The European Dream: A Guide for American Entrepreneurs Moving to Europe in 2026

The statistics are telling: From 2013 to 2022, the number of Americans in the Netherlands grew from about 15,500 to 24,000 and has now reached approximately 47,000 in 2026. In Portugal, the American population tripled to nearly 10,000, and in Spain it increased to over 45,000. Moderate to steady growth was observed in countries like France, Germany, and the Nordics. With various European countries offering incentives ranging from streamlined visa processes to tax breaks, the continent has become not just a market but an expansive field of opportunity for American entrepreneurs.

Your options as an American relocating to Europe

When looking to move to the European Union, American professionals typically encounter two distinct pathways to secure work and residence permits.

The first is through employment with an established firm, where Highly Skilled Migrant (HSM) visas are commonly used. These visas are designed to attract top-tier talent and generally streamline the process for qualified applicants working in specialized fields. Several countries also hand out visas tied to labor shortages (i.e. types of work the national population does not offer enough of).

The second pathway is for entrepreneurs, startups, and self-employed individuals. In contrast to the HSM route, these visas usually require additional steps such as submitting a business plan, demonstrating financial stability, or even meeting language proficiency criteria. The process is more complex but offers the flexibility to shape your own professional journey. Some entrepreneurs take a hybrid approach by setting up a company in the EU and then hiring themselves, thereby accessing some benefits available to employees.

In this article, we’ll explore how American entrepreneurs can establish their businesses in the EU and secure a work and residence permit. We will compare the relevant countries and their various programs and incentives.

Remember that obtaining a residence permit in one individual EU country doesn’t automatically grant the right to work and live throughout the entire EU. Each EU member state has its own immigration policies, and a residence permit from one country is generally not valid for working or long-term residence in another EU country. However, residence permits in Schengen Area countries allow for visa-free travel to other Schengen countries for short visits, typically up to 90 days within a 180-day period. For longer stays or to work in another EU country, you would usually need to apply for a separate residence permit in that country.

Netherlands

Quick facts:

• The American population in the Netherlands has grown from approximately 15,500 in 2013 to around 47,000 in 2025
• The Netherlands is #1 in the EF English Proficiency Index
• Most prominent advantages of the Netherlands for American citizens are the Dutch American Friendship treaty (DAFT) and the 30%-ruling

Residence in the Netherlands

If you’re a U.S. citizen planning to set up a business and relocate to the Netherlands, you have a few visa options. The Dutch-American Friendship Treaty (DAFT) offers an easier path with less red tape. The Start-up Visa is geared towards innovative entrepreneurs but requires a strong business plan and mentorship. The Self-Employed Visa is another option but has strict income and business criteria. Each route has its own set of requirements and benefits, so choose the one that aligns best with your business goals.

Official route: start-up visa or self-employed visa (slow and expensive)

As a non-EU entrepreneur relocating to the Netherlands, the official way in would be by applying for a start-up visa or the self-employed visa. However, securing these visas is known to be quite challenging. The process can even take a full year and is quite expensive.

Alternative: Set up LLC + become sponsor (or EOR / payroll)

Therefore, the alternative is to set up a LLC (BV) in the Netherlands and employ yourself in this company. Establishing the company itself is straightforward, but obtaining a residence/work permit as a director working for your own company is more complicated. The process is not only very lengthy (1 year is not uncommon), it is also quite expensive.

In order to be allowed to live and work for your own company in the Netherlands, this new BV (which would be your new employer) needs to have Recognised Sponsor status from the Dutch Immigration Authorities (IND) before it can sponsor any Knowledge Migrants. It costs just under €3,000, takes around 4 months and your company would be thoroughly assessed by the Enterprise Agency for financial stability. Most applications do not meet the criteria and are unlikely to succeed. The company needs to be in one of the sectors that the authorities (through an organization called RVO) wants NL to develop and grow (mostly tech sectors) and then the company would have to be approved by the IND (again with RVO analysis) to become a Recognised Sponsor before you could hire yourself or any other (non EU) employee from abroad.

