Belgium’s electric company cars are approaching another fiscal turning point. From January 2027, newly ordered EVs will lose part of their generous tax deductibility for the first time.
Leasing company Ayvens estimates that postponing an order for 50 BMW iX1s until next year could cost the company almost €35,000 over five years.
But does that justify rushing fleet replacements before December 31? The answer is more complicated than the headline figures suggest.
One of Europe’s leasing giants
Ayvens is one of Europe’s largest vehicle leasing and fleet management companies. Created through the acquisition of LeasePlan by Société Générale’s ALD Automotive in 2023, the group manages around 3.1 million vehicles across 41 countries, including more than 500,000 electric vehicles.
Ayvens is particularly influential in the Benelux, where both former companies have long-established operations.
In the Netherlands alone, Ayvens managed approximately 245,000 vehicles at the end of 2025, while its Belgian operation accounted for around 151,000 leased vehicles in May of that year.
Together, the two countries account for close to 400,000 vehicles, underscoring the group’s considerable influence on fleet electrification and the European second-hand EV market.
A deadline worth €34,800?
Under Belgium’s company-car tax reform, fully electric vehicles ordered before the end of 2026 remain 100% tax-deductible throughout their use by the company or leasing customer.
For EVs ordered from January 1, 2027, that percentage falls to 95%, then to 90% in 2028, 82.5% in 2029, 75% in 2030, and finally 67.5% from 2031 onward.
Importantly, the applicable deduction percentage is determined by the order or leasing contract date, not the delivery or registration date. An EV ordered in December 2026 and delivered several months later can therefore retain the more favorable treatment.
To illustrate the consequences, Ayvens calculated the cost of leasing a BMW iX1 over 60 months and 100,000 kilometers.
Under its assumptions, the average monthly cost increases from €892.34 for a vehicle ordered in 2026 to €903.94 for the same vehicle ordered in 2027.
That is a difference of just €11.60 per month. But for a fleet of 50 vehicles, it translates into €6,960 annually, or €34,800 over five years.
Small percentages, significant budgets
“For fleet managers, timing is becoming a strategic factor,” says Xavier Kervyn de Meerendré, Communication Director at Ayvens.
The leasing company argues that even a relatively modest reduction in deductibility can affect total cost of ownership (TCO), particularly for companies operating large fleets.
However, the figures also deserve perspective. Ayvens’ €34,800 difference represents only around 1.3% of the fleet’s estimated five-year cost of more than €2.6 million.
The calculation is based on Ayvens’ own assumptions, which have not been fully disclosed. Changes in vehicle prices, lease rates, energy costs or manufacturer discounts could outweigh the tax difference.
A car ordered in January 2027 could even prove cheaper overall if a manufacturer introduces sufficiently attractive incentives.
Should companies replace their EVs early?
That raises a more fundamental question: does the approaching fiscal deadline justify replacing an electric company car that is still functioning perfectly well?
Not necessarily. Ending an existing lease prematurely can generate additional costs, while a new vehicle starts another depreciation cycle.
Modern EV batteries are also proving more durable than many early predictions suggested, allowing companies to consider longer replacement intervals.
Ayvens itself acknowledges this dilemma and recommends a differentiated approach. Intensively used vehicles may be candidates for earlier replacement, while others could remain in service longer.
The leasing company also reports growing interest in longer contracts, allowing customers to benefit from the existing tax regime over an extended period. It has not, however, provided figures demonstrating the scale of this trend.
Plug-in hybrids follow a different path
The reform also draws an increasingly sharp distinction between fully electric vehicles and models with combustion engines.
For companies subject to corporate income tax, newly ordered petrol, diesel and plug-in hybrid passenger cars have lost their fiscal deductibility since January 2026.
Self-employed individuals subject to personal income tax benefit from a separate transitional regime. Qualifying plug-in hybrids can still enjoy deductions of up to 100% when ordered in 2026, depending on their certified CO₂ emissions, with progressively less favourable rules thereafter.
Fully electric cars therefore remain the most attractive fiscal option for corporate fleets, despite the gradual reduction in their own deductions.
A potential year-end rush
The approaching deadline could also influence Belgium’s EV market beyond individual leasing contracts.
Companies already planning fleet renewals for early 2027 have an incentive to bring their orders forward, even if the vehicles are delivered next year.
That could create an artificial concentration of orders towards the end of 2026, followed by weaker demand in early 2027. Whether this materializes will depend on how fleet operators respond, and on manufacturers’ commercial offers.
The underlying paradox is that Belgium’s tax system, originally designed to accelerate electrification, now also influences the timing of EV replacement.
From an environmental and economic perspective, keeping an existing electric vehicle in service longer may sometimes make more sense than ordering a replacement simply to preserve a higher tax deduction.
For fleet managers, the message is therefore not necessarily to replace everything before December 31. It is necessary to carefully calculate whether the fiscal advantage outweighs the actual cost of changing vehicles.
And while the 2027 reduction is relatively modest, the difference will become substantially more significant for newly ordered EVs in subsequent years.
