Co-Founding a DAFT Business with a Partner: A Guide
Maybe you and a friend are both moving to the Netherlands under the Dutch-American Friendship Treaty (DAFT). Maybe you want to start a business with your spouse. Or maybe you've met a potential business partner here and want to team up.
Good news: you can co-found a business under DAFT. But the structure matters, and there are some quirks specific to DAFT that you need to understand before signing anything.
Can Two DAFT Visa Holders Start a Business Together?
Yes. Two (or more) US citizens on DAFT can start a business together. Each person maintains their own DAFT residence permit independently, and you register a joint business.
The key thing to understand: each DAFT visa holder must demonstrate their own business activity and their own €4,500 investment. You can't pool €9,000 into one account and call it done. Each partner needs €4,500 in their name or clearly allocated to their share of the business.
For details on the deposit requirement, see our guide on the DAFT €4,500 deposit explained.
Business Structures for Co-Founders
Here are the most common options:
VOF (Vennootschap Onder Firma) — General Partnership
The VOF is the most common structure for two self-employed people starting a business together. Think of it like a general partnership in the US.
How it works:
- Two or more partners share profits and losses
- Each partner is personally liable (including for each other's business debts)
- Registered at KVK as a single entity
- Each partner files their own income tax return with their share of profits
Costs to set up:
- KVK registration: Free
- Partnership agreement (drawn up by a notary or lawyer): €500-1,500
- Optional: notarial deed for formal registration: €300-500
Tax treatment: Each partner reports their share of the profit (as defined in the partnership agreement) on their personal income tax return. Both partners can claim the zelfstandigenaftrek (self-employed deduction) of roughly €3,750 if they meet the hours requirement (1,225 hours per year).
Pro Tip: Always get a written partnership agreement, even if your co-founder is your best friend or your spouse. Cover profit/loss sharing, decision-making authority, what happens if someone wants to leave, and dispute resolution. A €1,000 agreement now prevents a €50,000 legal fight later.
Two Separate Eenmanszaken (Sole Proprietorships)
An alternative: each person registers their own eenmanszaak and you collaborate informally or through a contract.
When this makes sense:
- You work on projects together but maintain separate client relationships
- You want to keep finances completely independent
- You're testing the partnership before formalizing it
How it works:
- Each person has their own KVK registration
- Each person invoices clients independently
- You create a collaboration agreement for shared projects
- Each person maintains their own bookkeeping
Advantages: Complete independence. If the partnership doesn't work out, there's nothing to dissolve. No shared liability.
Disadvantages: You can't present yourselves as a single business to clients. Shared expenses and joint projects require careful documentation.
For more on choosing the right structure, see our guide on Dutch business structures.
BV (Private Limited Company)
For more serious ventures with significant revenue or outside investment, a BV provides liability protection and a more professional structure.
How it works:
- Separate legal entity from the founders
- Shareholders (you and your co-founder) own shares
- Directors manage the company
- Limited liability—personal assets generally protected
Costs to set up:
- Notarial deed: €500-1,000
- Legal/advisory fees: €1,500-3,000
- Share capital: €0.01 minimum (no longer requires €18,000)
- Annual accounting: €2,000-5,000
When to consider a BV:
- Annual revenue exceeding ~€100,000-150,000
- You want to pay yourself a salary (DGA salary requirement)
- Outside investors or partners who aren't on DAFT
- Liability protection is important for your type of business
Most DAFT co-founders start with a VOF and convert to a BV later if the business grows significantly.
Co-Founding with Your Spouse
Many DAFT couples start a business together. If both spouses are on DAFT (the primary applicant and a dependent partner who also applies), you have a few options:
Option A: VOF together. Both spouses are partners. Both meet the DAFT requirement of having a business. Both claim the zelfstandigenaftrek on their tax returns.
Option B: One eenmanszaak, one as "meewerkend partner." One spouse runs the business, the other is a "collaborating partner." The working partner can claim a meewerkaftrek (spousal collaboration deduction) of 1.25-4% of the profit. This is simpler but provides fewer tax benefits.
Option C: Separate eenmanszaken. Each spouse runs their own business. Maximum independence and flexibility, but no shared business identity.
What We Wish We Knew: If both spouses want to work in the same business, the VOF is usually the best tax outcome. Two zelfstandigenaftrek deductions (roughly €7,500 total) are worth more than one eenmanszaak with meewerkaftrek. Talk to a Dutch accountant before deciding.
DAFT-Specific Considerations for Co-Founders
Independent visa status. Each DAFT visa holder's permit is independent. If one partner's DAFT is not renewed, the other's is unaffected (assuming the remaining partner's business still meets requirements).
Separate financial proof. At renewal, each partner must show their business is viable. If you have a VOF, be prepared to show how profits are split and that each partner is actively working in the business.
Business plan alignment. If you applied for DAFT with a specific business plan, your actual business activities should be consistent with what you told the IND. A VOF doesn't change this requirement. For more on what the IND expects, see our post on annual requirements for your DAFT business.
Hours requirement. For the zelfstandigenaftrek (self-employed deduction), each partner needs to work at least 1,225 hours per year in the business. Track your hours from day one.
What If Your Co-Founder Isn't on DAFT?
You can start a business with someone who isn't a US citizen or isn't on DAFT—a Dutch person, an EU citizen, or someone on a different visa.
VOF: Your non-DAFT partner just needs to be legally allowed to work in the Netherlands.
BV: Shareholders don't need work permits. Directors who are also employees do need work authorization, but EU/EEA citizens have this automatically.
Important for your DAFT renewal: The IND assesses your business activity and investment, not your partner's. Make sure your 50% (or whatever share) clearly demonstrates sufficient activity and investment.
Frequently Asked Questions
Q: Can I co-found a business with someone in the US who isn't moving? A: You can have a US-based business partner, but for DAFT purposes, your business must be registered and operating in the Netherlands. A silent US partner in a BV is possible but complex. Your Dutch KVK registration must reflect the actual business structure.
Q: How do we split the €4,500 DAFT deposit in a VOF? A: Each DAFT visa holder needs their own €4,500. In a VOF with two DAFT partners, that's €9,000 total in the business bank account. The IND checks each person's investment separately.
Q: What happens to the VOF if my co-founder leaves the Netherlands? A: You can convert the VOF to an eenmanszaak (sole proprietorship) or find a new partner. You'll need to update your KVK registration and inform the Belastingdienst. Your DAFT permit is unaffected as long as your business continues.
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We're not immigration lawyers—just Americans who did this. Requirements change, so verify with official sources.