The easiest way into the Netherlands for an employee would be to have a payroll company employ the person, and then second him/her to the new BV. That will cost around €700 per month (excluding initial costs), on top of the Highly Skilled Migrant level salary that would have to be paid. In both cases, the employee would have to qualify as a Highly Skilled Migrant, so they’d have to think carefully about what the job would entail. Complicated, but no Immigration Department makes it easy for foreign nationals unless it’s by a controlled and approved route.

DAFT (highest success rate)

The easiest route for an American entrepreneur to set up a business and move to the Netherlands could be the DAFT (Dutch-American Friendship Treaty) agreement. This allows U.S. citizens to start, own, and operate a business in the Netherlands with minimal red tape. It’s generally easier to secure than other visa types like the start-up or self-employed visas. However, you’ll need a solid business plan and sufficient funds to support yourself.

Initially, the permit is valid for 2 years, allowing the U.S. citizen to establish or buy a business in a Dutch city and operate as a self-employed entrepreneur. If the business proves successful, the visa can be extended for an additional five years. After a total of five years, the visa holder may be eligible to apply for permanent residency, provided specific conditions are met.

The most important requirement is a solid business plan. The main conditions for the DAFT application are that you invest EUR 4,500 (meaning you need to have this available during the first year of your stay). This amount is typically added as nominal share capital in case of a LLC/BV.

2026 updates:

• IND application fee: €423 for main applicant (2026)
• Processing time has improved to 4-6 weeks (significantly faster than before)
• The IND now processes DAFT applications without upfront financial document checks, conducting random audits after approval instead

We can help you submit the DAFT application. You can read more in our dedicated guide on the DAFT treaty or contact us if you have any questions.

Tax incentives

30%-ruling

This ruling is one of the main reasons US entrepreneurs opt for the Netherlands. It only works with a LLC/BV where you are employed by the company. If you expect your business to make more than approximately €69,000 a year (2026) and you’ve never lived or worked in the Netherlands before, we suggest setting up a BV. You’ll probably be eligible for the Dutch 30% ruling, which effectively makes 30% of your income tax-free.

2026 salary thresholds:

• Standard: €48,013 gross annually
• Under 30 with Master’s degree: €36,497 gross annually

Current status and upcoming changes:

• 30% tax-free allowance continues through 2026
• From 2027: reduced to 27% for all applicants who first applied from January 1, 2024 onwards
• Maximum tax-free amount capped at €262,000 in 2026 (WNT standard, up from €246,000 in 2025)
• Duration: 5 years maximum
• Partial non-resident tax status for Box 2 and Box 3 has been abolished as of January 1, 2025 for new applicants
• Transition period: Those who had the 30% ruling in 2023 can still use partial non-resident status until December 31, 2026

Additional benefits with the 30% ruling:

• Expense relocation costs up to €7,750 (2026) as business costs in your BV
• Expense international schooling costs for children as business costs in your BV
• Swap your foreign driver’s license for a Dutch one without additional requirements

Read more about the 30% ruling and other tax incentives in the Netherlands on this page. For other information about doing business in the Netherlands, please read our complete guide.

????️ US-Netherlands Tax & Salary Navigator (2026)

For US founders and corporate subsidiaries, cross-border compliance relies on balancing Dutch DGA (Director-Major Shareholder) rules with the US-Netherlands Tax Treaty.

2026 30% Ruling Drempels • Standard: €48,013
• Under 30 (Master’s): €36,497
• Cap (WNT): €262,000

US-Based Partners Partners residing in the US can typically invoice via a US entity. This avoids Dutch payroll, provided a formal Management Agreement is in place.

Thomas’ Compliance Alert: The US-Netherlands Tax Treaty generally taxes you where you live. However, performative executive functions in the US can trigger a “Permanent Establishment” risk for your Dutch BV. Always claim your Foreign Tax Credits on IRS Form 1040 to avoid double taxation.

— Thomas Jaques, NordicHQ
Request a US-to-NL Tax Assessment

The UK

While not in the EU anymore since Brexit, the UK can be an attractive option for English-speaking entrepreneurs. However, keep in mind that long-term residency (or even citizenship) in the UK does not give you the right to live and work in EU countries.

Residence in the UK

The Innovator Founder visa (formerly UK Innovator Visa, replaced the previous Innovator and Start-up visas in April 2023) requires endorsement from a recognized UK body. You need to speak English fluently and be able to prove that you have enough personal savings to support yourself while you’re in the UK. Most of all, your business must be innovative, so something completely new. This requirement can be quite hard to meet.

