Wise Business Account Setup for DAFT Entrepreneurs
If there's one tool that nearly every Dutch-American Friendship Treaty (DAFT) entrepreneur we've talked to uses, it's Wise Business (formerly TransferWise).
When your clients are in the US but your expenses are in euros, you need a way to move money between currencies without losing a chunk to bank fees. Wise fills that gap better than any traditional bank we've found.
Here's how to set it up and get the most out of it for your DAFT business.
Why Wise Business Works for DAFT
Most DAFT entrepreneurs have income in USD and expenses in EUR. Traditional banks charge 2-3% markups on currency conversion, plus wire fees on both ends.
Wise charges 0.4-0.6% for USD to EUR conversion and uses the mid-market exchange rate—the one you see on Google. No markup, no hidden fees. On a $10,000 transfer, that's roughly €40-60 instead of €200-300 through a traditional bank.
Beyond the rates, Wise gives you local bank details in multiple currencies. Your US clients see a regular US routing number and account number. They don't need to figure out SWIFT codes or IBAN numbers.
How to Open a Wise Business Account
You can sign up before or after arriving in the Netherlands, but you'll need your KVK registration to fully verify the business account.
Step 1: Sign up at wise.com/business
Create your account with your personal details. You'll need your passport and a selfie for identity verification.
Step 2: Register your business
Enter your KVK number, business name, and address. Wise pulls your registration details from KVK automatically.
Step 3: Verify your identity
Upload your passport and take a selfie. Verification usually takes 1-2 business days.
Step 4: Add your Dutch bank account
Link your Dutch business bank account for EUR payouts. This is where you'll transfer money for rent, taxes, and local expenses.
Total time: About 15 minutes to apply, 1-3 days for approval.
Cost: Free to open. No monthly fees. You only pay when you convert or send money.
Setting Up Multi-Currency Balances
This is where Wise really shines for DAFT businesses.
Open balances in USD and EUR (and GBP, AUD, or whatever currencies your clients use). Each balance comes with its own local bank details.
Your USD balance gives you:
- US routing number and account number
- Clients pay via ACH (free) or wire ($5-15)
- Money sits in USD until you convert
Your EUR balance gives you:
- IBAN and BIC (same as any European bank)
- Receive SEPA transfers from Dutch/EU clients
- Pay EUR expenses directly
Pro Tip: Don't convert all your USD to EUR immediately. Convert only what you need for upcoming expenses. If you expect the exchange rate to improve, hold your USD balance. We convert roughly monthly based on our expense cycle.
Fees Breakdown
Here's what you'll actually pay:
| Action | Cost |
|---|---|
| Receiving USD (ACH) | Free |
| Receiving EUR (SEPA) | Free |
| USD to EUR conversion | 0.41% |
| EUR to USD conversion | 0.54% |
| Sending EUR (SEPA) | Free |
| Sending USD (ACH) | $1.02 |
| Wise Business debit card | Free (first card) |
| Monthly fee | Free |
Compare this to a typical Dutch bank charging €10-15 per international transfer plus a 2% conversion markup. The savings add up quickly.
Using Wise as Your Primary Business Account
Some DAFT entrepreneurs ask: can I use Wise as my only business bank account?
Short answer: you can, but we don't recommend it as your sole account. Here's why:
Wise is great for:
- Receiving international payments
- Currency conversion
- Paying international suppliers or contractors
You still need a Dutch bank account for:
- Your €4,500 DAFT deposit (IND wants to see this in a Dutch bank)
- Dutch tax payments (Belastingdienst direct debits)
- Local business credibility with Dutch clients
- Mortgage or loan applications (if relevant)
Our setup: Dutch bank account (Bunq or ABN AMRO) as the primary business account, Wise for all international money movement. For details on choosing a Dutch bank, see our guide on the best business bank accounts for DAFT.
Wise Business Debit Card
Your first Wise Business debit card is free. It's a Visa debit that pulls from your multi-currency balances.
Why it's useful: When you travel back to the US, pay in USD from your USD balance—no conversion fee. When you're in the Netherlands, pay in EUR. The card automatically uses the matching currency balance.
For business expenses in other countries (conferences, travel), it converts at the same mid-market rate. Much cheaper than your Dutch bank's debit card abroad.
Accounting and Tax Integration
Wise integrates with most Dutch accounting software, including Moneybird, e-Boekhouden, and Xero. You can sync transactions automatically, which saves time on bookkeeping for your eenmanszaak.
For tax purposes, every conversion is logged with the exact rate and fee. This matters because the Belastingdienst wants accurate EUR amounts for all income, regardless of the original currency. For a broader overview of your annual obligations, see our post on annual requirements for your DAFT business.
What We Wish We Knew: Set up the accounting integration from day one. We spent a weekend manually entering three months of Wise transactions into our bookkeeping. Don't make our mistake.
Common Mistakes to Avoid
Mixing personal and business transfers. Keep your personal Wise account separate from your business one. The Belastingdienst doesn't want to see personal transfers mixed with business income.
Not keeping conversion receipts. Every time you convert currency, Wise emails you a receipt. Save these. Your accountant needs them for your annual return.
Converting too much at once. Exchange rates fluctuate. Converting your entire USD balance in one go means you're fully exposed to that day's rate. Spreading conversions over time averages out the fluctuations.
Frequently Asked Questions
Q: Can I open Wise Business before I have my KVK number? A: You can start the signup, but full business verification requires your KVK number. You can use a personal Wise account in the meantime, though keep transactions separate. For more on the registration process, see our KVK registration guide.
Q: Is Wise regulated in the Netherlands? A: Wise is authorized by De Nederlandsche Bank (DNB) as an electronic money institution. Your funds are safeguarded in line with EU regulations. It's not a full bank, but it's regulated.
Q: Can I receive payments from non-US clients through Wise? A: Yes. Wise supports local bank details in USD, EUR, GBP, AUD, NZD, SGD, and more. Clients in the UK, Australia, or other countries can pay you locally in their currency too.
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