Electric company cars: are they the right choice for your business?

Key takeaways  

• In 2026, electric company cars are eligible for the maximum tax deductibility rate of 100%. 
• This maximum rate will gradually decrease from 2027, reaching 67.5% by 2031. 
• An electric company car can also reduce other tax and social security costs, including the CO₂ contribution, Benefit in Kind (BIK) and road tax. 
• Thanks to longer driving ranges and the growing network of charging stations, switching to electric driving has never been easier. 

Electric company cars: what incentives are available?  

Electric vehicles remain 100% tax deductible in 2026 

In 2026, electric company cars purchased or leased remain 100% tax deductible for both companies and self-employed sole traders. This maximum rate will then gradually decrease over the following years: 

• 95% by 2027 (assessment year 2028) 
• 90% by 2028 (assessment year 2029) 
• 82.5% by 2029 (assessment year 2030) 
• 75% by 2030 (assessment year 2031) 
• 67.5% by 2031 (assessment year 2032) 

What about combustion engine vehicles? Those purchased or leased since 1 January 2026 are no longer tax deductible, with the exception of certain plug-in hybrid vehicles used by self-employed sole traders. This loss of deductibility also applies to all related costs, including fuel, maintenance and insurance. In addition, genuine light commercial vehicles continue to benefit from their own, more favourable tax regime. 

Useful information 

• These rules apply whether the vehicle is purchased or leased. 
• Once determined, the tax deductibility rate remains the same throughout the vehicle’s lifetime. 
• The same deductibility rate applies to related costs, such as maintenance, insurance, tyres and electricity. 
• For purchased vehicles, the applicable rate is determined by the date of the purchase order. For leased vehicles, it is based on the date the lease agreement is signed. 
• The costs of installing a charging point are also 100% tax deductible until 2029, falling to 75% from 2030. 

Other tax and social security costs are lower for electric vehicles 

Self-employed company directors: a lower Benefit in Kind (BIK) 

When a company provides an employee or a self-employed company director with a vehicle that is also available for private use, this is treated as a Benefit in Kind (BIK). It’s added to their taxable remuneration and taxed accordingly. 

The value of this Benefit in Kind is calculated using a standard formula that takes the vehicle’s CO₂ emissions into account. As electric vehicles produce no tailpipe CO₂ emissions, their Benefit in Kind is generally lower than that of a comparable combustion engine vehicle, which means a lower personal income tax liability. 

Reduced CO₂ contribution for employers 

Similarly, employers who make a company vehicle available to an employee or a self-employed company director pay a higher CO₂ contribution (also known as the solidarity contribution) for a combustion engine vehicle than for an electric one. 

Road tax: lower rates, but with regional differences 

The vehicle registration tax and the annual road tax you pay also depend largely on the vehicle’s environmental performance and CO₂ emissions. As a result, for comparable models, an electric vehicle will generally cost less in road taxes than a combustion engine vehicle. 

As these are regional taxes, both the calculation method and the applicable rates vary depending on whether the vehicle is registered in Flanders, Wallonia or the Brussels-Capital Region. 

Battery life and charging: electric driving has never been easier 

Although electric vehicles often have a shorter range than their combustion engine counterparts, range is no longer a major concern for several reasons: 

• Battery technology continues to improve, and manufacturers now offer a wider range of electric vehicles with increasingly longer driving ranges. 
• Belgium’s public charging network is expanding rapidly. According to a BNP Paribas Fortis study conducted by research agency Data Synergy and published in January 2026, 95% of electric vehicle drivers are satisfied with the availability of charging stations in Belgium, compared with 76% in 2024. 
• A home charging station lets you charge your vehicle conveniently, quickly and safely – for example overnight. Want to know more about tax deductibility, installation costs and technical considerations? Read our guide to home charging stations. 
• Electric driving can also reduce your running costs. Electricity is often cheaper per kilometre than petrol, especially if you charge at home. If you generate your own electricity with solar panels, the savings can be even greater. 

An entrepreneur’s experience of switching to electric 

“People often told me about the stress of finding somewhere to recharge. But since switching to an electric car, I’ve never experienced that.” 

Storytelling and digital copywriting expert Karolien Van Bavegem shares her experience of replacing a combustion engine car with an electric vehicle. 

“I’ve been working in communication and marketing for almost 20 years. Around 10 years ago, I became a freelance copywriter before setting up my own company shortly afterwards.” 

Tax incentives encourage the switch to electric 

When it was time for Karolien to replace her company car, choosing an electric vehicle felt like the obvious next step. 

“I’ve been driving an electric company car since the end of 2025. I’d already been considering the switch for some time and had weighed up the pros and cons. The lower environmental impact of a zero-emission vehicle played an important role in my decision. But the changes to the tax rules for company cars gave me the final push. I also wanted to make the most of the 100% tax deductibility.” 

Charging and electric driving: easier than ever 

“I chose an electric model with a range of around 520 km, and that’s more than enough for both my business travel and longer journeys,” says Karolien. 

“From a practical point of view, everything has gone very smoothly. I have a charging card that has worked perfectly from day one, and the navigation system in my car makes it easy to find available charging stations. I’m also planning to install a home charging station. 

So yes, my transition to electric has gone perfectly smoothly. Even though I live in the countryside, there are plenty of charging points nearby, some within walking distance. I’ve never experienced the charging anxiety people often talk about,” Karolien concludes with a smile. 

FAQs about company cars and electric charging stations 

What financing options are available for an electric company car? 

Whether you choose to buy outright, take out a loan, finance lease or operational lease, discover the different ways to finance an electric company car in our dedicated article. 

How can I finance the installation of an electric charging station with BNP Paribas Fortis? 

Depending on your circumstances, you can finance the installation of an electric charging station with either an instalment loan or an investment loan. An instalment loan is often suitable for financing a single charging station, while an investment loan may be a better option if you’re planning to install several charging stations. 

What should you bear in mind before installing a charging station?  

• The installation should always be carried out by a qualified, authorised installer to ensure it complies with the applicable standards. 
• In Brussels, you must notify the network operator of the installation using Sibelga’s online form. In Flanders, the notification is made via Fluvius. If you’re based in Wallonia, check your network operator’s website for the relevant procedure. 
• Depending on the scope of your project, you may also need additional permits, such as planning permission. 

Is the enhanced 150% tax deduction still available for a publicly accessible charging station? 

No. This enhanced tax deduction is no longer available. However, self-employed sole traders and companies can still benefit from the tax deductibility explained above and elsewhere in this article. 

The federal government previously introduced an enhanced tax deduction of up to 200%, later reduced to 150%, to encourage businesses to install publicly accessible charging stations. This incentive applied only if the charging station was installed in a car park that was open to the public. The scheme was abolished for installations carried out after 31 August 2024.