Youngtimer as a company car: addition on the current value
Written by Ilias Aarrass6 min read · Published on · Last reviewed on 
In short
A company car older than 16 years carries an addition of 35 per cent of its current value instead of 22 per cent of list price; up to 2025 that threshold was 15 years.
- Age counts per month, from the date of first registration on the vehicle papers.
- Substantiate the current value with a price guide, a valuation or comparable listings, and update it annually.
- All car costs stay deductible, but many youngtimers are margin cars with no VAT to reclaim on purchase.
- Drive under 500 private kilometres a year with a complete trip log and there is no addition at all.
If you drive a regular company car, you pay the addition on the original list price, however old the car is. For cars older than 16 years an exception applies that can work out surprisingly well: the addition is 35% of the car's actual value, its current market value. Up to and including 2025 that threshold was still 15 years. A car that once cost 55,000 euros but is now worth 9,000 euros suddenly becomes far more affordable to drive for business. This article explains how the youngtimer scheme works, who it suits and what to watch out for.
How the youngtimer scheme works
The main rule for private use of a company car is an addition of 22% of the list price to your profit, every year again. See the article on calculating the addition for that basis. For the months in which the car is older than 16 years, counted from the date of first registration, a different basis applies: 35% of the fair market value, the current value. Not the original list price, but what the car is actually worth today.
The percentage is higher, but the basis is usually many times lower. That is exactly why a youngtimer can be attractive for tax: for older cars the current value is often only a fraction of the original price.
Worked example: an older estate versus the same car new
The difference is clearest when you compare the same car at two ages:
Worked example: 17-year-old car, list price € 55,000
- Current value today
- € 9,000
- Youngtimer addition: 35% of € 9,000
- € 3,150 per year
- For comparison, main rule: 22% of € 55,000
- € 12,100 per year
- Tax at 37.56%, after the SME profit exemption
- around € 1,030 instead of € 3,970
Result: In this example the youngtimer scheme saves nearly € 3,000 in tax per year compared with the same car under the main addition rule
All car costs remain deductible
If the car is a business asset, you deduct all costs from your profit: maintenance, fuel, insurance, road tax and depreciation on the purchase price. Precisely with a youngtimer those costs are often higher than for a young car, so that deduction matters. VAT on maintenance and fuel is deductible to the extent you use the car for business; for private use you make an annual adjustment via a fixed percentage. How that works is covered in private use of a company car and VAT. Note: many youngtimers are margin cars, bought without VAT on the invoice; there is then no VAT to reclaim on purchase either.
Who a youngtimer suits
The scheme works out well mainly in these situations:
- You also drive the car privately and do not want to keep a trip log: the low addition makes private use affordable.
- You drive relatively few kilometres, so the higher fuel use and maintenance of an older car have limited impact.
- You want to drive comfortably for business without new-car depreciation; the steepest drop in value has already happened.
- You do not mind substantiating the current value with a price guide, valuation or comparable listings.
Substantiating the current value
The tax authority may ask how you arrived at the current value. So record it when you put the car on the business, and update the value annually; a youngtimer that drops in value also lowers your addition. Useful substantiation: a price guide value, a valuation report, or a set of listings of comparable cars in year, mileage and condition. Keep those documents in your records. If you doubt whether the car should be a business asset at all, first read buying, leasing or driving privately.
Frequently asked questions
From when does a car count as a youngtimer for the addition?
From the day the car is older than 16 years, counted from the date of first registration. It works per month: in the year it reaches that age, the months before still count at 22% of list price and the months after at 35% of current value.
Does the 35% rule also apply to the VAT adjustment?
No. The addition is an income tax rule. For VAT you make a separate annual private-use adjustment, usually via a fixed percentage. If you bought the car without VAT, or the year of first use plus four years has passed, the lower 1.5% rate applies instead of 2.7%.
Is an oldtimer of 25 years or older even more favourable?
Not for the addition: 35% of current value applies there too. Classics rising in value can even be unfavourable, since a higher value means a higher addition. Separate road-tax schemes exist for oldtimers, but those are unrelated to the addition. Do bear in mind a proposal to limit the scheme to cars of 25 years and older from 2027; that is not final yet.
Can I still move my 17-year-old private car onto the business?
You make the choice between private and business assets at purchase, and it is then fixed. Only special circumstances, such as a clear change in use, allow revisiting it. Discuss this with your bookkeeper first; shifting afterwards quickly leads to disputes with the tax authority.
Sources
- Value of the car for private useBelastingdienst · belastingdienst.nl
- Private use addition 2026Belastingdienst · belastingdienst.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
