Company car or your own car: which works out better?

Updated 22 September 2026

The trade-off is the same in every country, even though the names differ. Two numbers decide it: the price of the car and how much of your driving is private.

Put the car in the business and the real costs become deductible, but private use gets taxed. Keep it private and you claim a flat amount per business kilometre instead. Which is better comes down to two numbers.

Your own car

You count a fixed amount per business kilometre, and that amount already covers fuel, maintenance, insurance and depreciation. Simple, little administration, and attractive when the car is cheap or already written down.

A company car

All real costs are deductible, including depreciation, but you pay tax on the private benefit. Every country has its own version: bijtelling in the Netherlands, the one-percent rule in Germany. Each also has a way out if you can prove your private use is low, and that proof is a mileage log covering the whole year.

A rule of thumb

An expensive car driven mostly for work favours the company car. A modest car with a lot of private use favours keeping it private. In between, run both calculations once before you commit, because in most countries you are locked in for the year.

This is general information, not tax advice. Rates change and your situation may differ. If in doubt, ask your accountant or check your national tax authority.

Questions that come up

Read on

• Mileage rates across Europe: 11 countries compared
• What a compliant mileage log has to contain