Purchased or Leased Vehicle (Long-Term Lease/Lease-to-Own): How Does This Affect the Calculation of the 2025 AEN?
The 2025 tax reform regarding the vehicle benefit in kind makes the choice of acquisition method (purchase vs. lease) even more strategic. Indeed, as discussed in our article“Complete Guide to Calculating the 2025 Benefit in Kind,”the formulas are fundamentally different and have a direct and significant impact on the amount of the benefit in kind.
- AEN, New
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Calculating the Cost of a Purchased Vehicle: Based on the Purchase Price
When a company provides an employee with a purchased vehicle, the benefit in kind is calculated based on the vehicle’s purchase price, including tax.
The new flat rates (excluding fuel) applicable in 2025 are:
15% of the purchase price for a vehicle less than 5 years old,
10% of the purchase price for a vehicle that is more than 5 years old.
Example:
For a vehicle purchased for €40,000 (including tax) that is less than 5 years old: Benefit in Kind = €40,000 × 15% = €6,000 per year.
Calculating Costs for a Leased Vehicle (LLD/LOA): Based on Annual Costs
For a vehicle under a long-term lease (LTL) or a lease-to-own agreement (LTO) provided by an employer to an employee, the basis for the calculation is no longer the purchase price but the total annual cost, which includes the lease, maintenance, and insurance.
The new flat rate (excluding fuel) is set at:
50% of the total annual cost.
Example:
For an equivalent vehicle with a total leasing cost of €9,000 per year:
Benefit in kind = €9,000 × 50% = €4,500 per year.
Tip to Know: The Cap on Benefits in Kind for Leased Vehicles
An important—and often overlooked—point inthe BOSS (Official Social Security Bulletin): when a vehicle provided to an employee is leased, the value of the benefit in kind can be capped at the amount that would have been calculated if the vehicle had been purchased.
In practical terms, this means that the company can compare:
The flat-rate rental calculation (50% of the cost),
A flat-rate calculation based on the purchase price (15% or 10% of the total, depending on the vehicle's age).
If the “purchase” amount is lower, it is this reduced amount that can legally be used, thereby limiting the base for social security contributions.
A concrete example:
Rented vehicle: total cost = €9,000 → flat-rate AEN = €4,500.
Total price (including tax) for the same vehicle = €40,000 (less than 5 years old) → Flat-rate AEN = €6,000.
In this case, the calculation (€4,500) remains more advantageous.
Now let’s imagine a higher total annual expenditure, for example, €12,000:
Benefit in Kind (leased vehicle) = €12,000 × 50% = €6,000,
Benefit in Kind (purchased vehicle) = €40,000 × 15% = €6,000.
The two methods balance each other out, but if the annual rental cost were to rise further, the cap would limit the amount to a maximum of €6,000, rather than a higher figure.
The bottom line: To get the best deal, it’s essential to ask the rental company for the total cost of the vehicle (including tax) so you can always determine whether capping the cost is worthwhile.
In 2025, two methods (a flat rate or actual cost) will coexist for determining the vehicle benefit in kind:
the flat rate, which is simpler but is now more expensive due to rising interest rates,
the actual figure, which is more complex but potentially more accurate and advantageous depending on how the vehicle is used.
For leased fleets, the cap set by the BOSS serves as a key tool for optimization, helping to prevent the AEN from being valued too high relative to the vehicle’s purchase price.
By 2025, choosing between different powertrains is no longer just a matter of technological preference, but a genuine strategic decision. The reform of the “benefit in kind” tax system is shifting the balance: hybrids are losing their tax advantages, while all-electric vehicles are emerging as the only option that still offers real benefits.
In practice, the key lies in systematically simulating both scenarios —internal combustion or electric—before making anypurchasing decision. This comparison is essential for minimizing the tax impact and optimizing the management of company vehicles, for both the company and the employee. By anticipating the total cost of each solution (purchase, maintenance, fuel consumption, and taxes), fleet managers can adjust their strategy and maintain a balance between budget performance and regulatory compliance.
Beyond taxation alone, this approach is part of a broader vision of corporate mobility: sustainable mobility that aligns with environmental goals and corporate social responsibility. The decisions made in 2025 will have a lasting impact on the total cost of ownership (TCO) and on the appeal of the vehicle fleet to employees. Taking the time to evaluate each scenario in light of the new rules is therefore no longer an option, but a necessity to combine economic efficiency with environmental commitment.
