Can You Work for US Company While Living in Netherlands?
One of the most common questions we get: "Can I keep my US job and work remotely from the Netherlands on DAFT?"
The short answer is: it's complicated.
If you're considering moving to the Netherlands via the Dutch-American Friendship Treaty (DAFT), understanding how to legally work for a US company requires careful planning and professional advice.
The longer answer involves tax treaties, permanent establishment rules, employment law, and a bunch of other legal stuff that makes your head spin. We're not lawyers or tax advisors, but we've researched this extensively and talked to people who are doing it.
Here's what we've learned about working for a US company while living in the Netherlands.
In this guide, you'll learn:
- Can you legally work remotely for a US company from Netherlands?
- Tax implications (you'll pay taxes in both countries)
- Different ways to structure the arrangement
- What actually works in practice
- When you need professional advice
Legal Disclaimer: We are not lawyers or tax advisors. This article shares our research and conversations with others who have explored working for US companies while living in the Netherlands. This information is NOT legal or tax advice. The tax and legal implications of working for a US company from the Netherlands are complex and vary based on individual circumstances. Before making any decisions about your employment structure, consult a qualified immigration attorney and tax advisor who specialize in US expat matters and cross-border employment.
The Legal Framework
DAFT Visa Requirements
First, let's clarify what DAFT requires:
DAFT requirements:
- Start or operate a business in the Netherlands
- Invest €4,500 in that business
- Be self-employed (not employed by someone else)
What this means:
- You can't be a W-2 employee of a US company and qualify for DAFT
- DAFT requires you to have your own Dutch business
- That business needs to be real (not just a visa vehicle)
For more on DAFT requirements, see DAFT Requirements Checklist.
The Complication
Here's where it gets tricky: you can't be employed by a US company for DAFT purposes, but you can contract with a US company.
The distinction:
- Employee (W-2): Not allowed for DAFT
- Contractor (1099): Allowed, if structured correctly
Why this matters: You need to convert your employment relationship to a contractor relationship.
Three Ways to Structure It
Option 1: Become a Contractor
How it works:
- Quit your US job (or negotiate transition)
- Start a Dutch business (eenmanszaak or BV)
- Contract with your former employer as a vendor
- Invoice them for your services
- They pay your business, not you personally
Pros:
- Cleanest for DAFT purposes
- You're clearly self-employed
- Your business has real revenue
- Most legally sound
Cons:
- Your employer needs to agree
- You lose employee benefits (health insurance, 401k, etc.)
- No job security
- More complex taxes
Our take: This is the "right" way to do it if your employer is willing.
What you need:
- Contractor agreement with US company
- Dutch business registration (KVK)
- Invoice system
- Separate business bank account
For more on business registration, see How to Register a Business for DAFT.
Option 2: Dual Structure (Risky)
How it works:
- Keep your US employment (W-2)
- Start a separate Dutch business
- Run the Dutch business on the side
- Use Dutch business for DAFT qualification
Pros:
- Keep your US job and benefits
- Have a separate income stream
- Maintain job security
Cons:
- Legally questionable for DAFT
- IND might question if your business is real
- Tax complications
- Permanent establishment risk for your employer
Our take: This is what some people do, but it's risky. If IND investigates, they might determine you're not really self-employed.
Risks:
- DAFT visa could be denied or revoked
- Your US employer could face Dutch tax obligations
- You could face penalties
Option 3: Work for Different US Clients
How it works:
- Start a Dutch business
- Contract with multiple US clients (not your former employer)
- Build a real consulting/freelance business
- Generate income through your Dutch business
Pros:
- Clearly self-employed
- No complications with former employer
- Real business with multiple clients
- Clean for DAFT purposes
Cons:
- Need to find clients
- Less stable income
- More business development work
- Takes time to build
Our take: This is the cleanest option if you can make it work financially.
Tax Implications
This is where it gets really complicated. You'll likely pay taxes in both countries.
US Taxes
As a US citizen, you're required to file US taxes no matter where you live.
What you'll owe:
- Income tax on worldwide income
- Self-employment tax (15.3% on business income)
- Possible state taxes (depends on your last state of residence)
Deductions and credits:
- Foreign Earned Income Exclusion (FEIE) - exclude up to ~$120,000 of income
- Foreign Tax Credit (FTC) - credit for Dutch taxes paid
- Business expenses
Our take: Most Americans in Netherlands use FEIE or FTC to avoid double taxation, but you still need to file.
Dutch Taxes
As a Netherlands resident, you pay Dutch taxes on worldwide income.
What you'll owe:
- Income tax (progressive rates up to 49.5%)
- Social security contributions
- Possibly VAT (if revenue exceeds €20,000)
Deductions:
- Business expenses
- 30% ruling (if you qualify - but DAFT holders usually don't)
- Self-employed deductions
Avoiding Double Taxation
US-Netherlands tax treaty helps:
- Prevents paying full tax in both countries
- Foreign Tax Credit allows you to credit Dutch taxes against US taxes
- FEIE allows you to exclude foreign earned income
Reality: You'll probably pay more total tax than you did in the US, but you won't pay double.
Our recommendation: Hire a tax advisor who specializes in US expat taxes. This is not DIY territory.
Permanent Establishment Risk
This is a big concern for US employers.
What Is Permanent Establishment?
If you work for a US company from the Netherlands, you might create a "permanent establishment" (PE) for that company in the Netherlands.
