Collect Payments from US Clients in the Netherlands
One of the biggest perks of the Dutch-American Friendship Treaty (DAFT) is that you can keep working with US clients from the Netherlands.
But actually getting paid? That part requires a bit of planning. Different currencies, bank transfer fees, and tax implications all come into play. We spent our first few months figuring out the most cost-effective way to receive payments from stateside clients, and here's what we learned.
Why It Matters More Than You Think
When you're invoicing in dollars but paying rent in euros, every percentage point in fees and every bad exchange rate adds up fast. On a $5,000 invoice, the difference between a good and bad setup can be €100-200.
And beyond the money, your Dutch tax authority (Belastingdienst) cares about how you receive and report income. Getting your payment flow right from day one saves headaches at tax time. For a broader look at your tax obligations, check out our guide on Dutch taxes for DAFT business owners.
Option 1: Wise (TransferWise) Business
This is what most DAFT entrepreneurs we know use, ourselves included.
Wise gives you local bank details in multiple currencies. Your US clients pay to a US account number (ACH or wire), Wise converts at the mid-market rate, and the money lands in your Dutch bank account.
Costs:
- Account: Free to open
- Conversion fee: ~0.4-0.6% on USD to EUR
- US ACH transfer: Free for the sender
- Wire transfer: ~$5-15 from the sender's bank
Why it works: Your US clients don't need to figure out international wires. They just pay to a US routing number like any other domestic transfer.
Option 2: PayPal Business
PayPal works, but it's expensive. The currency conversion fee is 3-4% on top of their standard 2.9% + €0.30 transaction fee.
If your client insists on PayPal, ask them to send in EUR so you avoid PayPal's conversion rate. You'll still pay the transaction fee, but you'll dodge the worst of the currency markup.
When PayPal makes sense: Small, one-off payments under €500 where convenience matters more than fees. Or clients who refuse to use anything else.
Option 3: Direct Bank Wire (SWIFT)
Your US clients can wire money directly to your Dutch business bank account using SWIFT. This is the traditional method, and it works fine for large, infrequent payments.
Costs:
- Sender's bank fee: $25-50 per wire
- Intermediary bank fee: €10-25 (sometimes)
- Your Dutch bank fee: €5-10 per incoming international wire
- Exchange rate markup: Varies by bank, usually 1-2%
Total cost on a $5,000 payment: Roughly €75-150 in combined fees and rate markup.
For most freelancers and consultants, SWIFT wires are too expensive for regular payments. But for quarterly retainers or large project milestones, they're straightforward.
Option 4: Stripe
If you sell digital products, subscriptions, or run an online business, Stripe works well in the Netherlands. You can accept payments in USD and have Stripe pay out to your Dutch bank account in EUR.
Costs:
- Transaction fee: 2.9% + €0.30 (US cards)
- Currency conversion: 1% on top
- Payout: Free to your Dutch bank
Stripe is registered in the Netherlands and integrates with Dutch accounting software. For more on invoicing requirements in the Netherlands, see our separate guide.
How to Invoice US Clients
A few practical things to get right:
Currency: Invoice in USD or EUR—your choice. Most DAFT entrepreneurs invoice US clients in USD because it's simpler for the client. Your Dutch bookkeeping converts everything to EUR at the exchange rate on the invoice date.
VAT: Services provided to US businesses are generally zero-rated for Dutch VAT (0% BTW). You still include your BTW number on the invoice and note "VAT reverse charged" or "BTW verlegd." This is covered in detail in our VAT registration and invoicing guide.
Payment terms: Standard in the Netherlands is 30 days (netto 30 dagen). US clients are used to Net 30 too, so this works for both sides.
Required invoice elements: Your KVK number, BTW number, business name, and address must appear on every invoice. The Belastingdienst has specific requirements here. See our guide on bookkeeping requirements for your eenmanszaak.
Tax Implications
Income from US clients is taxable in the Netherlands. It doesn't matter where the client is—if you're a Dutch tax resident running a Dutch business, the income is Dutch income.
The good news: the US-Netherlands tax treaty prevents double taxation. You won't pay income tax to both countries on the same money. But you do need to file in both countries.
Pro Tip: Keep a record of the EUR/USD exchange rate on every invoice date. Your accountant will need this for your annual tax return. Most accounting software does this automatically.
For more on how the tax treaty affects your situation, see our post on the US-Netherlands tax treaty.
Our Recommended Setup
After trying different combinations, here's what works for us:
- Wise Business for receiving USD payments from US clients (low fees, great rates)
- Dutch business bank account for EUR invoices and local expenses
- Stripe for any product sales or online payments
- Accounting software that handles multi-currency automatically
This setup keeps our total payment processing costs under 1% for most transactions. Compare that to the 5-7% we'd lose using PayPal for everything.
Frequently Asked Questions
Q: Can I keep a US business bank account and use it for my Dutch business? A: You can maintain a US account, but your DAFT business income should flow through your Dutch business bank account. The IND and Belastingdienst want to see business activity in your Dutch accounts. For more on opening a Dutch bank account, we have a dedicated guide.
Q: Do I need to charge VAT to US clients? A: Generally no. Services to businesses outside the EU are zero-rated (0% BTW). But you must still have a valid BTW number and note it on your invoice.
Q: What if a US client pays me in EUR? A: That works fine. It actually simplifies your bookkeeping since there's no currency conversion to track. The client's bank handles the conversion on their end.
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We're not immigration lawyers—just Americans who did this. Requirements change, so verify with official sources.