DAFT vs. the Dutch Employment Visa: Key Differences

If you're a US citizen considering a move to the Netherlands, you've likely come across two main paths: the Dutch-American Friendship Treaty (DAFT) for self-employment, and the traditional employment visa (often through the Highly Skilled Migrant or "kennismigrant" program). They lead to the same country but offer very different daily realities.

We went the DAFT route. Several friends took the employment route. Here's what we've learned from both sides.

The Fundamental Difference

DAFT makes you your own boss. You run a business, find your own clients, and handle your own taxes. No employer, no salary, no corporate structure above you.

An employment visa means a Dutch company sponsors you. You get a salary, benefits, and the structure of traditional employment. You work for them, and they handle your visa sponsorship.

This isn't just a visa difference — it's a lifestyle difference.

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Requirements Comparison

Requirement	DAFT	Employment Visa (Kennismigrant)
Nationality	US citizens only	Any nationality
Sponsor	Not required	Dutch employer required
Capital	4,500 euros	None (employer pays)
Salary minimum	None (self-employed)	~46,000 euros/year (2026, age 30+)
Job offer	No	Yes (from recognized sponsor)
Background check	FBI check + apostille	Employer handles verification
Health insurance	You arrange it	Employer typically assists
Business plan	Yes	No

The Sponsorship Question

For an employment visa, a Dutch company must be a recognized sponsor with the IND. Not every company qualifies — they need to register as a sponsor, which costs money and involves paperwork. This means you need to find a job at a company that's both willing to hire you and set up to sponsor foreign workers.

DAFT has no sponsorship requirement. You sponsor yourself, essentially. The trade-off is that you need your own business plan and capital.

Salary Thresholds

The Highly Skilled Migrant visa requires a minimum salary. For 2026, that's roughly 46,000 euros per year if you're 30 or older, and around 34,000 euros if you're under 30. These thresholds adjust annually.

DAFT has no income requirement. You need the 4,500-euro deposit and a viable business, but there's no minimum you need to earn.

Reality Check: The salary threshold for the Highly Skilled Migrant visa isn't just a minimum — it's also a floor for negotiation. If a company is offering below the threshold, they literally can't sponsor you. This actually works in your favor during salary negotiations.

The 30% Ruling: A Big Deal for Employees

Here's something that makes the employment route financially attractive: the 30% ruling. Employees who move to the Netherlands from abroad may qualify for a tax benefit where 30% of their salary is tax-free for up to five years.

This is substantial. On a 70,000-euro salary, you'd only pay income tax on 49,000 euros. That can mean thousands of euros per year in tax savings.

DAFT entrepreneurs don't qualify for the 30% ruling. You pay full Dutch taxes on your business income. The Dutch tax system for DAFT business owners has its own deductions, but nothing as dramatic as the 30% ruling.

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Flexibility and Control

DAFT

Choose your own clients and projects
Set your own hours and rates
Work from anywhere (home, coworking space, cafe)
Pivot your business whenever you want
Take vacation whenever you want (no approval needed)
Income varies month to month

Employment Visa

Stable monthly salary
Paid vacation (minimum 20 days, often 25-30)
Employer handles pension contributions
Sick pay (you still get paid when ill)
Structured career growth
Less autonomy over daily work

What We Wish We Knew: Dutch employment law is incredibly employee-friendly. Paid sick leave, strong termination protections, generous vacation — it's a very different experience from US employment. If job security matters to you, the employment route offers protections that DAFT can't match.

Risk Profile

This is worth thinking about honestly.

DAFT risk: Your income depends entirely on your ability to find and keep clients. No clients means no money. There's no unemployment insurance, no severance, no safety net beyond what you build yourself. If your business fails, you need to figure out an alternative before your permit comes up for renewal.

Employment risk: Your visa is tied to your employer. If you get laid off, you have a limited window to find new sponsored employment before your permit expires. However, Dutch labor law makes it difficult for employers to fire you without cause, and you're entitled to unemployment benefits (WW) if you've worked long enough.

Long-Term Path

Both routes lead to the same destination:

Permanent residency after five years of continuous legal residence
Dutch citizenship after five years (with civic integration exam)
EU freedom of movement once you have Dutch citizenship

The path is identical. The journey is different.

One important note: if you're on an employment visa and get laid off, gaps in your residence can affect your five-year timeline. DAFT permits are independent of any employer, so as long as you maintain your business, your timeline stays clean.

Who Each Option Is Best For

Choose DAFT If:

You want to be your own boss
You have clients or income you can bring with you
You're comfortable with income variability
You value flexibility over stability
You have enough savings to weather slow months

Choose an Employment Visa If:

You want a stable salary and benefits
You prefer the structure of traditional employment
You want the 30% ruling tax advantage
You'd rather focus on your work than running a business
You have a job offer from a Dutch company

Honest Downsides of DAFT

The freedom is real, but so is the responsibility. You handle your own bookkeeping, tax filings, client acquisition, and insurance. There's no HR department. No IT support. No paid sick days. You eat what you kill, as the saying goes.

For more on running a DAFT business, check our guide on annual business requirements.

Our Take

We chose DAFT because we wanted independence. The idea of moving to another country just to work for someone else didn't appeal to us. But we recognize that's a personality thing, not a universal truth.

If someone offered us a great job at a Dutch company with the 30% ruling, would we have considered it? Honestly, maybe. The financial advantages of the employment route are real. But the freedom of DAFT — choosing our own projects, setting our own schedule, building something that's ours — that's worth the trade-off for us.

Review the DAFT requirements or look at what businesses you can start to figure out which path fits you.

FAQ

Q: Can I switch from an employment visa to DAFT? A: Yes. If you're already in the Netherlands on an employment visa and you're a US citizen, you can apply to switch to DAFT. You'd need to meet the DAFT requirements, including the 4,500-euro deposit and a business plan.

Q: Can I do freelance work on the side with an employment visa? A: Generally no, unless your employer and visa conditions allow it. The Highly Skilled Migrant visa is tied to your employment. Side freelancing is a gray area that can jeopardize your status.

Q: Which route is faster to get into the Netherlands? A: The employment visa can be faster if you already have a job offer — processing can take as little as two weeks for recognized sponsors. DAFT typically takes 4-7 months from start to arrival.

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We're not immigration lawyers — just Americans who did this. Requirements change, so verify with official sources.