Company car in Belgium or a neighbouring country – the differences in the benefit in kind

When an employee is also allowed to use his company car for private purposes, a taxable benefit arises. However, the calculation of this benefit varies greatly from country to country. We compare the most important rules for 2026 in Belgium, the Netherlands, France and Germany, with a particular focus on electric cars.

Please note: a lease car may have other financial consequences for the employer. For example, car expenses and fuel are often only deductible to a limited extent for the company, as is the VAT paid on them. These aspects are beyond the scope of this contribution.

Short summary The same company car can lead to a very different taxable benefit in the four countries. Electric cars are generally treated more favourably, but the extent and conditions of that benefit vary from country to country. For employees, the listing price, the date of first admission or posting, the commuting distance and the fuel scheme are particularly decisive.

 

Belgium

Calculation of the benefit in kind

Belgium considers any use of the company car that is not strictly professional as private use. As soon as an employee uses the car privately, a taxable benefit arises. In Belgium, the taxable benefit depends on the list price, the CO₂ emissions and the age of the car. Whether the employer also pays for the fuel for private travel does not affect the amount of the benefit.

The annual formula for the benefit is:

catalogue price including options and VAT actually paid × age percentage × CO₂ percentage × 6/7.

Discounts are not deducted from the list price. In addition, a minimum benefit of €1,690 per year applies for 2026.

The basis for the CO₂ percentage is 5.5% for the reference emissions for 2026: 70 g/km for petrol, LPG and natural gas and 58 g/km for diesel. For each gram above or below this reference value, the percentage shall increase or decrease by 0.1 percentage points. The percentage is a minimum of 4% and a maximum of 18%. This means that 4% applies to electric cars.

The list price that serves as the basis for calculation decreases annually by 6% from the first registration, to at least 70% from the sixth year.

Commuting

In the case of commuting, an indexed exemption may apply under certain conditions if the employee deducts the flat-rate professional expenses. In the table, we use € 500 per year as an illustration.

Other (para)fiscal consequences

No ordinary employee or employer contributions are due on the benefit. The employer does pay a CO₂ solidarity contribution. For an electric car, this will be €42.34 per month in 2026.

In addition, the employer must include 17% of the benefit as a disallowed expense. This percentage rises to 40% if the employer also bears the fuel costs for private use.

 

Germany

Calculation of the taxable benefit

In Germany, too, any travel that is not strictly business is considered private travel, including commuting. Because of this private use, a taxable benefit arises for the employee. This is usually calculated at a flat rate of 1% of the gross list price per month. A valuation based on the actual costs and private kilometres is possible, but administratively more difficult and unusual.

The benefit is subject to payroll tax and social security contributions. A personal contribution from the employee reduces the taxable amount. The payment of private fuel by the employer does not change the flat rate valuation.

The gross list price at first admission also remains decisive for a second-hand car. This means there is no age discount.

Every month started counts in full, even if the car is only made available at the end of that month.

Discount for electric and plug-in hybrid vehicles

Electric and certain plug-in hybrid cars will have a reduced valuation base, depending on their price, emissions, electric range and date of purchase or leasing.

For a purely electric car purchased or leased from 1 July 2025, 50% of the list price usually applies as the basis for valuation. If the list price is a maximum of € 100,000, only 25% will be taken into account. In that case, the monthly lump sum is effectively 0.25% of the list price.

For plug-in hybrids purchased or leased from 2025 onwards, the valuation base is 50% if the CO₂ emissions are up to 50 g/km or the electric range is at least 80 kilometres.

Commuting

For commuting, the monthly benefit is usually increased by 0.03% of the list price per kilometre (one way). For less than 15 trip days per month, 0.002% can be used per one-way journey. The employee must then register these journeys.

 

France

Calculation of the taxable benefit

In France, too, the private use of a company car generates a taxable benefit. This benefit can be calculated based on the actual costs, but employers usually opt for the flat-rate method. The benefit is subject to income tax and social security contributions.

The lump sum valuation differs depending on whether the employer has purchased or leased the car. The percentages below apply to vehicles made available from 1 February 2025. For older situations, earlier rates may continue to apply. In the case of leasing, the benefit is limited to this ‘purchasing method’.

For purchased cars, the age and compensation for private fuel are decisive:

 

In the case of rental or leasing, the benefit amounts to 50% of the total annual cost. If the employer pays for private fuel, these costs are added to the benefit. Alternatively, 67% of the total cost including fuel can be applied. In both cases, the benefit is limited to the amount that would apply to a purchased car according to the valuation rules (‘purchase method’).

Discount for electric and plug-in hybrid vehicles

For an electric car made available from 1 February 2025 and meeting the minimum French environmental score, the lump sum benefit will be reduced by 70%. This reduction is limited to an indexed maximum amount.

In the case of a calculation based on actual costs, a reduction of 50% applies, with a lower maximum amount.

Charging costs borne by the employer for private use do not constitute an additional benefit. It is different for fossil fuels.

Commuting

Commuting does not cause a separate additional benefit.

 

The Netherlands

Calculation of the taxable benefit

In the Netherlands, the taxable benefit is called the “bijtelling”. This is calculated on the list price including BPM (Tax on Passenger Cars and Motorcycles). Compared to the other countries, the addition is usually relatively high.

For a car with first registration in 2026, the standard addition is 22% of the list price. For a car older than 16 years, 35% of the market value applies.

If the employee demonstrably does not drive more than 500 private kilometres per calendar year, no benefit in kind is due. Commuting is considered business travel.

The addition is taxed through the payroll tax. A personal contribution for private use can reduce the amount.

Discount for electric and plug-in hybrid vehicles

For a fully electric car with first admission in 2026, 18% applies to the first € 30,000 of the list price and 22% to the part above that. The reduced percentage applies for 60 months. At the end of that period, the applicable rate will be redetermined.

Commuting

Commuting by company car counts as a business trip and does not give rise a supplementary benefit.

 

Comparison in numbers

Assumptions: the tables show the gross taxable benefits for 2026 and not the net tax cost for the employee. We assume a new car that is available to the employee for the entire year, without personal contribution and with a commuting distance of 20 km.

• Belgium: minimum taxable benefit and illustrative exemption of €500.
• Germany: flat-rate method and at least 15 commuting days per month.
• France: purchased car less than five years old, available from 1 February 2025; The electric car meets the environmental score.
• The Netherlands: first admission in 2026, more than 500 private kilometres and application of the 60-month rule.