What does a company bicycle mean?
A company bicycle is a bicycle you buy or lease through your business and use both for business and privately. You must use it for business purposes at least 10% of the time. The business pays for the bicycle and related costs. Because it is also available for private use, an annual taxable benefit of 7% of the recommended retail price applies. You add that amount to your profit, on which you pay income tax. The outcome depends on your costs, usage and tax position.
Tax benefits
A company bicycle can affect your profit expenses, VAT deduction and investment deduction. Assess these components separately: entitlement to one deduction does not automatically mean that the other applies as well.
Deductible expenses
Depreciate the purchase cost over the expected useful life, using a justified residual value and up to 20% of the purchase cost per year. A five-year period and twenty per cent per annum are only appropriate if the correct assumptions are made. Business expenses for maintenance, insurance and accessories may also be deductible.
With operational lease, you record the business lease payments as expenses. With financial lease, you assess depreciation and interest separately; repayment is not an expense. For the depreciation method, also view our example of depreciation of an asset.
VAT refund
When used for VAT-taxable turnover and with a suitable invoice, VAT on purchase and maintenance can be deductible as input VAT. If you use the bicycle partly for private purposes, you either deduct only the business portion or make an annual adjustment. Deduction only applies to use for taxed turnover; the small businesses scheme (KOR) and exempt activities, among other things, may preclude deduction.
Investment deduction
In 2026, the small-scale investment deduction is 28% for total qualifying investments from €2,901 up to and including €71,683. A bicycle does not automatically qualify; check the conditions for each business asset.
MIA applies only if the investment meets a code on the Environmental List for the investment year. The checked RVO Environmental List 2026 does not provide a separate entitlement for an ordinary speed pedelec. Specific codes and conditions exist for certain heavy electric cargo bikes. Do not automatically assume an environmental investment benefit.
Taxable benefit for private use
For a company bicycle that is also available for private use, the annual tax-assessed value is 7% of the recommended retail price, including VAT. Do not automatically add separately purchased accessories to this basis. The additional tax liability increases your taxable profit; it is not the amount of tax you actually pay. You should also take into account VAT and the recording of business expenses.
There is an exception for shared bikes that are used solely for commuting and are parked at your home or place of residence for no more than 10% of the time. Check whether your situation meets these criteria. The official explanation regarding the company bicycle differentiates the self-employed rules from a bicycle scheme for employees.
Private bicycle for business use
You may also use your private bicycle for business trips. The bike remains privately owned, but you may include business mileage as an expense in your records. This way, you can still enjoy tax benefits without investing. This is especially interesting if you make few business kilometres or use a simple bicycle.
Mileage allowance
For every business kilometre you may deduct €0.25 from your profit in 2026, this is the kilometre allowance. The rate applies retrospectively from 1 January 2026; for 2025 it was €0.23. This also applies to home-to-work commuting kilometres. Aside from this per-kilometre amount, you do not deduct the purchase cost, maintenance or accessories for the profit. The choice regarding VAT is assessed separately; any VAT deduction and private use adjustment do not automatically follow from the choice for income tax. Do, however, keep a simple trip registration to substantiate your business kilometres.
Compare business bike vs private bike
The comparison below shows the main differences between a business bike and a private bike.
| Aspect | Business bicycle | Private bicycle |
|---|---|---|
| Purchase | Paid for by your company | Paid from private assets |
| Expenses deductible | Costs and depreciation subject to conditions | In 2026 €0.25 per business kilometre; no separate bicycle expenses in addition |
| VAT refund | Assess separately: invoice, taxable turnover, VAT choice and private use | |
| Investment deduction | Possible with a qualifying investment and a sufficient annual total | Not possible |
| Taxable benefit for private use | In principle, 7% of the recommended retail price including VAT | No |
| Mileage allowance | Not allowed | €0.25 per business km in 2026 |
| Administration | Depreciation and taxable benefit for private use | Track journeys only |
Compare your purchase or lease costs, residual value, maintenance, business kilometres and tax position. An expensive bicycle or high mileage does not automatically make either option cheaper. With a private bicycle, you deduct an amount per business kilometre. With a company bicycle, actual costs and the taxable benefit for private use enter the calculation.
Bike business lease
Leasing a bicycle also falls under the company bicycle scheme. You pay a fixed monthly amount, often including maintenance and insurance. This may suit entrepreneurs who do not want to pay the full purchase price upfront. The same 7% addition to taxable profit for private use applies as when buying.
Advantages and disadvantages
Advantages of leasing:
- No high acquisition costs all at once
- Maintenance and insurance often included
- Under operational lease: business instalments as expenses
Disadvantages of leasing:
- Total lease costs may turn out higher than buying
- Contractual obligations and surrender charges
- No ownership with operating lease
Calculation example company bicycle
Suppose you have a company bicycle with a recommended retail price of €2,420 including VAT available for private use as well throughout the entire year. The shared bicycle exception does not apply.
| Calculation | Amount |
|---|---|
| Recommended retail price including VAT | €2.420 |
| Annual addition to taxable profit: 7% × €2,420 | €169,40 |
€169.40 increases your taxable profit. This is not your tax bill, nor is it the total cost of cycling. For the full financial difference, you also need to factor in purchase or lease, residual value, depreciation, maintenance, deductible VAT, and your tax position.
Would you like to have the processing of your company bicycle included in your bookkeeping? Check what is included in Van Passe's package.
