The Dutch-American Friendship Treaty at 70: How “Friendly” is it in Practice?

What is the Dutch-American Friendship Treaty?

In the Netherlands, the Dutch-American Friendship Treaty (DAFT) has become an increasingly attractive immigration route for U.S. entrepreneurs. But what exactly is the Treaty, how does it work in practice and does it offer comparable benefits on both sides of the Atlantic?

The Treaty between the Kingdom of the Netherlands and the United States of America was signed on 27 March 1956. It is a bilateral agreement designed to strengthen relations between the two countries and encourage closer economic and cultural relations. Among other objectives, the Treaty aims to promote mutually beneficial trade, encourage investment, and establish reciprocal rights and privileges. In practice, however, layered domestic legal frameworks mean that the immigration benefits available under the Treaty differ significantly depending on which side of the Atlantic an applicant is on.

The Friendship Treaty is often immediately associated with flexible residence permit conditions, however, it covers a much broader range of topics. Among other things, it provides that:

• • • Commerce and navigation between the two territories should be conducted freely;
    • Nationals may enter and reside in the territory of the other country to conduct trade or establish, develop and direct an enterprise in which substantial capital has been invested;
    • Tourists and other visitors should be able to travel easily, with admission, stay and departure facilitated;
    • Certain benefits should be available without a means assessment, including in cases of illness; and
    • Homes, offices and similar premises may not be entered without a valid legal basis.

Even among those most likely to benefit from it, the Treaty is not especially well known. Many U.S. entrepreneurs are often unaware that DAFT can make establishing a business in the Netherlands substantially easier. At the same time, Dutch entrepreneurs may assume that the Treaty gives them a similar shortcut into the U.S. In reality, it does not  operate in the same way.

Here we examine that disparity: what DAFT offers U.S. nationals in the Netherlands, how it applies across the wider Kingdom of the Netherlands (which includes Aruba, Curacao, the Dutch part of St Maarten, and the special municipalities of Bonaire, Sint Eustatius and Saba), and what Dutch nationals can realistically expect when relying on the Treaty in the U.S.

Although the Treaty is broader than immigration law, this blog focuses on its practical immigration implications for Dutch and U.S. nationals.

DAFT in the Netherlands

DAFT enables U.S. nationals to obtain a Dutch residence permit more easily for themselves and their family members. In addition, accompanying family members are not subject to a separate income or means requirement.

The DAFT permit offers several advantages compared to other immigration routes for entrepreneurs in the Netherlands. In essence, it provides a more accessible alternative to the standard Dutch self-employed residence permit, with fewer eligibility requirements and generally faster processing times.

Unlike the regular self-employed permit, DAFT is not subject to the points-based assessment. Under that assessment, the Dutch Immigration and Naturalization Service (IND) evaluates whether the business provides sufficient added value for the Netherlands. Points are awarded across several categories, and the business must generally score at least 90 points to qualify for the regular self-employed permit.

Since April 2024, the IND has applied a new working method for first-time DAFT applications. Applicants generally do not need to submit all business-related supporting documents with their initial application. When there are no concerns about the application, the IND may grant the residence permit based on the applicant’s intention to undertake qualifying activities, provided key business documents are submitted within six months of approval.

Importantly, time spent in the Netherland under a DAFT permit can count towards the residence period required for Dutch permanent residence or naturalization.

Figures from the IND show that 1,090 DAFT applications were approved in 2025. The minimum investment amount for U.S. nationals in 2026 is EUR 4,500, which is considerably lower than the investment typically required of Dutch nationals seeking to rely on the Treaty in the United States.

Despite these advantages, DAFT remains relatively underutilized. Compare with other immigration categories used by U.S. nationals, such as highly skilled migrant routes and Family and Partner applications, where application volumes number are in the tens of thousands, The DAFT approval figures remain modest. This suggests that awareness of the route remains limited despite its practical benefits.

Application of the Treaty in wider Kingdom of the Netherlands

DAFT-related rules do not only apply in the Netherlands, but also in the Dutch Caribbean region including Aruba, Curaçao, St Maarten, Bonaire, Sint Eustatius and Saba.

On 15 December 2014, the Joint Court of Justice ruled that, on the basis of DAFT, U.S. nationals must be treated in the same manner as Dutch nationals who were not born on the relevant island. As a result, the Dutch Caribbean islands also present attractive opportunities for U.S. entrepreneurs.