What this means:
- The US company could be subject to Dutch corporate taxes
- They could have Dutch employment law obligations
- They could face penalties
When PE risk is high:
- You're a W-2 employee working remotely
- You're making business decisions for the company
- You're signing contracts on behalf of the company
- You're representing the company to Dutch clients
When PE risk is lower:
- You're a contractor, not an employee
- You're working on your own behalf
- You're not representing the company in Netherlands
- You have other clients
Our take: This is why many US companies won't let employees work remotely from other countries. The tax risk is real.
How to Minimize PE Risk
If you're contracting:
- Have a clear contractor agreement
- Work as an independent vendor
- Don't represent yourself as an employee
- Have other clients (not just one US company)
If your employer is concerned:
- They might require you to quit and become a contractor
- They might refuse to let you work from Netherlands
- They might require legal review
Practical Considerations
Employment Benefits
What you lose if you become a contractor:
- Health insurance (you'll buy Dutch insurance instead)
- 401(k) match
- Paid time off
- Unemployment insurance
- Workers' compensation
What you gain:
- Flexibility
- Ability to live in Netherlands
- Potential tax deductions
- Control over your schedule
Our take: Factor the value of benefits into your contractor rate. We recommend charging more to make up for lost benefits.
Time Zones
Working for US company from Netherlands means:
- 6-hour time difference from East Coast
- 9-hour time difference from West Coast
- Meetings at weird hours
- Possible evening work
Our experience: We work US hours sometimes, which means evening work. It's doable but not ideal.
Strategies:
- Negotiate flexible hours
- Set core overlap hours
- Use asynchronous communication
- Be clear about availability
Employer Policies
Many US companies:
- Don't allow international remote work
- Require employees to be in the US
- Have compliance concerns
- Won't accommodate Netherlands residence
Our take: Check your company's policy before planning your move. Some are flexible, many aren't.
What People Actually Do
Based on conversations with other Americans on DAFT:
Scenario 1: Freelancers and Consultants
What they do:
- Have multiple US clients
- Run real consulting businesses
- Invoice clients through Dutch business
- File taxes in both countries
How it works: Well. This is the cleanest setup.
Scenario 2: Former Employees Turned Contractors
What they do:
- Negotiated contractor relationship with former employer
- Set up Dutch business
- Invoice former employer
- Lost benefits but kept work
How it works: Mostly well, but requires employer buy-in.
Scenario 3: Side Business + US Employment (Risky)
What they do:
- Keep US W-2 job
- Run separate Dutch business
- Use Dutch business for DAFT
- Don't tell IND about US employment
How it works: Risky. Some people do this, but it's legally questionable.
Our take: We don't recommend this. If IND finds out, your visa could be revoked.
Scenario 4: Fully Remote US Employees (Very Risky)
What they do:
- Keep US W-2 job
- Work remotely from Netherlands
- Don't tell employer
- Fake US presence
How it works: Extremely risky and probably illegal.
Our take: Don't do this. You're violating visa requirements, potentially breaking tax laws, and putting your employer at risk.
Our Recommendation
If you want to work for a US company while on DAFT:
1. Be honest with your employer
- Explain your situation
- Discuss contractor arrangement
- Get legal/HR involved
2. Structure it correctly
- Become a contractor, not an employee
- Set up proper Dutch business
- Have written agreement
3. Get professional advice
- Hire expat tax advisor
- Consult immigration lawyer if needed
- Don't DIY this
4. Consider alternatives
- Find multiple clients instead of one
- Look for remote-friendly companies
- Consider Dutch employment
5. Be prepared to walk away
- Your employer might say no
- You might need to find new work
- Have a backup plan
Alternative: Working for Dutch or European Companies
Instead of working for US company, consider:
Dutch employment:
- Easier legally
- Dutch benefits
- No DAFT needed (you'd get work visa instead)
European remote work:
- Many European companies hire remote workers
- Easier than US employment
- Still get to live in Netherlands
Starting your own business:
- Full control
- Clean for DAFT
- Build something of your own
Our take: If your US employer won't accommodate contractor arrangement, look for other options.
Frequently Asked Questions
Q: Can I keep my US job and get DAFT?
A: Not as a W-2 employee. You'd need to become a contractor or have a separate Dutch business.
Q: Will my employer let me work from Netherlands?
A: Maybe. Many won't due to tax and legal concerns. This requires a conversation with your employer.
Q: How much should I charge as a contractor?
A: Generally 1.5-2x your former salary to account for lost benefits, taxes, and business expenses.
Q: Do I pay taxes in both countries?
A: You file in both, but tax treaties prevent double taxation. You'll still probably pay more total than you did in US.
Q: Can I work for a US company without telling them I'm in Netherlands?
A: Legally, no. And it's risky for you and them. Don't do this.
Q: What if my employer finds out I'm working from Netherlands without permission?
A: You could be fired. They could face tax penalties. It's not worth the risk.
The Bottom Line
Working for a US company while living in the Netherlands on DAFT is possible but complicated.
The cleanest way: become a contractor, set up a Dutch business, and invoice your former employer. This requires their agreement and means losing employee benefits.
The risky way: keep US employment and run a side business. This is legally questionable and could jeopardize your visa.
The alternative: find new work (Dutch employment, European remote work, or build your own business).
Our advice: Be honest with your employer, get professional tax and legal advice, and structure things correctly. Don't try to game the system—it's not worth the risk.
This is one area where professional advice is essential. The tax and legal implications are complex, and mistakes can be expensive.
Ready to understand the full DAFT process? Our complete guide covers everything from requirements to application timeline. Get the Complete DAFT Guide →
Digital Guide — $199
We're not immigration lawyers—just Americans who did this. Requirements change, so verify with official sources.