BV or ZZP: A guide for Americans coming to the Netherlands on a DAFT visa

Imagine running your own business in the Netherlands, with weekend trips across Europe just a short train ride away. If you’re a US citizen, the Dutch‑American Friendship Treaty (DAFT) visa makes that move a real possibility. This residence permit lets Americans live here as entrepreneurs with a relatively light set of requirements. 

The practical choice you face early on is deciding on your business form: should you incorporate a private limited liability company (BV) or register as a freelancer (ZZP)? Below, we explain both options in clear US terms, outline timelines and pitfalls, and show how to act quickly.

DAFT visa Netherlands: What it is and who qualifies

DAFT stems from a 1956 treaty between the US and the Netherlands. Instead of the points‑based test used for other nationals seeking a self-employment visa, US citizens can qualify by starting and running a Dutch business and depositing as little as €4.500 as starting capital.

The capital can be used for legitimate business expenses after the company is incorporated. DAFT is not a conventional employee work visa, and it allows you to work only for your own business. If you want to work for another Dutch employer, you’ll need a separate permit.

Two ways to qualify: a BV (company) or ZZP (freelancer)

Both paths work under DAFT. The right choice depends on income expectations, client profile, and risk tolerance. Here's a side-by-side comparison of the two structures.

	BV (private limited liability company)	ZZP (sole proprietor/freelancer)
Setup	Formed by Dutch civil‑law notary; registration handled for you	Register yourself at the Chamber of Commerce (KvK)
Liability	Limited liability: personal assets generally protected	Unlimited personal liability
30% ruling eligibility	Possible (via payroll as your company’s employee/director)	Not eligible (no employer–employee relationship)
Client perception	Corporate‑friendly; easier to work with larger companies	May face restrictions with corporates and platforms
Practical hurdles	Can be incorporated fully online via notary video verification	Must appear in person in the Netherlands to finalise KvK registration

Why many DAFT applicants prefer a BV

While you need to select the structure that correlates best with your aims and preferences, many DAFT applicants find the BV option works best for them. Some of the main reasons for this are:

• Access to payroll and potential 30% ruling: If you meet the criteria, your BV can employ you and apply for the tax break within four months of your first workday.
• Asset protection: The BV is a separate legal entity; your personal assets are generally shielded from business debts.
• Credibility for enterprise clients: Many corporate procurement teams require contracting with companies rather than sole proprietors.
• Remote start: You can complete the incorporation at a distance via an online notarial deed and arrive with your structure ready.

The 30% ruling as of 2025 in plain English

The 30% ruling allows an employer to pay a tax‑free allowance of up to 30% of an employee’s salary for a limited period. For new and recent applications, the decision is valid for up to five years. You must apply within four months of your first Dutch workday.

There are important factors to bear in mind if you are planning to apply for the 30% ruling. Firstly, the benefit is capped by a statutory salary ceiling (the "WNT norm"), and secondly, the government plans to reduce the percentage to 27% from 2027.

Eligibility depends on several factors (including a minimum taxable salary and distance‑from‑border conditions), but in practice, the BV route is the only realistic way for DAFT entrepreneurs to meet the employee requirement and claim the 30% ruling.

When ZZP makes sense – and its limitations

ZZP can be a good temporary choice if you want to test the market or keep admin light at the beginning. Registration is straightforward, and the fees are modest. There are some key limitations to be aware of:

• No access to the 30% ruling, as there is no employer-employee relationship
• Unlimited personal liability for business debts
• Enterprise clients may hesitate to contract with sole proprietors
• You must be physically present in the Netherlands to finalise your KvK registration (even if you complete the online pre‑registration)

Typical procedures

While actual timings and requirements depend on documents, banks and notary scheduling, here are the main steps you usually need to take for each option.

BV route

Incorporating a BV typically takes one to two weeks. This is done by an online deed via notary. After this is done, you can file your DAFT application, open a business bank account, deposit the required €4.500, and start a payroll registration, if applicable.

ZZP route

To set up as a ZZP, you need to book a KvK appointment in the Netherlands, register and open a business account, and deposit the €4.500. Once this is complete, you can then file your DAFT application.

Common mistakes to avoid

Each journey to the Netherlands is individual, but these are the most common mistakes that DAFT applicants make. Check to see if they might be pitfalls you need to avoid:

• Missing the four‑month window to apply for the 30% ruling after your first Dutch workday. The Dutch are strict on this, and missing this deadline can cost you a fortune in lost income.
• Choosing ZZP when your income and clients point to a BV. This can mean losing out on tax savings and limited liability.
• Under‑estimating onboarding tasks. These include employer registration, payroll and VAT/CIT filings. Plan these early so your DAFT processing is simple.