Greening company cars in 2026: what will this mean for you?
Of course, you have already heard about the greening of company cars from 2026. But what will be the impact of this reform? This is what you need to know.
1. Benefit-in-kind and CO2 contribution
The way in which the benefit-in-kind (BIK) is calculated remains unchanged. With a reference CO2 coefficient that is adjusted downwards every year – in view of the accelerated greening of the fleet – the benefit-in-kind will be higher and higher for cars that emit CO2. It will remain stable for cars that do not emit CO2.
The CO2 contribution (at the employer’s expense) will rise significantly – to more than 500% – for cars that still emit CO2. For electric and hydrogen models, the increase will be limited to 50%.
2. The big milestones
Zero-emission cars (i.e. electric and hydrogen cars) will still qualify for 100% deductibility and a favourable benefit-in-kind as long as they are ordered before 1 January 2027 (on the basis of a lease contract or purchase order). After this date, deductibility will gradually decrease to 67.5% on 1 January 2031. In any case, only zero-emission cars will be deductible for orders placed after 1 January 2026.
Plug-in hybrids ordered as of July 1, 2023, will remain 100% deductible through 2024. Starting in 2025, their deductibility drops 25% per year to zero in 2028. PHEV ordered as of January 1, 2023, are subject to a limited 50% deduction for fuel costs.
All other engines (diesel, gasoline, CNG, self-charging hybrids, etc.) ordered as of January 1, 2026, will no longer be deductible.
3. Charging stations
At home. If you install a home charging station at your own expense (as a private individual), then you may receive tax relief:
- Smart and controllable charging station: the charging time and capacity must be controllable.
- Maximum amount of EUR 1,500 per charging point and per taxpayer.
- 45% tax relief from 1 September 2021 to 31 December 2022, 30% in 2023 and 15% from 1 January 2024 to 31 August 2024.
- Installation at the home address of the taxpayer.
- Green electricity.
At the office. Companies may benefit from an increased cost deduction for the installation of charging stations. The conditions are as follows:
- Charging stations that are freely accessible to third parties at least during the company’s opening and/or closing times.
- Verification of the location and availability of the charging stations by notifying the FPS Finance and by registering them on the eafo.eu website.
- Smart and controllable charging stations.
- 200% deduction of costs from 1 September 2021 to 31 December 2022 and 150% from 1 January 2023 to 31 August 2024.
