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There are almost 300 tax-incentive and purchase-premium schemes for cycling across Europe offered by national, regional and local authorities to make it attractive to cycle more and drive less. While many incentives in Europe were already introduced in the last decade, the number of schemes has increased significantly since 2019.

ECF has mapped these schemes in a new online tool that provides information about the size of the subsidy, the type of bicycle and the eligible target groups. The tool gives an overview of cycling incentives at the national, regional and local level and is aimed at a wide range of stakeholders:

  • Businesses: If you represent a cycling business, it can help you identify market opportunities around Europe in countries, regions or cities where incentives and purchase premiums exist.
  • Public entities: By presenting best practices, it can inspire public administrations and decisionmakers to introduce schemes in their area.
  • Cyclists: It informs cycling advocates about schemes already implemented elsewhere around Europe to strengthen their advocacy efforts.

 

If you have any questions, please contact Holger Haubold: h.haubold@ecf.com
 

Tax benefits for cycling to work: For the purchase of an (electric) bicycle, € 300 can be deducted from the personal income tax every five years. More information here.

Company bicycles: For bicycles provided by the employer, no taxable benefit is imputed for the the employee. More information here.

Reduced VAT rate on bicycle repair: Yes

National

 
Amount per bicycle
50 % of the cost of the vehicle excluding VAT

Luxembourg

  • Country:
    • Luxembourg
  • Type of bicycle: All bikes
  • Target group: Individuals
 
Amount per bicycle
50 % of the cost of the vehicle excluding VAT
  • Timeframe: March 2024