Business car: buy, lease or drive privately?
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
In the business all car costs are deductible but you pay a 22% addition (18% electric up to € 30,000); keeping it private gives € 0.25 per business kilometre and no addition.
- Below roughly 10,000 business kilometres a year in an averagely priced car, keeping it private nearly always wins.
- The addition only lapses with a complete trip log showing at most 500 private kilometres a year.
- The € 0.25 per kilometre is all-in: fuel, maintenance, insurance, tolls and parking may not be added separately.
- For youngtimers the threshold since 2026 is older than 16 years, with a 35% addition on the market value.
A car for work always raises tax questions. Do you put it in the business or keep it private? Do you buy or lease? The answer depends on how much you drive and how you use the car. In this article we set out the main lines, so you can make a better decision.
What does a company car mean?
If you put the car in the business, the car costs such as fuel, maintenance and insurance are deductible from your profit; traffic fines never fall under that. In return, you face an addition (bijtelling) if you also use the car privately for more than 500 kilometres per year. That addition is added to your income.
How much is the addition in 2026?
For a car first registered in 2026, the addition is 22% of the list value. For fully electric cars a discount of 4% applies up to a list value of 30,000 euros. For so-called youngtimers the threshold since 2026 is older than 16 years; for those the addition is 35% of the market value.
When is driving privately more advantageous?
If you keep the car private and sometimes use it for business, you don't put costs in the business, but you may deduct a fixed mileage allowance for your business trips. In 2026 that allowance has been raised to 0.25 euros per kilometre, and it already covers fuel, maintenance, insurance, tolls and parking. For those who drive little for business or have an expensive car, keeping it private is often more advantageous than the addition.
Buy or lease?
When buying you capitalise the car on your balance sheet and depreciate it over several years. With operational lease you pay a fixed monthly amount and the lease costs are deductible. Leasing gives calm and predictability, buying can be cheaper in the long run. Which option fits best depends on your cash flow and how long you want to keep the car.
Which choice suits you?
There's no standard answer. It depends on your annual mileage, the value of the car, your legal form and your ratio of business versus private use. A good bookkeeper calculates the scenarios for you, so you don't pay unnecessary additions or miss out on deductions.
The three routes side by side
There are really three flavours: buying the car on the business, business leasing, or keeping it private and claiming kilometres. Which wins depends on three things: your business mileage, the car's price and your private use.
| Buying on the business | Business lease | Keeping it private | |
|---|---|---|---|
| Costs deductible | Everything, plus depreciation | Lease payments in full | Only € 0.25 per business km |
| VAT reclaim | Yes, with an annual private-use correction | Yes, likewise | No |
| Addition | Yes, unless max 500 private km | Yes, likewise | None |
| Investment and risk | Own money or financing, residual value with you | Fixed monthly amount, no residual risk | No business investment |
| When attractive | Many business km, keeping the car long | Predictable costs, no hassle | Few business km or a cheap car |
The tipping point in practice
Rule of thumb: below roughly 10,000 business kilometres a year in an averagely priced car, keeping it private with the mileage allowance nearly always wins, because the addition disappears. With high business mileage, an expensive car or an electric car with a reduced addition, it tips towards the business. Calculate the addition itself in calculating the addition.
Frequently asked questions
When does a company car beat keeping it private?
Roughly with high business mileage, a pricier car or a low addition. With little business driving, keeping it private at 0.25 euros per kilometre nearly always wins, since there is no addition.
Can I reclaim VAT on a business car?
When bought on the business, yes, in proportion to VAT-taxed use. For private use you declare an annual correction, usually 2.7 per cent of the list price. On a margin-scheme car there is no VAT to reclaim.
What is the difference between financial and operational lease?
With financial lease you are the economic owner: the car sits on your balance sheet and you depreciate. Operational lease is rental: one monthly amount, all-in, no residual risk. For tax, financial lease resembles buying.
May I deduct fuel and maintenance on a private car?
No. The 0.25 euros per business kilometre covers everything: fuel, maintenance, insurance, depreciation. Deducting separate car costs on top is double-dipping and fails in an audit.
Can I avoid the addition?
Yes, with a complete trip log showing at most 500 private kilometres a year. It is strict: one forgotten private trip can sink the log. See mileage records.
Can I move my current private car onto the business?
Yes, at its actual value at that moment, after which the addition and cost deduction apply. You do not retroactively recover the VAT on the original purchase. Check first whether it pays.
Sources
- Private use addition for cars 2026Belastingdienst · belastingdienst.nl
- Value of the car: youngtimers older than 16 yearsBelastingdienst · belastingdienst.nl
- Business use of a private vehicle: € 0.25 per kilometreBelastingdienst · 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.
