The Netherlands has always been something of a cycling mecca in Europe. It’s home to the capital of cycling, Amsterdam, with a landscape perfectly suited to two-wheel travel. With all the obvious positive impacts cycling can bring, we reveal three schemes the Dutch government have rolled out to incentivise people to join the cycling community.
1. Company Bicycle
The Company Bicycle scheme enables employees and entrepreneurs to lease a bike and use it privately. With your employer covering the cost of the bike, you will have 7% of the total RRP + accessories (Incl VAT) added to your annual salary. This, in turn, will lead to a marginal increase in the income tax you will pay at the end of each month.
Within this scheme, the employer can also ask whether you would like to contribute a little more so as to bring down the 7% added to your salary and, therefore, decrease the monthly contributions. Or, the employer could even also agree to cover the costs of the additions in full.
2. The Work-Related Costs Scheme (WKR)
The Work-Related Costs scheme (WKR) enables your employer to give you 1.18% off your wage bill as a tax-free allowance. This scheme has traditionally been used for company benefits such as gym subscriptions or Christmas packages, but can now be used for the tax-free usage of your e-bike.
3. Bicycle Kilometer Allowance
From January 1st, 2023, as an employee in the Netherlands you can claim a bicycle allowance of €0.21 per kilometer tax-free. This will increase to €0.22 in 2024. In addition, employers can also provide an interest-free loan for a new bike or e-bike purchase, which can be repaid through this monthly allowance.