What is writing off a laptop?
When depreciating an asset, you spread the purchase costs of a business laptop over the years in which you use it. This generally applies to purchases of €450 and over with multi-year use. A cheaper laptop can usually be processed directly as expenses. The business application and deductible VAT determine the amount you process.
Operating assets
Capital assets are durable items that you use for your business, such as a laptop. Whether you depreciate them also depends on the purchase value. Keep the invoice and record when you start using the device and what proportion is used for business purposes.
Investment or cost threshold of €450
Under €450 you can usually process business purchases directly as expenses. At €450 or more and with multi-year use, you generally place the laptop on the balance sheet and depreciate it. Calculate without VAT that you can reclaim; non-reclaimable VAT is part of the acquisition value. Assess related components that form a single business asset collectively.
What are costs?
Expenses are expenses that belong entirely to the year in which you incur them. They do not last for several years and you may charge them directly to profit. A laptop below the threshold amount falls under this category and therefore does not appear on the balance sheet.
Depreciation of laptop in 3 or 5 years
You calculate the depreciation using the purchase cost, residual value and expected useful life. Normally, you may write off a maximum of 20% of the purchase price per year. Writing off a laptop with no residual value in full over three years does not fit within this framework. Five years is a common example; this is no reason to ignore the residual value or the actual useful life. Alternative schemes have their own conditions.
How much depreciation per year
Example: purchase €1,500, expected residual value €300 and useful life five years. The annual depreciation is (€1,500 − €300) / 5 = €240. If you put the laptop into use on 1 October, for the first year that is 3/12 × €240 = €60. Use the official calculation for depreciation.
VAT directly deductible
VAT can be deductible when used for taxed turnover and with a suitable invoice. The invoice date determines the return period. Private use and exempt turnover can restrict the deduction; in the case of KOR you do not reclaim any VAT. Non-deductible VAT is part of the purchase costs. Read the terms and conditions for input VAT.
Small-scale investment deduction
Do not confuse the threshold per asset with the total annual investment. For KIA, an individual asset must generally cost at least €450. In 2026, the annual table starts at €2,901 in qualifying investments. A laptop does not have to cost more than €2,900 on its own. For example, a €1,500 laptop plus €1,500 of other qualifying investments totals €3,000; at 28%, the KIA is €840. This is an additional profit deduction, not a €840 refund. Check the exclusions and other conditions in our explanation of small-scale investment deduction and the KIA table 2026.
Recording the laptop in your accounts
A laptop with a threshold of €450 and intended for multi-year use generally goes on the balance sheet as an investment. You record the purchase and reduce its value each year by the depreciation amount. You process the depreciation in your profit and loss account so that your profit is lower in the years you use the laptop. If you sell or remove the laptop from the business, you compare the book value with the proceeds and process the difference as a profit or loss. In the event of a sale within five years, a clawback may apply if you previously received investment tax relief.
Choosing best business laptop
The best business laptop suits the type of work you do and how intensively you use the device. Consider software requirements, mobility and how much reliability you need. That way, you will make a choice that fits your day-to-day and can last for years without any problems.
What to look out for when choosing:
- Performance such as processor, memory and storage
- Weight and battery life for mobile use
- Robustness and reliability in intensive use
- Securing your business data
- Manufacturer's warranty and service
Frequently Asked Questions
What if I sell my laptop before it depreciates?
On sale, you compare the selling price with the book value and recognise the difference as profit or loss. With previous investment deductions, a portion may come back.
What happens if I buy a new one?
A new laptop becomes a new investment with its own depreciation. You process the old laptop through sale or private use and the difference with the book value counts in your result.
