DAFT Renewal After 2 Years: Build a File the IND Can Actually Approve

DAFT renewal is usually straightforward when your administration is current and your documentation is tidy. It gets painful when the story is scattered across a bank app, email attachments, and a bookkeeping file that is months behind.

This guide is built for real life. You will get a practical system for proving business activity, protecting invested capital on paper, and filing on time without scrambling.

Scope note: Expat Advisory provides planning, education, and coordination. We do not provide legal services, file immigration applications on your behalf, file taxes, or execute investment transactions. Always confirm your requirements against the official IND pages and current IND forms before acting.

The renewal checks that matter: The IND states that for extensions based on a treaty it requires annual accounts and a balance sheet or income statement to check whether the company has been active and whether the invested capital remained in the business. Build your entire file around those two checks, and renewal becomes predictable.

In this article

Quick start: what to do this week

If you only have time for one productive hour this week, do these three things. They create momentum and reduce risk quickly.

1) Create your evidence folder. Make one folder called DAFT Renewal File with subfolders for Bank Statements, Invoices, VAT, Financial Statements, and Activity Evidence. Your goal is simple: save a small set of PDFs every month so the story is easy later.

2) Get a balance sheet today. Ask your bookkeeper (or your software) for a current balance sheet. Find the equity line (often eigen vermogen). That number, not your bank balance, is what keeps you safe when liabilities build.

3) Reserve VAT and taxes. If you charge VAT, stop treating it like spendable money. Reserve it so it does not become a liability surprise later. Even if you do not owe VAT, the habit keeps your cashflow stable.

The mindset that makes renewal easier

Renewal feels hard when you treat it like a one-time exam. It becomes easy when you treat it like operations. You are proving two facts with documents, and those documents come from your administration.

This is also fair. Most DAFT businesses are normal small businesses. Many are consultants, freelancers, or solo service providers. The IND is not asking you to look impressive. It is asking you to be verifiable.

A simple standard for your files

Imagine a stranger opens your folder and has ten minutes. Can they understand what the business is, see steady activity across the period, and confirm invested capital stayed in the business? If yes, your system is working.

Timeline and filing window (plus late filing risk)

Timing prevents avoidable problems. The IND states the self-employed residence permit is valid for a maximum of 2 years. Plan renewal like a normal deadline, not a surprise.

The IND extension page is also clear about when you can apply: you can apply for extension when your residence permit expires within 3 months. If your permit is still valid for more than 3 months, you cannot submit the extension application yet.

Late filing risk: The IND advises applying while your permit is still valid. If the validity has just expired, the IND says to submit the application no later than 4 weeks after expiry to prevent a residence gap. It also states that a residence gap can delay eligibility timing for permanent residence or Dutch citizenship.

The same extension page states the IND must take a decision within 90 days for this type of extension. Your best move is to submit a complete, coherent file so you do not create delays through missing documents or unclear financial statements.

When Your objective What you should actually do at your desk
Months 0 to 2 Build the foundation Separate business and personal transactions, set up bookkeeping, and create a folder structure that you will actually maintain. Start saving monthly PDFs immediately.
Months 3 to 6 Make activity visible Invoices, contracts, payments, recurring admin. Save one or two strong proofs per month so the activity looks steady, not random.
Months 7 to 18 Maintain equity and control liabilities Run a monthly close. Track equity and keep a buffer. Reserve VAT and taxes so liabilities do not grow quietly.
Months 19 to 21 Assemble the renewal pack Request interim financials early. Fix issues while you still have time. Do not wait until the filing window opens to discover your bookkeeping is messy.
Within 3 months of expiry File the extension on time Submit inside the allowed window. Keep a PDF copy of what you submitted and when.

What the IND checks for treaty-based renewal

For treaty-based extensions, the IND states it requires annual accounts and a balance sheet or income statement. It uses those documents to check whether the company has been active and whether invested capital remained in the business.

This is why bookkeeping quality matters so much. Those documents are outputs. If your bookkeeping is behind, incomplete, or full of mixed personal spending, your outputs look messy even if the underlying business is fine.

Fair framing: Small businesses get renewed. Uneven revenue can still be renewed. The risk is usually not “too small.” The risk is that the reviewer cannot verify activity or cannot see invested capital clearly because the documentation is inconsistent.

Business activity: what counts in practice

Think of “business activity” as an evidence trail. A real business leaves marks: invoices, payments, contracts, recurring admin, platform profiles, proposals, and business expenses that make sense. You do not need a massive volume of paperwork. You need consistency over time.

If you had a slow start, that does not automatically mean failure. Many people spend time setting up, building a pipeline, or refining their offer. What matters is that you can show a credible trail of operations and activity across the full period.

