“Youngtimer scheme is being overhauled”

The youngtimer scheme is being changed. Until now, it was tax-advantaged for entrepreneurs to drive a car fifteen years or older for business purposes. New plans provide for a change in this scheme, which will not benefit the dedicated owner of a youngtimer. This recently became clear when the House of Representatives adopted a proposal to streamline the scheme. The change coincides with the extension of the additional tax benefits for electric car users. The reason cited is "greening the vehicle fleet."

One of the few tax incentives that car enthusiasts and entrepreneurs still truly benefit from is the so-called youngtimer scheme. This allows entrepreneurs to drive a more exclusive, vintage car relatively inexpensively, as long as it's at least 15 years old. For those less familiar with the rules: with a regular company car, you pay a 22% tax addition on the list price (the value when the car was new). With a youngtimer, on the other hand, you pay 35%, but based on the current market value. And that's a huge difference, especially for cars that once commanded high prices but now have a low(er) value due to significant depreciation.

Why does this arrangement actually exist?

The youngtimer scheme was originally introduced to encourage the sustainable reuse of existing cars. At the time, it was thought that keeping a well-maintained older car on the road for longer was more environmentally friendly than constantly producing new ones. The scheme also ensured that business drivers didn't automatically opt for a new lease car, but instead more often chose a respectable, older car. It therefore resulted in less production pollution and offered an alternative for business lease drivers. Enthusiasts, in particular, have benefited from this practice, as the scheme makes it possible to drive something special affordably.

But something is going to change

The government is currently losing billions due to the discount on the additional tax liability for electric cars. Because this discount will remain in effect for an extended period, the government wants to recoup that money elsewhere. One of the revenue streams comes from the restructuring of the youngtimer scheme. Starting in 2027, a significant change will take effect: a car must be 25 years old to still benefit from the scheme. The consequences are obvious: this will be counterproductive for the government's coffers, as many entrepreneurs with a "youngtimer fleet" will consider addressing their mobility needs differently. Moreover, the elimination of the scheme's tax benefit will never outweigh the cost of maintaining the additional tax benefit for electric car users.

Phased transition

The age limit won't jump directly from 15 to 25 years. Starting January 1, 2026, the threshold will increase from 15 to 16 years. The choice for a limited increase seems primarily motivated by practical and market considerations: a small step is less drastic, but it does signal that a larger change is on the way. This adjustment will naturally impact the used car market. Cars that would have become youngtimers next year will suddenly be left out. And starting in 2027, this effect will be even greater. Certain models that are currently attractive will lose their tax benefits and therefore potentially decrease in value, while cars aged 25-40 years could actually become more attractive under the scheme, provided they "survive" the shift.

Partial profit

Because the age limit will be raised from 15 to 16 next year, car owners who turn 16 in 2026 will be able to partially benefit from the advantages. Furthermore, owners of cars older than 16 years will be able to use the 2026 calendar year to "adjust." It is expected that many business owners will therefore choose to transfer their car to private ownership and reimburse themselves €0,23 in mileage expenses from their business.