Maintaining Your DAFT Business: Annual Requirements
Our first year with DAFT, we almost missed a critical deadline. We didn't know we had to file an annual report with KVK.
Nobody told us. It wasn't in our approval letter. We found out by accident when another American mentioned it in a Facebook group.
We filed two days before the deadline. Close call.
Here's what's actually required each year to maintain your DAFT business and residence permit.
The Core Requirement: Active Business
To maintain your DAFT residence permit, you must maintain an "active business."
What the IND looks for:
- Invoices to clients
- Business expenses
- Bank account activity
- Evidence of actual work
What they're NOT looking for:
- Specific revenue amount
- Profit
- Number of clients
- Growth targets
You need to be actually running a business, not just maintaining a registration.
Annual Requirements
KVK Annual Filing
What: Confirm to the Chamber of Commerce that your business is still active.
Deadline: Within 8 days of your financial year end (usually January 8 for calendar year businesses).
How: Online through kvk.nl with eHerkenning login.
Cost: Free.
If you miss it: KVK sends reminders, then can eventually deregister your business—which could affect your residence permit.
We set a calendar reminder for December 15 and file before year-end.
Dutch Tax Return
What: Annual income tax return (aangifte) reporting business income and expenses.
Deadline: May 1 (extension available to September 1).
How: Online through Belastingdienst or with an accountant.
Cost: Free to file yourself, or €400-800 with an accountant.
We hire an accountant and file in April.
US Tax Return
What: US federal return reporting worldwide income (yes, even living abroad).
Deadline: April 15, with automatic extension to June 15 for expats.
Cost: Free to file yourself, or $600-1,200 with an expat tax accountant.
For more on US taxes, see US Taxes While Living in Netherlands.
Maintain Business Activity
What it means: Keep working, keep invoicing, keep your business operating.
How to prove: Invoices, bank statements, business expenses, client contracts.
This is ongoing, not once a year. It's your job.
What "Active Business" Actually Looks Like
There are no official minimum income requirements.
The IND wants to see that your business is actually operating—not that you're hitting specific revenue targets. One low-income year won't disqualify you. But extended periods of no income at all might raise questions at renewal.
Our take: aim for enough income to support yourself. If you're making €20,000-30,000+, you're probably fine.
Record Keeping
Keep these organized by year—you might need them for residence permit renewal:
- All invoices sent to clients
- Business bank statements
- Contracts and agreements
- Business expense receipts
- Tax returns (US and Dutch)
Retention period: at least 7 years.
We use QuickBooks for invoicing and expense tracking, and keep everything in yearly Google Drive folders.
Stay Compliant With Your DAFT Business
Go at Your Own Pace
Templates, checklists, and a step-by-step timeline for your entire DAFT move—the practical toolkit we built from our own experience.
- Complete compliance checklist
- Deadline calendar and reminders
- Or book a consultation for specific questions
Talk Through Your Situation
Have specific questions? Unusual circumstances? Or just want to hear from someone who did this? Let's get on a call.
- Complete compliance checklist
- Deadline calendar and reminders
- Or book a consultation for specific questions
Residence Permit Renewal
Every 2-5 years, you'll renew your residence permit. The IND will check:
- Is your business still active?
- Are you actually working?
- Have you filed taxes?
- Is income reasonable for your business type?
For our first renewal, we provided 2 years of tax returns, bank statements, and sample invoices. Approved without issues.
See DAFT Residence Permit Renewal for the full process.
Common Mistakes
Missing KVK filing: Set multiple calendar reminders. File early.
Not keeping records: Use accounting software. Save everything.
Letting business go inactive: Keep working. Registration without activity isn't enough.
Not filing taxes: Penalties, interest, and potential residence permit issues. File on time.
Annual Costs
Required:
- Business bank account: €60-180/year
- Accounting software: €120-360/year
- Tax preparation: €1,000-2,000/year (Dutch + US accountants)
Total minimum: ~€1,200-2,500/year
Optional but common: business insurance, professional development, marketing—adds another €1,000-2,000/year.
The Bottom Line
Annual requirements:
- KVK filing (January 8)
- Dutch tax return (May 1)
- US tax return (June 15)
- Maintain active business (ongoing)
What we do:
- Set calendar reminders for all deadlines
- Hire accountants for taxes
- Keep detailed records
- Actually run our business
The system is straightforward if you stay organized. The detailed compliance checklist and deadline calendar are in our guide.
Digital Guide — $199
We're not immigration lawyers—just Americans who did this. Requirements change, so verify with official sources.