Your business youngtimer: prepare for 2027

What applies in 2026?

The age threshold for the Dutch youngtimer scheme increased from 15 to 16 years in 2026. Under this scheme, the taxable addition for private use is based on the car’s current market value rather than its original list price. The percentage is 35%.

Transitional relief does not cover every car

Temporary approval applies to qualifying cars that reached the 15-year threshold in 2025. By 31 December 2025, the car must already have been made available to the employee concerned or have been available to the business owner concerned. The previous treatment may then continue during 2026.

A car that only reaches the 15-year threshold in 2026 does not qualify for this approval. Purchase date or model year alone is therefore insufficient to determine the treatment.

Compare the calculation base as well as the rate

At a current value of € 12,000, applying 35% produces a calculated annual addition of € 4,200. This is not the tax payable. The tax impact depends on income and the applicable rules. For an income-tax business owner, the addition is also limited to the relevant car costs deducted from business profit.

The Tax Plan proposes a different timetable

Existing legislation raises the age threshold to 25 years from 2027. The 2027 Tax Plan published on Budget Day proposes replacing this with 17 years in 2027 and 20 years from 2028. Both houses of Parliament still need to decide on the proposal.

For cars reaching the 17-year threshold during 2027, the proposal also includes transitional treatment for the start of that year. The car must already have been available to the same employee or business owner by 31 December 2025. Have the effect of the final legislation assessed before selling or replacing your car.

Can the car become a private asset?

For a sole trader, a legislative change may justify revisiting an earlier business-asset election, subject to conditions. You must demonstrate that the new rules would have led to a different original choice. This is not automatic; the car must also qualify as an asset for which a choice is permitted.

Existing guidance on revision from 1 January 2027 is based on the increase to 25 years. If the new proposal is adopted, have both eligibility and timing reviewed for your situation. A transfer out of a limited company requires a separate assessment, including valuation and VAT.

Gather the facts for your decision

• First-use date and the date the car became available for business use.
• List price, supported current value and annual car costs.
• Business and private mileage and the original asset classification.
• The options you are considering: keeping, replacing or moving the car to private assets.