Buy or lease a company bicycle
Bikes are a normal part of Dutch society. Also for work or business travel. You can save money on company bicycles (fiets van de zaak). There are tax benefits for business owners, whether or not they have staff. Read on to find out what schemes are available and which ones you can use.
Schemes for company bicycles
There are 5 different tax schemes for a fiets van de zaak. You can use them to get a bicycle, electric bicycle, or speed pedelec for your company:
- Company Bicycle scheme for self-employed professionals
- Bicycle plan for employees or director-major shareholders (DGA)
- Using part of the gross salary
- Allowance per kilometre
- Interest-free loan
These schemes are described below.
The scheme you choose depends on your situation
You are a sole proprietor (a zzp'er) and want to buy a company bike for yourself. You can only use the Company Bicycle scheme.
You want to arrange a bicycle for your employee(s). You can use:
- Bicycle plan for employees or director-major shareholders (DGA)
- Using part of the gross salary
- Allowance per kilometre to cover the cost of the bicycle
- Interest-free loan to cover the cost of the bicycle
You are the director-major shareholder (DGA) of your BV or NV (public or private limited company). As you are an employee of your BV or NV, the same rules apply to you as to an entrepreneur with employees.
Company bicycle scheme for self-employed professionals
You buy or lease a bicycle with your sole proprietorship (eenmanszaak). That is permitted if you will use the bicycle professionally for at least 10% of your business travel.
Deductible costs for self-employed professionals
You can deduct the purchase price of the company bicycle from your profit. You do this by depreciating part of the price each year. This can be up to 20% per year. See how you calculate the amount of depreciation.
In addition, you may deduct other expenses for the company bicycle. For example, the costs of bicycle insurance, repairs, or accessories.
Paying additional tax liability (bijtelling)
As you can also use the bike for private use, you gain from having a company bike. In return, you pay an amount each year via your income tax: the additional tax liability for privtae use, or bijtelling. In your tax return, you add the additional tax liability to your profit. The additional tax is 7% of the suggested retail price of the bike.
No additional tax liability for commuting
You do not pay bijtelling for a bike that you use only for commuting, such as a public transport bike, a hub bike, or another shared bike. You may keep such a bike at your home only very rarely, for a maximum of 10% of the time. This rule applies retroactively up to and including 1 January 2020.
Deducting VAT
You can deduct VAT on the purchase cost and separate costs for the bike as input tax in your VAT return. This is only possible for the part of your turnover that is subject to VAT (in Dutch) and for which you have used the bike. For example, if you work as a self-employed lawyer and cycle to your clients and business meetings.
If you also use the company bicycle for private purposes (mixed use), there are different ways of dealing with VAT. Read more about VAT deduction when there is mixed use (in Dutch).
Investment credit
Are you buying a company bicycle? If so, you may be able to make use of the small-scale investment credit (KIA). This comes on top of your other deductions. Learn more about the KIA and whether you can use it.
Are you buying an electric (cargo) bike for the business? Then you may be eligible for an environmental investment allowance (MIA). Learn what you need to comply with.
Company bicycle scheme for employees or directors
You buy or lease a bicycle for your employees. Or for yourself, as director (= employee) of your company. The employee may use the bike for private use without limit. They are not required to use the bike for commuting.
Paying additonal tax (bijtelling)
For the purpose of payroll taxes, the value of the bicycle is 7% of the suggested retail price. This is the bijtelling.
You add the bijtelling to the gross annual salary of your employee. Over the amount of this addition, you withhold wage tax / national insurance contributions per tax period.
You also pay employee insurance contributions and the employer’s contribution to the Health Insurance Act (Zvw) to the Netherlands Tax Administration on the bijtelling. As a result, your employee will receive a slightly lower net salary. The director and major shareholder (DGA), does not pay any employee insurance contributions on the bijtelling. And you deduct the Zvw contribution from the net salary.
No additional tax liability for commuting
You do not pay bijtelling for a bike that you use only for commuting, such as a public transport bike, a hub bike, or another shared bike. You may keep such a bike at your home only very rarely, for a maximum of 10% of the time. This rule applies retroactively up to and including 1 January 2020.
Calculation example
The suggested retail price of the bicycle is €2,000.
The additional tax liability per year is 7% of €2,000 = €140.
The employee pays wage tax and national insurance on the additional tax liability (bijtelling). To find this amount, use the formula: tax rate × the additional tax liability.
