Private lease for self-employed professionals

The number of privately leased cars in the Netherlands was around 235,000 at the end of 2023. Private lease can be interesting for zzp'ers (self-employed professionals without staff), instead of using a private car for business trips or buying a company car.

What is private lease?

Private lease means you as a private person lease a car for a fixed amount per month. This amount covers the cost of depreciation, insurance, motor vehicle tax, repairs, maintenance, and tyres. You pay for fuel and any traffic fines. In the event of damage, you pay an excess (eigen risico in Dutch). The leasing company remains the owner of the car. You lease the car for a minimum of 12 months and a maximum of 60 months. After that, you return the car. 

Are you self-employed and considering private lease? It is good to know that there is a difference between private lease and business lease. With private lease, you may not deduct the lease costs as a business expense. You can do this with a business lease. Do you also use the car for private purposes? With business lease, you have to file an addition for private use (‘bijtelling’) in your income tax return. If you lease a car for private use, there is no addition.

What makes private lease interesting?

Money remains available for your business

Savings that you reserve for the purchase of a vehicle can be used for something else. For example, business growth or private expenses. If you choose private lease, the leasing company purchases and owns the vehicle. You pay a fixed amount to the leasing company every month.

Security of expenditure

With the private lease contract, you have a clear overview of what you spend each month. You do not have to worry about unforeseen costs, such as repairs or changing tyres. The only additional costs are fuel, traffic fines, or damages costs ('eigen risico').

No high interest for loans

If you have no savings to buy a vehicle, private lease may be a better option than taking out a loan. These types of loans often have high interest rates.

Tax benefits for entrepreneurs

If you use your vehicle for business purposes, you can avoid an addition for private use ('bijtelling') by taking out a private lease. You conclude the lease contract privately. In 2024, this allows you to deduct €0.23 per business kilometre from your profit as travel costs.

Lease a used car

Do you think that a new vehicle is too expensive? Or do you think that you will not use your vehicle often? Then you can save money by leasing a used vehicle.

Good to know

Influence on mortgage

Are you planning to buy a house? Keep in mind that lease obligations reduce your maximum mortgage loan amount, just like other repayment obligations. For example, with a monthly lease obligation of €400, you can borrow several tens of thousands of euros less.

BKR registration for car lease

If you enter into a private lease contract, this will be registered with Stichting BKR (in Dutch). This registration does not have to be a disadvantage. If you meet your financial obligations every month, your future lenders will conclude that you are capable of handling your financial responsibilities.

Kilometre bundle

You choose a kilometre bundle depending on how many kilometres per year you plan to drive. Kilometres that fall outside the agreed bundle are more expensive than kilometres that fall within the bundle. With fewer business kilometres you can deduct less tax.

Monthly instalments

The lease cost must be paid monthly. Since the lease conditions in the contract are very strict, private lease is not recommended if you have large monthly income fluctuations. A short-lease product may offer a solution, as this can often be cancelled every month.

Breach of contract

You cannot just cancel a lease contract. The costs of a breach of contract with a private lease are high. Relocation, divorce, or periods of few assignments often lead to the dissolution of the private lease contract. Tip: you can dissolve your contract free of charge with a pre-made protective construction, for which you pay extra. This gives you more flexibility.

Compare suppliers

There are many differences between private lease providers. Everyone does things slightly differently. Make a comparison and pay attention not only to the price. A low monthly rate seems attractive, but then you may have a high excess in case of damage, for example. Include the following contract terms in your comparison: replacement transport, amount of the excess in case of damage, and the additional costs if you exceed the kilometre bundle.

Climate agreement and private lease

The Climate Agreement is part of the Dutch climate policy. It is an agreement between organisations and companies in the Netherlands to further combat global warming. The aim is to reduce CO2 emissions by 49% by 2030. Because of this, there are more and more possibilities to lease private electric cars.

Subsidy Scheme Electric Passenger Cars Private Individuals (SEPP)

Have you considered private leasing an electric car? Driving a fully electric passenger car in the smaller or compact middle class via private lease can be advantageous. Check if you are eligible for the Subsidieregeling Elektrische Personenauto’s Particulieren (Subsidy Scheme Electric Passenger Cars Private Individuals or SEPP, in Dutch). This scheme is only open to private individuals. If you meet the conditions you are eligible to receive a one-off subsidy. The subsidy is available until 1 July 2025 and a fixed maximum amount is available each year.