Amerikaanse zelfstandigen

American entrepreneurs in the Netherlands

Americans who want to settle in the Netherlands as entrepreneurs can derive a special position from the Treaty for Friendship, Trade and Shipping between the Netherlands and the United States (hereafter called the Friendship Treaty) with the additional Protocol. The Friendship Treaty states three prerequisites for granting entry and residency to citizens of both countries: to carry out commerce, to conduct a business in which substantial capital has been invested or will be invested, and for other purposes, such as accompanying or following family members.

Conditions for entry of an American entrepreneur

The American entrepreneur who intends to enter on the grounds of the Friendship Treaty must meet the following conditions in order to be eligible for a residence permit:

• He must be an entrepreneur active in one of the legal Dutch company entities, for example, a sole proprietorship or a partnership. He is not allowed to carry out a 'free profession', such as practicing law or medicine. He must engage in commercial activities.
• A substantial amount of capital should be invested in the business. The investment can include tangible goods as well as money. Substantial capital is meant to be enough to be able to run an independent business. In the case of a sole-proprietorship, a minimum of EUR 4,500 must be invested in the company; a partnership or a limited corporation would require at least 25% of the capital and a minimum of EUR 4,500. In the case of a public corporation, there must be at least 25% of the placed capital, amounting to a minimum of EUR 11,250. Furthermore, the funds must be the person's own and may not be borrowed.
• Americans must provide evidence of their investment with recent figures that have been checked by an independent, qualified professional. This can be an accountant or a tax advisor who is a member of the Federation of the College of Tax Advisors. Furthermore, to benefit from the provisions of the Treaty, it is important that the American maintains the invested capital. This means that the assets can never fall lower than required minimum for the type of company.
• The business must be registered in the Trade Register of the Chamber of Commerce.
• A business plan is also necessary (with a forecast of future profits).
• An American invoking the Treaty must be in possession of a valid passport (for at least one more year from the date of application) and must have arranged health insurance.
• The Friendship Treaty further provides that the signatory countries are authorized to apply measures that are necessary to maintain public order and to protect the public health, morals and safety.

If the application is well prepared and the above-mentioned conditions have been met, the American entrepreneur will be eligible for a residence permit.

The residence permit is normally granted for a period of one year and must be renewed on a yearly basis. At the time of renewal, financial records must be submitted in order to show that the business is a viable one and that the American is earning a sufficient enough livelihood to support himself.

In providing the accounting records of the previous financial year, the American invoking the Treaty must be able to prove he has earned enough to prevent his needing to appeal to Social Services for financial assistance.

When an American who has had a residence permit based on employment for less than three years wants to shift to self-employment under the Treaty, he must apply for a change in his residence permit. A new permit will be given as long as the employer had been granted an employment permit!

Family members of Americans utilizing the Treaty

Pursuant to the Friendship Treaty, the spouse and the unmarried minor children of the American who enters the country under the terms of implementing the Treaty shall also be allowed entry. According to the additional Protocol, no income requirements will be imposed on the family members who reside with an American with Treaty status. However, it states in the Netherlands Aliens Circular that family members can be refused entry if the American covered by the Treaty is not earning enough income.

Purpose of the Treaty

The intention of the Friendship Treaty is to simplify trade between the two parties. The conditions for American entrepreneurs who want to settle in the Netherlands are certainly more straightforward than they are for other foreign nationals. Americans taking advantage of the Treaty do not have to prove that their business activities will serve essential Dutch economic interests. The importance of this is not insignificant, as it frequently represents an important obstacle in the entry procedure of other self-employed entrepreneurs.

Note: Though all due care was taken in compiling these texts, certain information may nevertheless be inaccurate or outdated. REWIN is not liable for the consequences of any activities undertaken on the basis of these texts.