What does a company bicycle mean?
A company bicycle means that you buy or lease the bicycle through your company and use it for both business and private use. You have to use the bike at least ten per cent for business purposes. The company pays for the bike and all costs, but because you also use it privately, a fixed addition of 7% of the consumer price per year applies. You add this addition to your profit, on which you pay income tax. So you enjoy convenience and a fair tax break.
Tax benefits
The business bicycle offers several tax benefits. The main ones are cost deduction, VAT refund and investment allowance. As a result, you pay less tax and benefit from tax breaks. Below you can read briefly how each benefit works and when it applies to you. This makes choosing a company bicycle clear and financially attractive.
Deductible expenses
The purchase and usage costs are deductible from your profit. The bike is depreciated over five years, usually twenty per cent per year. Maintenance, insurance and accessories also fall under business expenses. If you opt for leasing, you may deduct the monthly instalments in full.
VAT refund
You can reclaim VAT on the purchase and maintenance if preload. If you use the bike partly privately, deduct only the business part or make an annual adjustment. That way, you end up only getting the VAT back on the business use.
Investment deduction
If you invest more than €2,900 in business assets in one year, you may small-scale investment deduction apply. In 2026, that is 28% up to around €70,000 in investments. For eco-friendly bikes, such as a speed pedelec, environmental investment deductions may apply on top of that.
Addition
Since you may also use the bike privately, the tax authorities see this as a benefit. Therefore, a addition of seven per cent of the consumer price including VAT and accessories. You add that amount to your profit, then pay income tax on it. This way, private use is easily and fairly taxed without administration.
For example, a €2,000 bike has an additional taxable income of €140 per year. At a tax rate of 37 per cent, you pay about €52 tax per year. So you ride the same bike privately and for business for just a few euros a month.
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 each business kilometre you are allowed to deduct €0.23 from your profit in 2026, this is the kilometre allowance. This also applies to commuting kilometres. You do not have to make a VAT adjustment, but you are also not allowed to deduct maintenance or accessories. Do keep a simple trip registration at to prove business mileage.
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 | Yes, including maintenance | No |
| VAT refund | Yes, in part or in full | No |
| Investment deduction | Possible at higher purchase | Not possible |
| Addition | 7% from consumer price | No |
| Mileage allowance | Not allowed | €0.23 per km |
| Administration | Depreciation and additional taxes | Track journeys only |
The business bike is especially beneficial for high business mileage or a more expensive e-bike. You benefit from VAT refunds, depreciation and investment deductions. If you cycle little or use a cheap bike, a private bike with mileage allowance is simpler and often just as beneficial.
Bike business lease
Leasing a bicycle is also covered by the company bicycle scheme. You pay a fixed monthly fee that often includes maintenance and insurance. This makes leasing attractive for entrepreneurs who do not want to invest all at once. The seven per cent additional tax rate also applies here, just as it does for purchases.
Advantages and disadvantages
Advantages of leasing:
- No high acquisition costs all at once
- Maintenance and insurance often included
- Costs deductible monthly
Disadvantages of leasing:
- Over maturity slightly more expensive due to interest
- Contractual obligations and surrender charges
- No ownership with operating lease
Calculation example company bicycle
Situation: you buy an electric bike for €2,000 through your company.
| Calculation | Amount | Notes |
| VAT refund | €347 | 21% VAT refund via return |
| Depreciation (5 years) | €331 per year | 20% of net €1,653 |
| Tax benefit depreciation | ~€122 per year | 37% from €331 |
| Maintenance costs | €150 per year | Deductible |
| Maintenance tax break | ~€56 per year | 37% from €150 |
| Addition (7%) | €140 per year | 7% of €2,000 |
| Tax on additional taxes | ~€52 per year | 37% from €140 |
You save €178 a year in deductions and pay €52 via the addition. So the net benefit is €126 a year. Over five years, this yields €630 tax benefit, plus €347 VAT refund: together €977 benefit. That's almost half the purchase price of the bike.