Your employee has a gross annual salary of €35,000. This is subject to a tax rate of 35.70%. So, the wage tax and national insurance contributions are: tax rate of 35.70% × the extra tax of €140 = €50.
For 2026, this means that the employee pays €50 in wage tax and national insurance contributions on the bijtelling. That works out at €4.16 per month for this bicycle.
Does your employee also pay a contribution?
In that case, you can deduct the monthly contribution from the amount of the additional tax liability. Please note: you may not deduct more than this amount.
Keep the additional tax liability untaxed for your employee
You can also make sure that the bicycle costs your employee nothing. You do this by using the work-related costs scheme (werkkostenregeling) for the amount of the additional taxable liability. You then include the amount in your payroll records as a final-levy wage (eindheffingsloon). This is salary for which you, the employer, pay the wage tax. This way, the amount remains untaxed for your employees. However, you must be under the available limit or ‘discretionary scope’ for the work-related costs scheme. Otherwise, you will pay an 80% final levy on the amount of the additional tax liability. You must state the final-levy wage in each tax return period.
Read more about the discretionary scope and the final levy at 'Calculating the final levy under the work-related costs scheme' in theTax Administration's Payroll Taxes Handbook (handboek loonheffingen, in Dutch).
No tax-free kilometre allowance for bicycle scheme
Have you bought or leased the bicycle for your employee under a company bicycle scheme (fietsplan)? Then this employee will not receive an untaxed mileage allowance for commuting by bicycle. You can still give your employee a tax-free allowance for commuting by public transport or by car.
Deductible costs for employers
Do you pay for the bicycle for your employee? Then you can deduct the costs from your profit. You do this with an annual depreciation. Find out how to calculate the amount of depreciation (in Dutch).
VAT on bike purchase is deductible for employers
Is the bicycle used for commuting to and from work? Then VAT is deductible for a maximum of €130, i.e. a bike of €749 (incl. VAT). So, if a bike costs €749 or less, you can deduct all VAT paid. Does a bike cost more than €749? Then you may deduct €130 of VAT. To do this, you must meet all the conditions (in Dutch). For example, you must not have bought or leased a bike for your worker in the current calendar year or in the 2 prior years. Otherwise, you will not be able to claim the VAT back, either in full or in part.
Using part of the gross salary
With the gross / net allowance, your employee pays a portion of their gross income. For that portion, they receive an allowance to buy a bicycle. You indicate this allowance as the final-levy wage. You do not pay tax over this, as long as you stay within the discretionary scope of the work-related costs scheme. Because the amount is deducted from the gross salary, you and your employee pay less wage tax and premiums.
Calculation example
One of your employees wants to buy a bicycle. They have a gross monthly salary of €4,500. The bicycle costs €1,250. You convert €1,250 of your employee's gross salary into an allowance for purchasing the bicycle. You do this by deducting that amount from his gross salary. You can do this in one go or spread out over several months within the same calendar year.
Normal month for your employee:
- Gross salary €4,500
- Taxed at 40% (€1,800 in tax)
Net in their account: €2,700
Month of bicycle purchase:
Your employee will receive a net payment of €1,250 in their account. This allowance is deducted from the gross salary.
- Gross salary (€4,500 - €1,250) = €3,250
- Taxed at 40% (€1,300 in tax)
- Remains: a net salary of €1,950
- Total in employee's account €1,950 + €1,250 = €3,200
Your employee will receive €500 more than the 2,700 they normally receive. The tax savings of 40% on €1,250 amount to €500.
You designate this compensation of €1,250 as the final-levy wage (eindheffingsloon). You do not pay tax over this amount as long as you stay within the discretionary scope. Also, you pay less employee insurance premiums and employers' levy: over €3,250 instead of over €4,500.
Tax-free kilometre allowance
Your employee can also finance the bicycle with a tax-free kilometre allowance. In that case, you reimburse your employee per commuted kilometre commuting. Reimbursements of up to €0.25 per kilometre are untaxed.
Interest-free loan
You lend your employee an amount to buy a bicycle. Because your employee repays this amount, it is not deducted from the discretionary scope. The employee can also repay the loan with the untaxed kilometre allowance.
Example
You lend your employee €1,500 for a bicycle. They will receive an allowance of €0.15 per kilometre for a home-work journey of 4 kilometres. That is a compensation of €1.20 per working day. They then repay the loan in about 5 years.