Lease and Company Bicycle

In the Netherlands, there are several tax incentives aimed at promoting bicycle use, reflecting the country's commitment to sustainable transportation and environmental conservation. The 2 main mechanisms are the "fiets van de zaak' (sometimes called fietsplan) and a bicycle lease.

Fiets van de Zaak

The "Bicycle Commuting Allowance" (Fiets van de Zaak) allows employers to provide tax-free or tax-reduced bicycles to employees for commuting purposes. This benefit can cover the full cost of the bicycle or be provided as a subsidy for its purchase. Most employers will have a fixed amount that they will provide and this is then repayed monthly, typically over 3 years, using your brutto income.

This method approach typically save 40% on the cost of the bicycle. We are partnered with Fiscfree and you can see their online calulator here. Employers must have an account with Fiscfree which is free.

Bicycle lease scheme

This scheme allows employees to lease a bicycle through their employer, paying for it via a monthly salary deduction. The lease payments are made using pre-tax income, resulting in savings for the employee.

Under the Bicycle Lease Scheme, the bicycle is considered a company asset, and thus, it remains the property of the employer. This arrangement also includes maintenance and insurance, easing the financial burden on the employee. Additionally, at the end of the lease period, there's often an option to purchase the bicycle at a reduced price.

We are partnered with Lease a Bike and Hello Rider. Employers and/or self employed people must have an account with Lease a Bike which is free. Because the bicycle belongs to the employer it is not considered a fringe benefit under Dutch tax law. See the Lease a Bike calculator here.

Travel reimbursement

Additionally, employees who use a bicycle for commuting can receive a tax-free reimbursement of €0.23 per kilometer traveled. This reimbursement is not subject to income tax and can be a significant incentive for individuals to choose cycling as their mode of transport.