Consulting for US Companies on DAFT: A Practical Guide
Consulting for US companies is probably the most common business model among Dutch-American Friendship Treaty (DAFT) entrepreneurs. And for good reason—you already have the relationships, you know the market, and US consulting rates are strong against the euro.
We know dozens of DAFT business owners who do exactly this: they live in the Netherlands, run their Dutch eenmanszaak, and provide consulting services to clients back in the States. Design, marketing, software development, business strategy, coaching—the specific field doesn't matter as much as the setup.
Here's how to structure it properly.
Is Consulting for US Clients Allowed Under DAFT?
Absolutely. DAFT requires you to have a registered business in the Netherlands. It doesn't restrict who your clients are or where they're located.
In fact, having US clients is an advantage for DAFT. US consulting rates tend to be higher than Dutch rates, which means stronger revenue numbers on your DAFT renewal. And you're bringing money into the Dutch economy, which the IND views favorably.
The only requirement: your business must be registered in the Netherlands with KVK, and you must operate it from here. For the full registration process, see our KVK registration guide.
Setting Up Your Consulting Business
Business structure: Most consultants use an eenmanszaak (sole proprietorship). Free to register, minimal admin, and you get the zelfstandigenaftrek (self-employed tax deduction) if you work 1,225+ hours per year.
SBI code at KVK: Choose a code that matches your consulting specialty. Common ones:
- 70221: Business and management consulting
- 70222: Financial management consulting
- 62020: IT consulting
- 73111: Advertising agencies (for marketing consultants)
Business bank account: Open a Dutch business account and set up Wise for receiving USD payments. Your US clients pay to a US account number through Wise, and you convert to EUR at the mid-market rate. For more details, see our guide on collecting payments from US clients.
Contracts and Legal Setup
When you were consulting in the US, you might have used a simple Statement of Work. Consulting from the Netherlands adds a few considerations.
Your contract should specify:
- You're an independent contractor, not an employee
- Your business is based in the Netherlands (Dutch law or US law—your choice for governing law)
- Payment terms and currency (USD is standard for US clients)
- Scope of work and deliverables
- Intellectual property ownership
Important for US clients: Some US companies have concerns about hiring international contractors. Common worries include:
- Permanent establishment risk: If a US company has a contractor in the Netherlands, does that create a taxable presence there? Generally no—an independent contractor doesn't create permanent establishment. But the client may want a clause confirming this.
- W-8BEN form: Your US client will likely ask you to complete IRS Form W-8BEN (or W-8BEN-E if you have a BV). This certifies you're a foreign person and exempts your payments from US withholding tax under the US-Netherlands tax treaty.
Pro Tip: Have a template W-8BEN ready to go. US companies request it during vendor onboarding, and it speeds up getting paid. The US-Netherlands tax treaty generally reduces withholding on consulting income to 0%.
Managing Time Zones
The Netherlands is 6 hours ahead of the US East Coast and 9 hours ahead of the West Coast. This is the single biggest operational challenge of consulting for US clients from here.
What works:
- Morning work, afternoon meetings. Do focused work in the morning (European time), take client calls in the afternoon/evening when the US wakes up.
- Set clear availability windows. Tell clients you're available 2:00-7:00 PM CET (8:00 AM-1:00 PM EST). Most US clients appreciate knowing your hours.
- Async communication. Lean into email, Loom videos, and project management tools. Reduce the need for real-time meetings.
- Batch meetings. Group all US calls on 2-3 days per week. The other days are meeting-free, deep-work days.
What doesn't work:
- Trying to match US business hours fully (you'll burn out)
- Taking calls at 11 PM CET for West Coast clients (set boundaries early)
- Not mentioning the time difference until it becomes a problem
What We Wish We Knew: Most US clients don't actually care where you are, as long as you're responsive and deliver quality work. We agonized about telling clients we'd moved. When we finally did, the response was universally: "Cool. Same meeting time work for you?"
Tax Implications
Dutch side: Your consulting income is Dutch business income, taxed in box 1. It doesn't matter that the client is American—you're a Dutch tax resident running a Dutch business.
VAT (BTW): Consulting services provided to US businesses are zero-rated (0% BTW). You include your BTW number on the invoice and note "VAT reverse charged" or "Dienst buiten EU." You still file quarterly BTW returns, but the US income shows up as exempt revenue. For detailed invoicing requirements, see our VAT registration and invoicing guide.
US side: You file US taxes as a US citizen. Use the Foreign Earned Income Exclusion (FEIE) to exclude up to ~$130,000 or the Foreign Tax Credit (FTC) to credit Dutch taxes against US tax. Most consultants use the FTC because Dutch tax rates are higher than US rates, and the credit fully offsets your US liability.
No double taxation: The US-Netherlands tax treaty prevents this. For the full breakdown, see our tax treaty guide.
Self-employment tax: This is tricky. The totalization agreement between the US and the Netherlands means you pay social contributions to only one country. If you're covered by Dutch social insurance (volksverzekeringen), you're generally exempt from US self-employment tax. File IRS Form 8854 or get a Certificate of Coverage from the SVB to prove this.
Keeping Your DAFT Status Solid
The IND wants to see that your business is real and active. Here's what demonstrates that as a consultant:
- Regular invoices: Consistent invoicing shows ongoing business activity
- Business bank account activity: Money flowing in and out
- Client contracts: Written agreements showing professional relationships
- KVK registration current: Address and business details up to date
- €4,500 maintained: Keep at least the required deposit in your Dutch business account
At renewal time, the IND isn't evaluating whether your consulting business is the next big startup. They want to see a legitimate, operating business. Steady consulting income is about as clear-cut as it gets. For more on what the IND checks, see our guide on annual DAFT business requirements.
Frequently Asked Questions
Q: Can I work on-site at a US client's office for part of the year? A: You can travel to the US for client meetings and short-term project work. But if you spend more than ~35 days per year at one client's US location, it could create tax complications (both US state tax nexus and questions about your Dutch tax residency). Keep trips short and varied.
Q: What if a US client wants to hire me as a W-2 employee instead of a contractor? A: This doesn't work well for DAFT. You need to operate your own business, not be someone's employee. If a client insists on W-2, explain that you're an independent contractor operating through your Dutch-registered business. Most companies have a contractor onboarding process.
Q: Do I need professional liability insurance for consulting? A: It's not legally required but strongly recommended. A beroepsaansprakelijkheidsverzekering (professional liability insurance) costs €200-600/year and protects you if a client claims your advice caused them financial harm. See our post on Dutch business insurance for details.
Digital Guide — $99
We're not immigration lawyers—just Americans who did this. Requirements change, so verify with official sources.