What is a Youngtimer?
A youngtimer is an older car that can be attractive for business use due to the addition to income for private use based on the fair market value. For the tax arrangement in 2026, the general rule is that the car must be older than 16 years. Age alone is not enough to determine whether driving it for business is advantageous.
Transitional arrangement in 2026
Were you already using the car in 2025, and was it more than 15 years old on 31 December 2025? If so, the additional tax liability of 35% of the market value will continue to apply in 2026. See the conditions of the Netherlands Tax Administration for 2026.
What is the Youngtimer scheme?
Under the youngtimer scheme, the taxable benefit for private use is calculated as 35% of the current market value instead of the original list price. This amount is added to taxable profit, rather than being the tax bill itself. The lower valuation basis can make an older car attractive for business use.
By way of comparison: for newer cars, the standard additional tax liability is 22% of the list price. This can make a difference of thousands of euros per year. The applicable percentage for a newer car also depends on the date of first registration and any transitional rules.
How does the taxable benefit for private use work?
If you also use your business car privately (more than 500 km per year), you will have to deal with addition. For a regular (new) car, it is usually 22% of the catalogue value. That amount is added to your income, and you pay tax on it.
So for a youngtimer, a higher percentage applies (35%), but because it is over the much lower daily value, you are still cheaper in many cases.
Additional taxable benefit for Youngtimers
A youngtimer can benefit from a lower valuation basis: the taxable benefit is calculated using its current market value. At a value of €6,000, the annual calculation is 35% × €6,000 = €2,100. This is added to taxable profit; it is not a tax bill. For a full year, €2,100 is equivalent to a gross taxable benefit of €175 per month. The actual tax depends on your personal tax calculation.
Example of additional taxable income for Youngtimer
In the example below you can clearly see the difference between the benefit-in-kind of a newer car and a youngtimer. We assume that both cars are used for business purposes throughout the entire year, that the youngtimer meets the age condition for the entire year, and that more than 500 kilometres are driven privately.
| Car | Value | Addition rate | Addition per year |
|---|---|---|---|
| Car 5 years old (catalogue value €40,000) | € 40.000 | 22% | € 8.800 |
| Car older than 16 years (market value €6,000) | € 6.000 | 35% | € 2.100 |
The difference in the calculated additional tax liability is €8,800 − €2,100 = €6,700 per year. This does not represent a net saving of €6,700. Using a purely illustrative tax rate of 37%, the difference would be €2,479. In reality, factors such as your income, tax deductions, tax credits and health insurance contributions also come into play. Furthermore, for a self-employed person paying income tax, the adjustment is capped at the cost of the car. You should therefore also take into account maintenance, insurance, fuel and depreciation.
Advantages of a youngtimer
Driving a youngtimer can offer you many benefits as an entrepreneur. Not only do you benefit from a lower additional tax liability, but also from deductible costs and the fact that the market value is reassessed every year. Whether you drive more cost-effectively on balance depends on the total costs and the applicable annual regulations.
Low additional tax rate
A lower current market value can reduce the amount added to taxable profit for private use. This does not, by itself, determine the total annual cost of the car.
Deducting costs from profits
All business expenses for your youngtimer, such as fuel, maintenance, insurance and depreciation, may be deducted from your profit. This can further lower your tax burden. Take private use into account. Compare the tax treatment with business kilometres in a private car.
New addition each year
Use a substantiated current value. This can fall, but for some cars it can also rise. Therefore, do not automatically count on a lower amount each year and take the change for 2027 into account.
Disadvantages of a youngtimer
The youngtimer scheme can give you considerable tax benefits, but there are also drawbacks to consider. Older cars often involve higher maintenance costs and tend to be less fuel-efficient than modern models. In addition, many youngtimers have higher emissions, which can affect your fuel costs and possibly future environmental regulations.
VAT correction youngtimer (margin scheme)
If you buy a youngtimer that was sold as a margin car, you cannot reclaim VAT on the purchase price. VAT on maintenance and use is deductible insofar as it relates to VAT-taxed business activities. If you also use the car privately, a separate VAT adjustment may be required. This is different from the addition for income tax. You can read more about this in our article about the margin scheme.
Buying a youngtimer
Buying a youngtimer is more than just a smart tax choice. It also requires you to look critically at the condition of the car and the costs involved. Pay attention to things like maintenance history, mileage and available parts. Good preparation will prevent your tax advantage from being swallowed up by unexpected repairs.
Which youngtimer suits you?
Compare specific cars on maintenance history, condition, fuel consumption, insurance terms and total costs. A model name is no proof of reliability or tax benefit. Have a pre-purchase inspection carried out and check what the 2027 age limit means before buying.
Youngtimer leasing
Leasing is an option if you do not want to invest in a car yourself or are afraid of high maintenance costs. With operational lease, you pay a fixed amount per month, including maintenance and insurance. Financial lease is more suitable if you want to end up owning the car. Check what is included in the contract. Especially with financial lease, maintenance and value risk can remain your responsibility. The fiscal age conditions remain relevant.
Insurance
Insuring a youngtimer often requires customisation. Many insurers offer special youngtimer-insurance, often based on assessed value. This prevents you from being paid only the low market value in case of damage. It is wise to compare quotations, because the conditions differ between insurers. Pay extra attention to things like purpose of use (private/business), age of the driver and annual mileage.
Determining daily value
The current market value is the basis for your additional taxable value. You can have this value determined via an independent appraisal report or consult price lists of the ANWB of BOVAG. Support the value with data that matches the condition and specification of your car. A price guide or valuation does not guarantee automatic acceptance. The tax basis is the open-market value: what you would normally receive when selling the car.
What changes in 2027?
Under the current rules, the age limit will change to 25 on 1 January 2027. The House of Representatives wants to amend this change. A political intention is not yet a definitively amended law. Therefore, check before purchase or lease which rules have actually been adopted. Status checked: 14 September 2026. See the current explanation on Ondernemersplein.
Compare maintenance, depreciation, fuel, insurance and tax consequences over several years. Read how to assess buying a car for business and private use . Our explanation of addition helps with the calculation.
