Is bike leasing tax deductible?
Bike leasing is gaining popularity among both employers and employees. No surprise there: besides its mobility and sustainability benefits, bike leasing is also highly tax efficient – not to mention the positive impact on your health!
But how does tax deductibility for bike leasing actually work? Forget the jargon: below you’ll find a clear explanation of the benefits for employers and employees.
Is bike leasing tax deductible for employers?
Yes, bike leasing is tax deductible for employers. The costs incurred by an employer for bike leasing can be fully deducted as professional expenses.
This applies not only to the lease cost of the bike itself, but also to related expenses such as:
- Charging electric bikes
- Charging infrastructure
- Bicycle parking facilities
- Maintenance costs
These costs are 100% deductible, provided the bike is actually used for commuting. In addition, VAT on bike leasing is also deductible, creating an extra tax advantage.
On top of that, bicycle leasing costs fall outside social security contributions, making it even more attractive for employers to include bike leasing in their benefits package.
Is bicycle leasing fiscally advantageous for employees?
Yes, bike leasing also offers clear tax advantages for employees. When an employer provides a bicycle through a lease scheme, it is not considered a taxable benefit in kind. In other words, bicycle leasing is not a benefit in kind and as an employee, you do not pay additional taxes on it. The only condition: you must actually use the bike for commuting. Otherwise, you may need to declare it in your tax return .
3 key tax breaks for employees at a glance:
- No tax on private use: your lease bike is not taxed as a wage benefit.
- Savings on net salary: if the lease cost is deducted via a gross salary swap (cafeteria plan), you save on payroll tax and social contributions.
- Combine with bike allowance: in many cases, you can still receive a tax-free bike allowance of up to €0.35 per kilometre (2024).
These tax benefits make bike leasing an increasingly attractive and cost-effective mobility solution for both employers and employees. Employers can deduct the full cost, including related expenses such as charging points and parking. Employees benefit from a tax-friendly scheme with no extra tax on private use, while still enjoying the possibility of a bike allowance.
Are you considering offering bike leasing to your employees? Our experts are happy to talk you through it
