Renting allows you to use a vehicle for a monthly fee, which includes insurance, maintenance, and taxes. The monthly fee is calculated at the beginning and remains constant over time.
How does it work?
You need to contact your human resources department to submit the request and to be informed of the steps to follow within your company. Nonetheless, we recommend that you include the following in your request:
- Renting offer: We will need all the vehicle details to calculate the renting fee and determine the savings. Please attach the document provided by the supplier with the vehicle information and the offer.
- Driver's license on both sides.
Subsequently, your HR department will review and either approve or deny your request. We will keep you informed by email and provide further instructions if your company approves your request.
What are the limitations?
If you use the vehicle exclusively for work purposes, the company will cover the cost, and it will not be considered as part of your salary but rather a company expense.
However, if the car remains in your parking space instead of the company's, it is considered an additional benefit (in-kind salary) since you use it for personal purposes. In this case, a calculation is made to determine how much time you use the car for work and how much for personal use.
It is important to note that this benefit is not exempt from taxes. However, you will not have to pay taxes on the total value of the car, but only on the difference between the taxable amount and the total fee of the car.
|💡 For example: Let's suppose the renting fee is €400, but only €250 is subject to taxation on your payslip. Therefore, the employee would not be paying taxes on the remaining €150. Those €150 would be treated as any other tax-exempt expense under salary sacrifice, meaning the worker would save the corresponding taxes on that amount.|
|ℹ️ The calculation of the taxable amount takes into account the vehicle's energy percentage, so the more efficient the vehicle is, the greater the savings.|
In Navarra, employees have to pay taxes on the total renting fee since there is no tax exemption. However, employees can benefit from collective prices, allowing them to rent products at lower prices.
In the Basque Country, the cost of renting for the company is the same as the attributed cost to the employee. If the employee uses the rental for private purposes, the amount they have to pay is reduced by 50%. Therefore, 50% of the renting cost would be tax-free for the worker.