Bicycle leasing: Nine steps to a company bike

How company bike leasing works

Step 1:

Ask your personnel office about the possibility of leasing a bicycle with salary conversion.

Step 2:

The company then concludes a 36-month framework agreement with a bicycle leasing provider. The leasing company takes over the organisation of the service bike, from ordering to maintenance and repair service.

Step 3:

Large leasing providers such as Eurorad.de not only offer a comprehensive selection of bikes and e-bikes, but also a dense network of bike dealers and workshops where you can pick up your company bike and have it serviced.

Provider of bike leasing:

• Eurorad Germany
• JobRad
• My service bike
• Business bike leasing
• Lease a bike

Step 4:

The employer concludes a contract with the employee allowing private use of the bike.

Step 5:

If employers provide their employees with a company bike for private use and bear the costs for this, they can deduct the acquisition costs or leasing instalments as business expenses for tax purposes.

Step 6:

If companies do not cover the leasing costs, employees can opt for salary conversion, i.e. the leasing instalment including insurance is deducted from their salary. This saves tax and social security contributions.

Step 7:

Employees must pay tax on the private use of a company bicycle at a rate of one per cent of the list price per month as a non-cash benefit. Advantage bike: Unlike a company car, a company bike is not subject to a surcharge of 0.03 per cent per kilometre for the journey from home to work. This does not apply to S-pedelecs, which travel faster than 25 km/h and are not considered bicycles by definition in Germany.

Step 8:

For the journey from home to work, business commuters can claim 30 cents per kilometre for each working day as a commuting allowance for tax purposes.

Step 9:

At the end of the contract, you can buy the bike or e-bike for around 15 to 20 per cent of the original list price.