Key changes from previous versions:

• No longer requires £50,000 minimum investment (removed as of April 13, 2023)
• Only two check-in meetings required (at 12 and 24 months) instead of three
• Can work an additional job if it’s RQF Level 3 or above

Under an Innovator Founder visa, you can:

• Establish one or multiple businesses
• Serve in your business as either a director or as a self-employed partner
• Pursue skilled work outside your business, such as roles listed under Skilled Worker eligible occupations or jobs requiring at least a level 3 qualification
• Bring eligible family members, including your partner and children, as dependants
• Travel internationally and return to the UK
• Seek permanent UK residency, also referred to as ‘indefinite leave to remain,’ after living in the UK for 3 years and fulfilling other eligibility criteria

Main requirements (2026):

• Business must be new (can’t join existing trading business)
• Business must be innovative, viable, and scalable
• Endorsement from approved body required
• English language proficiency (CEFR B2 or equivalent)
• Maintenance funds: £1,270 held for 28 days
• Application fee: £1,274 (if outside UK) or £1,590 (if inside UK)

Incentives in the UK

Business Asset Disposal Relief means you’ll pay tax at 10% on all gains on qualifying assets, for example when selling (parts of) your business.

Ireland

Residence in Ireland

Ireland’s Immigrant Investor Programme (IIP) gave right of residence to those immigrants investing EUR 1 million into the Irish economy. It was scrapped in 2023.

Incentives in Ireland

There are several tax incentives to attract people to start their own business in Ireland. Among them are the ‘Start your own Business Relief’ and a few others. One of the more attractive ones is SURE. This is a tax relief for new entrepreneurs offering a refund of past Income Tax. Eligibility extends to employees, the unemployed, and recently redundant individuals. You must start a new business, have primarily PAYE income in the last four years, work full-time in the new company, invest cash in new shares, and keep those shares for at least four years. Specific conditions apply.

Read more about doing business in Ireland.

Portugal

Residency in Portugal

Investor Visa – Portugal (Golden Visa): Known as the Golden Visa, it previously allowed residence through real estate purchase. However, as of October 2023, the real estate investment option has been completely eliminated under the “Mais Habitação Law.”

Current investment options (2026):

• €500,000 in qualifying investment funds (private equity or venture capital, 5-year maturity, at least 60% invested in Portuguese companies)
• €500,000 in business investment creating at least 5 jobs
• €500,000 in scientific research
• €250,000 in cultural/artistic production
• Creating at least 10 full-time jobs

Important updates:

• The €1.5 million capital transfer option was also removed in 2023
• Processing time: 12-18 months (AIMA has reduced the backlog significantly in late 2025)
• Minimum stay requirement: 7 days in the first year, then 14 days every subsequent two years
• After five years, you can apply for permanent residence
• Citizenship timeline: A proposed law to extend the requirement from 5 to 10 years was declared partially unconstitutional by Portugal’s Constitutional Court in December 2025 and is currently paused

Alternative visa: In Portugal a residential visa (D7) requires income of just 150% of the national minimum wage, or about €1,100 per month. This is suitable for those with passive income such as pensions or rental income.

Incentives in Portugal

The Non-Habitual Resident (NHR) tax regime, which previously offered a 10% flat tax on “passive income” such as investments or pensions, was terminated on January 1, 2024. Portugal has introduced a new tax regime specifically targeting talent in scientific research, technology, and innovation sectors.

Italy

Tax incentives

Italy is targeting wealthy individuals by offering a flat annual income tax rate of €200,000, irrespective of their actual earnings. Under this scheme, qualifying individuals pay a flat annual tax of €200,000 on their global income, irrespective of how much they actually earn. This means that no matter how high the income, the tax liability will remain fixed at €200,000 per year.

