How much do I save with a company bike?

Savings depend on your salary, tax class, and bike price. Typically you save 15-40% compared to a private purchase. For an e-bike at €3,000 RRP with a €3,500 gross salary in tax class I, effective monthly costs are around €55-70 instead of the full lease rate of approx. €109. Over 36 months, this means savings of several hundred euros compared to the retail price.

What is the benefit-in-kind for company bikes?

Since 2020, the benefit-in-kind for bicycles and e-bikes (pedelecs up to 25 km/h) through salary sacrifice is only 0.25% of the RRP per month. For a €3,000 bike, that's €7.50 monthly that must be taxed additionally. S-pedelecs (over 25 km/h) are treated like company cars with the 1% rule. If the bike is provided on top of salary (no salary sacrifice), the benefit-in-kind for regular bikes and e-bikes is zero.

What happens when the lease ends?

After the lease term (usually 36 months), you have three options: 1) Buy the bike at residual value (typically 18% of RRP, e.g. €540 for a €3,000 bike). 2) Extend the lease at reduced terms. 3) Return the bike. Most users choose to buy, as the residual value is well below the actual market value.

Is a company bike worth it on a low salary?

Yes, you can still save even on a lower salary, though the tax savings are smaller. From around €2,000 gross salary, company bike leasing is usually worthwhile. Note however that salary sacrifice reduces your social-insurance-liable income, which can have a minor long-term impact on pension and sick pay entitlements.

What is the difference between E-Bike and S-Pedelec for company bikes?

E-bikes (pedelecs) assist up to 25 km/h and are classified as bicycles – no license, no mandatory insurance, and only 0.25% benefit-in-kind. S-pedelecs assist up to 45 km/h and are classified as mopeds – requiring a license plate, insurance, and 1% benefit-in-kind (like a company car). From a tax perspective, e-bikes are significantly cheaper.

Can I use the company bike privately?

Yes, private use is explicitly allowed and encouraged. This is one of the major advantages over traditional company car arrangements. You can use the company bike for commuting, shopping, sports, and leisure – without additional costs or restrictions.

Does salary sacrifice affect my pension?

Yes, salary sacrifice reduces your gross income subject to social insurance. This means you pay less into the pension system, which can affect your future pension entitlements. However, with a lease rate of €100 monthly over 36 months, the impact on your eventual pension is minimal (a few euros less per month). The immediate savings far outweigh this in most cases.

What does the company bike cost the employer?

With pure salary sacrifice (no employer subsidy), the company bike costs the employer nothing – they actually save money, as they don't pay social insurance contributions on the converted amount (about 20% of the conversion amount). The employer only has the administrative effort for the framework agreement with the leasing provider. A voluntary employer subsidy is an attractive benefit that is tax-deductible as a business expense.

Can I claim commute allowance despite having a company bike?

Yes! The commute allowance (€0.30 per km for the first 20 km, €0.38 from the 21st km) can be claimed regardless of whether you use a company bike. This applies to all means of transport. So in addition to savings from salary sacrifice, you can deduct the commuter allowance in your tax return.

How does insurance work with a company bike?

Most leasing providers (JobRad, BusinessBike, Lease-a-Bike, etc.) offer all-inclusive packages that include theft insurance, comprehensive coverage, pick-up service, and wear-and-tear repairs. Costs are typically €5-15 per month depending on the bike value and coverage scope. These costs are usually included in the monthly lease rate.

Company Bike for Self-Employed: Is It Possible — and How? | Company Bike Calculator

Can Self-Employed People Use a Company Bike?

Yes! Self-employed individuals, freelancers, and business owners can also benefit from the tax advantages of a company bike. The route is different from that of employees: instead of salary sacrifice, it is about business expenses and the 1% rule or private withdrawal.

Bicycle as Business Asset

If you use a bicycle or e-bike at least 10% for business purposes as a self-employed person, you can claim it as a business expense. With business use over 50%, it belongs to mandatory business assets; at 10-50%, it becomes optional business property.