Evidence type What it proves What “clean” looks like
Invoices and matching payments You deliver services or products and get paid. Sequential invoice numbers, consistent format, payments that match invoices, PDFs stored in one place.
Contracts or engagement letters Your work is structured and real. Dated agreements that align with invoice dates. If you work informally, save a simple engagement email as a PDF.
Business bank statements Business cashflow is visible and separable. Monthly statement PDFs. Cleaner separation from personal spending makes renewal easier.
VAT returns and confirmations (if applicable) Ongoing compliance and recurring administration. Filed on time when required, including a zero return where applicable. Save confirmations as PDFs.
Curated operational proof You are actively running the business. One or two strong items per month: a proposal, a portfolio update, a platform statement, or a client email thread saved as PDF.

A simple habit that works: once per month, save one strong “activity proof” PDF into a folder called Activity Evidence. Consistency beats volume.

Invested capital remained: why equity matters more than cash

This is the renewal concept people misunderstand most. DAFT is not “keep €4,500 cash untouched forever.” The IND describes the requirement as a substantial capital investment, and it states that for most business forms it requires a minimum investment of €4,500. At renewal, it checks whether invested capital remained in the business.

In practice, “invested capital remained” behaves like an equity question. Equity is the net value of your business: assets minus liabilities. That is why your bank balance is not a safe compliance number by itself. You can have cash and still have liabilities that push equity below the minimum.

Desk rule: Track equity (often shown as eigen vermogen) at least quarterly, ideally monthly. Keep a buffer above the minimum so normal liabilities do not push you below the threshold on paper.

Here is what changes equity over time: profits and losses, owner withdrawals, and liabilities. VAT payable and taxes due are common liabilities that quietly accumulate. This is why many people feel surprised later. They were watching cash, but they were not watching liabilities and equity.

Simple snapshot Assets Liabilities Equity (assets minus liabilities) What it means
Case A €4,500 cash €0 €4,500 Clean, easy story.
Case B €4,500 cash €900 VAT payable €3,600 Bank balance looks fine. Equity is below the threshold.
Case C €2,000 cash + €2,800 receivable €200 payable €4,600 Cash is lower, but equity is safe because assets are real and liabilities are controlled.

One nuance for clarity: taking on debt does not automatically reduce equity at the moment you borrow, because you also receive an asset (cash). The risk is what happens after. If liabilities rise and cash is spent without profit or durable assets, equity can fall. For most DAFT holders, the safest path is a simple balance sheet and predictable liabilities.

If you are behind: a 2-week catch-up plan

If your bookkeeping is behind or your documents are scattered, you are not doomed. You just need a focused sprint that produces usable outputs. The goal is to get current once, then maintain monthly.

Days 1 to 3: Export missing bank statements as PDFs and file them by month. Download invoices from email and platforms and file them by month too.

Days 4 to 7: Reconcile and categorize the backlog. Attach receipts where needed. You are aiming for completeness and clarity, not perfection.

Days 8 to 10: Generate interim financials (profit and loss and balance sheet). Identify equity and the liabilities that matter most, like VAT payable and taxes due.

Days 11 to 14: Correct the obvious issues. Create reserves, pay what is due where appropriate, and commit to a monthly close going forward.

Once you are current, renewal becomes far easier. The backlog is the painful part. Clear it once, then protect yourself with monthly maintenance.

The renewal file: what to save so the story is obvious

A renewal file is not a random pile of PDFs. It is a structured story that is easy to verify. You want the reviewer to spend their time confirming facts, not decoding your organization.

The strongest renewal files are chronological and consistent. Invoices match bank deposits. Bank statements match bookkeeping. Bookkeeping matches the financial statements you submit.

Document Why it matters What “clean” looks like
Annual accounts Core treaty extension evidence for business activity. Prepared from reconciled bookkeeping, clear period, saved as a single PDF.
Balance sheet + profit and loss Used to assess activity and invested capital. Equity clearly visible, liabilities recorded, no obvious inconsistencies.
Monthly business bank statements Reality check and cashflow proof. PDFs for each month, with cleaner separation from private spending.
Invoices sent and received Supports revenue and expense reality. Sequential numbering for issued invoices, consistent format, stored in the same form you sent or received.
VAT returns and confirmations (if applicable) Compliance proof and recurring admin trail. Filed on time, including a zero return where required, saved as PDFs.
Lightweight client proof Reduces questions when revenue is uneven. A small curated set of contracts, engagement letters, proposals, or delivery proof.

File naming that prevents chaos

Use date-first filenames so your folders sort automatically. Example: 2026-03_BankStatement.pdf, 2026-03_VAT_Return.pdf, 2026_Q1_BalanceSheet.pdf. This is how you avoid wasting hours searching later.

What to ask your bookkeeper for (and when)

If you use a bookkeeper, make your renewal safer by being direct. Tell them you are renewing a treaty-based permit and the IND will check business activity and invested capital remaining. Then ask for the specific outputs that support those checks.

At least quarterly: profit and loss statement and balance sheet so you can see equity and liabilities early.

Before renewal filing: annual accounts, plus final P&L and balance sheet for the relevant period.

