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Deductions
Business car: buy, lease or drive privately?
Written by Ilias4 min read
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. 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, cars 15 years or older, an addition of 35% over the appraised value applies.
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. 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.
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.
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