Key features:

• Global Income: The flat tax covers not just income earned within Italy but worldwide income as well
• Duration: This regime is usually applicable for a maximum of 15 years, although there can be conditions for renewing or extending it
• Family Members: Additional family members can also be added to this tax scheme, but they are subject to a lower flat rate, usually €25,000 per person per year
• Exclusions: Certain types of income, like capital gains from substantial shareholdings during the first five years, are excluded and will be taxed under the normal tax rates
• Opt-Out: It is usually possible to exclude income from specific countries from the flat tax regime, opting to pay taxes on that income in the respective countries instead
• Eligibility: To qualify, individuals must not have been tax residents in Italy for at least nine of the previous ten years before becoming a tax resident under this regime
• Formalities: To take advantage of this scheme, certain formalities and filings are required, often necessitating professional tax advice
• Renouncement: Individuals can renounce the regime before the 15-year period is over if they wish, usually without incurring penalties

Sweden

Relocation to Sweden as a US entrepreneur

There are no specific self-employed or startup visas in Sweden. Typically, the routes into Sweden for non-EU nationals include work permits, which often require a job offer from a Swedish employer, or permits for starting or running a business, which require a detailed business plan and financial proof that you can sustain yourself and your business.

Tax incentives

Sweden’s ‘Expert tax relief’

In Sweden, key foreign staff can benefit from a significant income tax relief during their initial three years of employment. Qualified employees are taxed on just 75% of their income, with the remaining 25% being tax-exempt. This tax advantage extends to all forms of compensation, including housing allowances, living expenses, stock options, and other special benefits provided by the employer. This tax relief is the most comparable to the Dutch 30% tax ruling.

Additional (tax) Benefits:

• Sweden’s Holding Company Framework: Sweden ranks as one of Europe’s most attractive locations for holding companies, offering tax exemptions on capital gains and dividends along with other competitive tax policies
• Exemptions on Business-Related Gains: Capital gains and dividends from business-oriented shares are typically tax-free
• International Scope: These exemptions can apply to shares in, or dividends from, both Swedish and foreign companies
• Declining Corporate Tax Rate: The effective tax rate for corporations is on a downward trend
• Interest Deductions: Interest costs are generally tax-deductible
• No Thin-Capitalization Policies: Sweden doesn’t enforce thin-capitalization rules
• No Withholding Tax on Interest: Interest payments are not subject to withholding tax
• No Capital Duties: There are no stamp duties or capital charges on share capital
• Broad Double Tax Treaty Network: Sweden has an extensive range of double taxation treaties

More about business taxation in Sweden.

Norway

Norway doesn’t have specific incentives targeted solely at U.S. entrepreneurs or self-employed individuals. This means that getting a residence permit based on your own business in Norway is unlikely to succeed. You will most likely need to start with finding employment in Norway first.

???????? Norway’s Business Setup Catch-22

Common question: “I want to open a business in Norway and move there to work for it. Do I need to set up the business before applying for my residence permit?”

The challenge: Yes, you must establish the business structure first—but Norwegian immigration authorities (UDI) cannot guarantee your residence permit will be approved. This creates significant risk for US entrepreneurs.

Two pathways available:

• AS Company Route: Establish a Norwegian AS (private limited company), have it offer you a genuine job, apply as “Skilled worker with an employer in Norway”
• Sole Proprietor Route: Register as sole proprietor (enkeltpersonforetak), apply as “Self-employed person with a company in Norway”

⚠️ The risk: You invest time and money setting up the business structure without certainty of residence permit approval. If denied, you’ve established a Norwegian company you cannot legally work for.

???? Our advice: Unless you have strong personal ties to Norway, consider alternatives like the Netherlands (DAFT treaty with €4,500 minimum) or other countries with entrepreneur-friendly visa programs that don’t require upfront business establishment.

More information: UDI skilled worker requirements

— Thomas Jaques, NordicHQ
Considering Norway vs other Nordic options? Contact us to evaluate which pathway fits your situation best.

Denmark

Rules

• Startup Denmark Scheme
• Positive list for skilled labor

Incentives

• Entrepreneurial tax scheme
• Funding through Innovation Fund Denmark

Finland

Rules

• Startup permit required
• Business plan and €100,000 investment

Incentives

• Government grants for innovation
• R&D tax incentives

France

Relocation to France for US entrepreneurs

France Talent Passport: Designed for highly-skilled professionals and allows for self-employment. Requires proving ‘economic interest’ to France, which can be substantial business revenue or job creation.

