Belgium to reduce tax deductibility for electric company cars from 2027

Tax regulations for electric company vehicles in Belgium are set to change significantly starting in 2027. Currently, electric vehicles enjoy high tax deductibility, but a phase-out scenario will see these benefits decrease annually. From 2027, the maximum deductibility for electric cars will drop to 95%, followed by 90% in 2028, eventually reaching 67.5% by 2031.

To secure current maximum deductibility for both the vehicle and its operating costs, companies must sign lease contracts or purchase orders by the end of 2026. The tax regime is determined by the date the contract is signed rather than the vehicle's delivery date. Experts advise businesses to plan their fleets early to avoid market pressure and logistical delays.