With the tightening of tax rules on company cars, some executives are considering using their private vehicles and being reimbursed via a mileage allowance. But this strategy is not always advantageous.
Expense deduction: increasingly strict rules
For non-electric vehicles, deductibility depends on the date of acquisition:
- 🚗 Before July 2023: deduction according to standard tax formula
- 🚗 Between July 2023 and the end of 2025: limited deduction (50% in 2026, 25% in 2027)
- 🚗 F rom 2026: no further deductions possible
👉 This limitation applies to all car-related expenses, including mileage allowances.
Kilometric allowance: beware of preconceived ideas
Being reimbursed for kilometers driven in your private car does not allow you to escape these restrictions.
➡️ If the vehicle is not tax-deductible, neither is the allowance for the company.
➡️ Buying a hybrid car privately in 2026 and charging for kilometers does not therefore bring any tax benefits.
When can it be interesting?
Using your private vehicle only makes sense in certain cases:
- ✔️ if the car is older (before July 2023)
- ✔️ or if it’s 100% electric
In these situations, the deduction may still be more favorable than for a recent car owned by the company.
Amount of compensation
The company can reimburse business travel based on an official rate:
- 💰 approx. €0.44/km (based on rates applicable in 2026)
Good to know
If your company already provides a car, it’s often more attractive to use it privately as well.
👉 The taxable benefit remains the same, regardless of actual use.
Conclusion
👉 Using your private car is not a miracle solution.
This choice is only relevant in specific cases (old or electric vehicle).
In most situations, it’s essential to analyze the overall structure before making a decision.