Company car or private car as a freelancer in the Netherlands

Updated on 3 August 2026 · 6 min read

Put the car in the business or keep it private? One of the most asked questions among Dutch freelancers, and it really is a calculation: business means deducting costs but paying "bijtelling", private means a fixed allowance per business kilometre. Here is the trade-off.

The trade-off in short

A company car means all car costs (fuel or charging, insurance, maintenance, depreciation) are deductible and part of the VAT can be reclaimed. In return you pay bijtelling, an addition to your taxable profit, as soon as you also drive privately. A private car is simple: you deduct nothing, but book a tax-free allowance for every business kilometre. Rule of thumb: expensive car and lots of driving favours business; cheap car with many business kilometres often favours private.

Bijtelling on a company car

Drive more than 500 private kilometres per year and the tax authority adds a percentage of the list price to your profit. The 2026 rates:

SituationAddition
Petrol, diesel, hybrid (first registered 2017 or later)22% of list price
First registered before 201725% of list price
Electric, first registered 202618% up to € 30,000, 22% above
Youngtimer (over 15 years old)35% of market value

For electric cars the reduced rate of the year of first registration applies for 60 months. Note that bijtelling is extra profit, not a tax amount: what it costs depends on your bracket. The bijtelling calculator works out the net effect.

No bijtelling? Then prove it

Stay under 500 private kilometres per year and the addition lapses, but only with a complete trip log as evidence: every trip with date, addresses, odometer readings and type. See the guide on mileage log requirements.

Private car: € 0.23 per business kilometre

Keep the car private and you book € 0.23 per business kilometre as an expense in 2026. The allowance is tax-free and covers everything; deducting more is not allowed even if your real costs are higher. You only need to log business trips, not all driving.

Make it a calculation

The winner depends on purchase price, yearly kilometres, private share and profit. The company car or private calculator compares both options with the 2026 figures.

How Finq helps

If you drive privately (or business without bijtelling), everything depends on your kilometres. Finq logs trips with addresses and automatic distances, and books the allowance as an expense in one click. This is general information, not personal tax advice.

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