The question that protects you: “What is my equity today, and is it safely above the threshold after accounting for VAT payable and taxes due?”

If your bookkeeping is behind, fix that first. Everything else becomes easier once you can see the real numbers.

Administration rules: retention and invoice discipline

Even if you only care about renewal, you still need to care about administration because it is a legal obligation. Business.gov.nl states you must keep business records for at least 7 years, and data related to immovable property for at least 10 years. It also notes that if you stop running your company, you are still required to keep the basic details for the set length of time.

This is also practical. A clean admin system makes renewal easier because you can generate credible financial statements quickly. Your goal is not to hoard everything. Your goal is to retain what you are required to retain, in a way you can retrieve and explain.

Invoice discipline matters: Business.gov.nl states invoices are part of business records, invoices must be kept for 7 years (10 years for invoices relating to immovable property), and you keep invoices in the same form you sent them. This is exactly the kind of rule that keeps your renewal file credible.

One more desk tip: do not rely on “I printed it once” as your retention system. If your records are digital, keep them digitally and keep them accessible. Your future self wants PDFs in folders, not a memory of what existed.

VAT and cashflow: how liabilities sneak up on you

VAT is one of the most common reasons equity drops quietly. The mechanism is simple: money arrives, it feels like it is yours, and later you remember some of it belongs to the tax system. If VAT payable builds up, it becomes a liability. Liabilities reduce equity.

Business.gov.nl makes two important points clear. First, you must always file a VAT return, even if you had no turnover in a period. That is called a zero return (nihilaangifte). Second, if you participate in the small businesses scheme (KOR), with a few exceptions you no longer have to file a VAT return. The practical takeaway is not “everyone files VAT forever.” The takeaway is: know your VAT status and keep liabilities predictable.

Simple VAT habit: When revenue hits your account, move the VAT portion into a separate reserve pocket. Treat it as not yours. This single habit prevents many renewal problems because it keeps liabilities controlled.

The 45-minute monthly close that keeps you safe

This is the system I recommend because it is small enough to maintain. It produces the renewal file automatically and reduces equity surprises because you see liabilities early.

Step 1: Reconcile. Categorize all bank transactions and attach receipts where needed. Credible financial statements start here.

Step 2: Export and save. Save the monthly bank statement PDF. Export a monthly P&L and balance sheet PDF. Put them in your folders.

Step 3: Check equity and liabilities. Confirm equity is comfortably above the threshold and review liabilities like VAT payable and taxes due.

Step 4: Reserve cash. Move VAT and tax reserves so you do not spend money that will later appear as a liability.

Step 5: Save one activity proof. One invoice, one contract, or one paid invoice confirmation. Consistency beats clutter.

Do this for two months and it starts to feel normal. Do it for twelve months and renewal becomes boring in the best way.

How to file on time and avoid a residence gap

Timing is part of compliance. The IND states you can apply for extension when your residence permit expires within 3 months. It also states you should apply while your permit is still valid. If your permit has just expired, the IND says to submit the application no later than 4 weeks after expiry to prevent a residence gap.

The same IND page states it must take a decision within 90 days. Plan like a professional: treat the last month before expiry as “submission month,” not “fix my bookkeeping month.”

Strong rule: If your financial statements are not ready when the filing window opens, pause and fix that first. A complete, coherent pack saves time and reduces back-and-forth.

Common renewal problems and clean fixes

Most renewal issues are not dramatic. They are ordinary admin failures that compound. The upside is that ordinary admin failures are preventable once you have a system.

Problem Why it happens Clean fix
Scrambling late No monthly maintenance, so the file does not exist until the end. Run the monthly close and save PDFs as you go.
Equity dipped below the threshold Liabilities built up, losses accumulated, or withdrawals were too aggressive. Track equity, reserve VAT and taxes, and keep a buffer above the minimum.
Activity looks uneven Work happened but documentation is missing or scattered. Curate one or two strong proofs per month and file them consistently.
Invoices and receipts are scattered Files live in email and phone photos, not in a system. Monthly folder habit and retention discipline. Keep invoices in the same form you sent or received.
VAT confusion Missed deadlines or failure to file when turnover is zero. Confirm your VAT schedule and file a zero return when required, or confirm KOR participation if applicable.

If you recognize yourself in one of these, do not spiral. Fixes are usually straightforward when you catch them early. The hard part is not the rules. The hard part is running a simple system consistently.

Next steps and DIY resources

DAFT is designed to be approachable. The best outcome is that you stay DIY, stay organized, and get reliable answers when you need them. That is why we built a DAFT resource hub and a DIY companion option for people who want a second set of eyes without buying services they do not actually need.

DAFT Resources Hub: /portal/daft/

DAFT DIY guide: /portal/daft/diy-guide/

DAFT DIY Companion: /daft-diy-companion/

Financial advisory packages: /financial-advisory/

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Author: lloydnapier

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