT, U.S. freelancers can tap into the broader European market, opening up greater business opportunities.

Requirements for ZZP’ers under DAFT

For those interested in this powerful program, there are only a few requirements one must meet. To take advantage of DAFT, freelancers should follow these 3 steps:

1. Register as a ZZP’er at the KvK (Chamber of Commerce): This is the first step in establishing your business in the Netherlands. You’ll need to provide a simple business plan and register your trade name.
2. Set up a Dutch bank account: Deposit the required €4,500 in a Dutch bank account to meet the listed investment threshold.
3. Apply for a DAFT visa: Submit your application to the Dutch Immigration and Naturalization Service (IND). Required documents include proof of business registration, a valid passport and evidence of your financial deposit.

Tips for success when using DAFT as a ZZP’er

While DAFT simplifies many aspects of starting a business in the Netherlands, there are some challenges to be aware of:

• Navigating Dutch regulations: It can be tricky when going it alone. Understanding local tax laws, VAT obligations, and business regulations is a complex system for newcomers. 
  This is where Xolo can help!

• Cultural Differences: Adjusting to Dutch business culture and building relationships in a new country requires some time and effort. Connecting with other local and expat freelancers or ZZP’ers can provide valuable support and insight. Find and connect with like-minded peers on forums online, at local meet-ups or in coworking spaces.
  You can also join Xolo’s community of freelancers and solopreneurs from all over the world. 

The Dutch-American Friendship Treaty (DAFT) is a unique opportunity for U.S. freelancers to establish themselves in the Netherlands with fewer barriers and greater flexibility. From accessing the EU market to enjoying simplified residency permits, DAFT opens doors to endless possibilities for ZZP’ers.

Start your freelance journey in the Netherlands with Xolo

Navigating the administrative and financial complexities of freelancing in a foreign country can be daunting. Xolo automates your accounting and VAT reporting, to make it easier to stay compliant with Dutch regulations. You’ll find Xolo to be the one-stop solution for seamless business management, covering everything from invoicing to expense tracking. Our platform is tailored specifically for freelancers to ensure you’re equipped to succeed under DAFT.

Explore the many ways Xolo can support your business under DAFT. Get Started Today!