Spain

Residence in Spain

The traditional entrepreneur routes apply, with increasing focus on innovative startups and digital nomads.

Incentives

The “Beckham Law,” officially known as the Spanish Tax Regime for Inbound Expatriates was designed to make Spain more attractive for high-earning foreign professionals by offering tax advantages. Under this regime, foreign workers who move to Spain to work for a Spanish employer pay taxes only on their Spanish income at a flat rate of 24% (up to €600,000, then 47% above), rather than their worldwide income.

Key updates (2026):

• Valid for 6 consecutive tax years
• Foreign income is not taxed in Spain
• Prior residency requirement reduced from 10 to 5 years (must not have been Spanish tax resident in last 5 years)
• Now includes digital nomads and remote workers (since 2023 Startup Law)
• Must work at least 85% in Spain
• Cannot own over 25% of a Spanish company (for directors)
• Must apply within 6 months of obtaining Spanish social security number or digital nomad visa

Eligibility:

• Move to Spain for employment with Spanish company or foreign company’s Spanish branch
• Not a Spanish tax resident in previous 5 years
• Meet English language requirements where applicable

The Beckham Law doesn’t in itself grant the right of residence. To live and work in Spain, you still have to secure the appropriate visa and residence permit separately.

???????? ???????? Switzerland vs Netherlands: Which Should You Choose?

These two countries consistently rank as top choices for US entrepreneurs relocating to Europe. Both offer political stability and strong business environments, but their approaches differ significantly.

Choose Switzerland if:

• Privacy and banking infrastructure are top priorities
• You need flexibility with physical presence requirements
• You have significant capital (CHF 400K-1M+ annual lump-sum tax OR CHF 1-6M business investment)
• You’re comfortable navigating canton-specific regulations and tax negotiations
• You can commit to 183+ days per year in Switzerland

Choose the Netherlands if:

• You want a straightforward process (DAFT treaty makes entry easier for US citizens)
• English-language business environment is crucial
• Lower initial investment works better (€4,500 minimum via DAFT)
• EU market access and central European location matter
• You qualify for the 30% ruling (making 30% of income tax-free for 5 years)

Key differences: Switzerland offers lump-sum taxation based on living expenses (not income), but you cannot work there. The Netherlands allows you to run and work in your business, with the 30% ruling providing significant tax relief for those earning €48K+ annually.

???? Common mistakes: Rushing decisions based on external pressures, underestimating tax planning importance, not considering family adaptation needs, and trying to pursue multiple countries simultaneously. Even fast-track options take months.

— Thomas Jaques, NordicHQ
Need help choosing between Switzerland and the Netherlands? Contact us for personalized guidance on your relocation strategy.

Switzerland

Relocation & incentives

The Swiss lump-sum taxation scheme, also known as “forfait fiscal,” is a special taxation regime for certain wealthy foreign individuals who take up residence in Switzerland but do not engage in any gainful activity there. The taxation is not based on income or assets but on a negotiated lump sum that typically relates to the taxpayer’s living expenses in Switzerland.

The Swiss lump sum taxation system allows cantonal (regional) authorities to issue a residence permit based on fiscal interest. This system is primarily designed to attract wealthy foreign nationals to reside in Switzerland. The cantonal authorities negotiate a lump sum tax agreement with the individual, typically based on their living expenses. Once this is agreed upon, the individual pays that amount annually in lieu of standard income and wealth taxes. If the authorities determine that the individual’s fiscal contribution will benefit the canton, they may grant a residence permit. This is a mutually beneficial arrangement: the individual enjoys a more favorable tax situation, while the canton gains a new, financially beneficial resident.

Other notable incentives:

• Patent boxes
• Various R&D (tax) incentives across different cantons

Other Notable Options

Estonia e-Residency: While not a visa or residency program, it allows global entrepreneurs to manage an EU-based business online. Ideal for digital nomads and online businesses.

“Digital nomad” visas for tech freelancers: Many European countries now offer these, making it easier for remote workers to establish legal residence while working for non-European employers.

Contact us directly for personalized guidance on DAFT applications, Dutch BV incorporation, 30% ruling applications, and strategic advisory for establishing your business in the Netherlands or other European jurisdictions.