Private Use: The Benefit-in-Kind

For private use of a business bicycle or e-bike, you have not had to pay any benefit-in-kind since 2019 — the tax exemption under Section 3 No. 37 EStG applies. Note: this only applies to bikes provided in addition to the normally owed salary. For S-pedelecs, the 1% rule applies.

Leasing for Self-Employed

As a self-employed person, you can directly sign a lease contract with a provider. The lease payments are then fully deductible as business expenses, provided the bike is used for business purposes. The common providers (JobRad, Lease-a-Bike, BusinessBike) also offer contracts for self-employed individuals and freelancers.

Advantages of Leasing Over Purchase

1. **Cash-flow friendly:** No large one-time investment, monthly payments from operating income. 2. **Full deductibility:** Lease payments are immediately deductible as business expenses — no depreciation over several years needed. 3. **Insurance included:** Most lease packages include comprehensive insurance and maintenance. 4. **Always current technology:** New bike possible after lease end.

Alternative: Purchase and Depreciation

If you buy the bike instead of leasing, you can depreciate it over the useful life. Bicycles and e-bikes are depreciated over 7 years (depreciation table, useful life since 2022). Alternatively, for acquisition costs below EUR 800 net, the rules for low-value assets (GWG) apply — allowing immediate write-off in the year of acquisition.

What Costs Are Deductible?

In addition to lease payments or depreciation amounts, as a self-employed person you can also claim the following costs as business expenses: repairs and maintenance, insurance, accessories (helmet, lock, lighting), and running costs for an e-bike (electricity for the battery). Keep receipts and document business use.

Travel Expense Claims

For business trips, you can claim actual costs or a flat rate (EUR 0.30 per kilometer for the first 20 km from 2026, EUR 0.38 from the 21st km). When using the company bike for client visits or other business trips, maintaining a trip log or at least a record of business kilometers is worthwhile.

Practical Tips for the Self-Employed

1. Document business use (trip log or records). 2. Check whether leasing or purchase is more tax-efficient — this depends on your tax rate and liquidity situation. 3. Combine the company bike with the commuter allowance for trips to the office. 4. Consider VAT: as a VAT-registered business, you can reclaim the VAT from lease payments.

Calculation Example for the Self-Employed

A freelancer with annual profit of EUR 60,000 (top tax rate 42%) leases an e-bike at EUR 4,000 RRP over 36 months. The monthly lease rate is about EUR 142 gross. As a business expense, they save 42% income tax + 5.5% solidarity surcharge + possible church tax = approximately EUR 60-70 in tax savings per month. The effective costs are about EUR 72-82 monthly. Over 36 months: approximately EUR 2,600-2,950 effectively for a EUR 4,000 bike. Plus buyout at about EUR 720 = total cost approximately EUR 3,320-3,670. The savings are lower than with employee salary sacrifice, but still about EUR 330-680 compared to the retail price.

Special Considerations for GmbH Managing Directors

GmbH managing directors can use a company bike both as employees (via salary sacrifice) and through the GmbH (as a business expense). The optimal model depends on the salary structure and shareholder status. In many cases, provision by the GmbH on top of salary is most favorable, as the 0% benefit-in-kind applies (for bicycles and e-bikes since 2019).

Company Bike and Home Office: Do They Go Together?

Yes! Even those who predominantly work from home can use a company bike. Private use is permitted and encouraged in all models. The bike does not need to be primarily used for business trips. For self-employed home workers, the company bike is excellent for client meetings, co-working spaces, and as active recreation from desk work.

Conclusion

The company bike is an attractive option for self-employed individuals and freelancers too. The tax treatment is actually simpler than for employees, as lease payments or depreciation are directly deductible as business expenses. The savings are somewhat lower than with employee salary sacrifice but remain clearly noticeable — especially at higher tax rates. Use our calculator for the employee perspective and consult your tax advisor for the optimal structure.