DAFT in the United States

In the United States, Dutch nationals seeking to benefit from DAFT must generally apply through the existing E visa framework.

Although DAFT is formally reciprocal, its implementation is materially asymmetric. The Netherlands treats the Treaty as a distinct immigration route that offers U.S. nationals reduced substantive criteria. By contrast, the United States incorporates DAFT into a broader statutory framework that applies largely uniform requirements to all treaty-country nationals. This leads to significantly different outcomes for applicants, particularly in terms of predictability and access to long-term residence.

In the United States, DAFT functions primarily as the qualifying treaty that allows Dutch nationals to access to the E visa classifications. It does not create independent immigration rights or modify the statutory eligibility criteria established under the Immigration and Nationality Act. In other words, DAFT operates as the treaty basis required to access pre-existing visa categories, rather than as a separate immigration route.

Dutch nationals typically rely on either the E-1 Treaty Trader or E-2 Treaty Investor classification. These permit nationals of a treaty-country to enter the United States to engage in substantial international trade or to develop and direct a U.S. business in which they have invested a substantial amount of capital.

For E-2 purposes, there is no fixed minimum threshold, instead, the U.S. Department of State applies a  proportionality test to determine whether an investment is substantial by weighing the amount of qualifying funds invested against the cost of the business.

Generally, the lower the cost of the business the greater the percentage of investment required. For example, an investment representing 100% of the start-up cost may be considered substantial where the total business is relatively low.

Eligibility depends on meeting the general statutory and regulatory requirements applicable to all treaty nationals, rather than DAFT-specific criteria. This reflects a treaty-neutral framework in which uniform substantive standards apply to all qualifying treaty countries, regardless of the underlying bilateral agreement.

Accordingly, DAFT does not alter, reduce or tailor the underlying E visa eligibility criteria for Dutch nationals. Its principal benefit is that it provides E visa categories. This differs from the Dutch approach, where a dedicated process is available for U.S. nationals under DAFT.

Although E visas may be issued for several years, admission to the United States is generally granted for up to two years at a time. A defining feature of E status is its non-immigrant nature. Unlike certain employment-based immigration categories, time spent in E-1 or E-2 status does not, but itself, create a pathway to U.S. lawful permanent residence. Applicants must continue to demonstrate an intention to depart the United States when their authorized stay ends. Although extensions may be granted in unlimited two-year increments, the regime itself does not provide a direct legal bridge to permanent residence or citizenship. This stands in sharp contrast to the Dutch implementation of DAFT.

Spouses of E-1 and E-2 principal applicants are authorized to work incident to status. Since 30 January 2022, USCIS and CBP have issued Forms I-94 with the class-of-admission codes E-1S and E-2S, which serve as evidence of employment authorization without the need to apply separately for an Employment Authorization Document.

Children under the age of 21 may accompany the principal applicant, whereas the Netherlands generally applies an age limit of 18 for dependent children. However, children in E status are not authorized to work. By contrast, the Netherlands grants work rights to both spouses and qualifying children under the Dutch DAFT framework.

According to figures from U.S. diplomatic missions, through September 2025, eight E-1 visas and 239 E-2 visas were issued to Dutch nationals.

A Treaty with Different Applications

In short, the figures from both countries suggest that the Dutch-American Friendship Treaty has yet to the achieve the level of awareness or uptake that its potential may justify.

For U.S. entrepreneurs, it remains a practical and underused route to residence in the Netherlands and the wider Kingdom of the Netherland. For Dutch nationals, the Treaty is valuable because it provides access to the U.S. visa E categories, but it does not create a standalone or simplified U.S. immigration route. For founders, investors and businesses pursuing transatlantic growth, that distinction matters.

Need to know more?

For questions about the Dutch-American Friendship Treaty, or to explore other immigration options for the Netherlands or the United States, our teams are ready to assist. Please contact us via [email protected] for the Netherlands and [email protected]  for the United States.

This blog was published on 30 September 2026 and reflects information available at that time. Updates may occur as policies evolve. To stay informed on the latest immigration news and analysis, please subscribe to our alerts and follow Fragomen on  LinkedIn, Facebook and Instagram.