How long will 100% electric vehicles remain 100% tax deductible?

Tax laws can be complex, but the rules governing the deductibility of 100% electric vehicles are surprisingly straightforward. Two factors are crucial: the year when you order the vehicle and the deduction percentage. What can you expect in 2026? And what will change afterwards?

The Belgian government rewards businesses that choose an electric fleet. No complex formulas or CO2 calculations, just clear, predictable rules.

Soon companies and self-employed people will benefit from the following tax deductibility rates, for the entire duration of their lease contract:

So the percentage of tax you can deduct depends on the year when your contract starts. For example, if you order an electric lease vehicle with a four-year lease contract in 2028, it will remain 90% tax-deductible until the end of 2031.

“In principle, the tax deductibility applies to all vehicle-related costs,” says Joren De Deygere, Customer Success Consultant at Ayvens. “That means your electricity costs are deductible to the same extent.”

“So if you’re calculating your Total Cost of Ownership, be sure to include the estimated energy costs for the entire duration of the contract. Not just the monthly purchase or lease payments. That keeps the financial impact of your electric vehicle predictable.”

If you order your electric vehicle(s) in 2026, you are guaranteed 100% tax deductibility for the entire duration of the contract. In 2027, this percentage drops to 95%. It will continue to fall in the following years, reaching 67.5% in 2031.

"The difference between 2026 and 2027 may seem limited, but it affects the entire contract term and therefore the overall cost,” says Joren De Deygere. The simulation below shows how that works in practice, using the example of a BMW iX1 leased for 60 months that drives 100,000 km.

How should these figures be interpreted? The monthly cost per vehicle increases by only €11.60, but the impact becomes much more noticeable on an annual and fleet-wide basis.

“The annual cost of a fleet of 50 vehicles ordered in 2026 is almost €7,000 lower than that of the same fleet ordered in 2027. Over the full 60-month contract term, the difference increases to €34,800,” explains Joren.

By the way, our simulation does not take into account any potential price increases in 2027, annual indexation or changes in leasing rates, so the actual cost difference could be even greater.

Joren’s recommendation: “Ordering before the end of 2026 is the best choice, financially speaking. On paper, the difference in deductable percentage between 2026 and 2027 seems small. But when you consider an entire fleet and the full contract term, it’s clear how much you save. And if we look at 2028 and beyond, the difference gets bigger and bigger as the tax deduction percentage continues to drop.”