What are the bike lease terms for employers and employees?

Conditions for employers

If you want to offer bike leasing as an employer, you need to take certain conditions and obligations into account. Below, we outline some key points.

Tax deductibility 

The cost of bike leasing is up to 100% tax deductible for employers, provided the bicycle is used by the employee for commuting. Read more about the tax deductibility of bike leasing here.

Bicycle plan or bicycle leasing policy

It is important to formalise bike leasing arrangements in a bicycle plan or internal policy. This should cover conditions of use, maintenance, and what happens when an employee leaves the company.

Cost breakdown

Employers can either cover the full lease cost or (partially) pass it on to the employee, for example through gross payroll deductions or an end-of-year bonus.

Duration of the lease contract

A bike lease contract typically runs for 36 to 48 months. Additional fees may apply in case of early termination.

Want to know more about the specific conditions? Our sales team will be happy to provide tailored advice .

Conditions for employees

As an employee, you also need to take certain bike leasing conditions into account. 

Here are five elements that commonly apply in most bike leasing plans:

1. Regular use for commuting: the key condition is that the bike must be available for commuting, even if you also use it privately. Legally, there is no minimum number of commutes required to benefit from the tax exemption. However, some companies include a minimum number of commuting days in their cycling policy to ensure the bike is effectively used for work-related travel.
2. Gross pay swap or end-of-year premium: your employer decides whether the lease cost is paid via a gross payroll deduction or through your end-of-year bonus. This is only possible if the collective labour agreement allows it. If not, the cost can be deducted from your net salary – which is perfectly possible, but fiscally less attractive.
3. Good Housekeeping Principle: as an employee, you are responsible for keeping the bike in good condition and respecting the terms of the lease agreement.
4. Early termination fee: if the contract ends early – for example, due to resignation – an early termination fee may apply. What about your lease bike after you leave the company?
5. No benefit in kind: the tax authorities do not consider bike leasing to be a taxable benefit, which makes it especially attractive.

The benefits of bike leasing are clear, but you may still have questions such as: What is the workload for my HR department if we start bike leasing? As an employee, am I eligible for bike leasing? 

We’ll be happy to keep you informed!