Updated August 2026
Finland's company bike benefit (työsuhdepyörä) lost its tax exemption on 1 January 2026. The news made headlines, but few have worked out what it means in practice.
In short: in the commonly used salary exchange model, the tax benefit of a company bike is now zero. Not smaller than before – zero. The benefit itself hasn't disappeared, and it can still be a sensible way to get a bike. The reason is simply completely different from what it used to be.
The short answer
The €1,200 annual tax exemption on Finland's company bike benefit ended on 1 January 2026. In new agreements the whole benefit is a taxable fringe benefit at its fair value. Exception: if you committed to taking up the benefit on or before 23 April 2025, the exemption continues to the end of the agreement period, and for at most five years from when the benefit began. The bike benefit itself continues – only its tax treatment changed.
Three situations – which applies to you?
The decisive date is the date of commitment, not the date the bike was delivered. Commitment means a situation where the employer and employee have agreed to take up the benefit and one of them has entered into an order agreement for the bike.
| Commitment | Tax treatment |
|---|---|
| On or before 23 April 2025 | €1,200/year exemption continues to the end of the agreement period, max 5 years from take-up |
| 24 April 2025 – 31 December 2025 | Tax-free to the end of 2025, taxable from 1 January 2026 |
| 1 January 2026 or later | A taxable fringe benefit from the outset |
Warning: amending the agreement can cost you the exemption
This is the most important thing to know if you have an older agreement.
The transitional provision applies only to the agreement package committed to before 24 April 2025. If changes are made to the agreement, it is treated in principle as a new benefit – and the exemption is lost.
Things typically treated as a new agreement include changing the bike for another one, changing the leasing agreement, and the agreement transferring to a new employer or service provider.
Practical advice: if you have a company bike agreed before 24 April 2025, don't make any changes to it without talking to your operator first. Changing jobs can also break the benefit.
Why the tax benefit is now zero – the maths
In Finland a company bike is most commonly arranged through a salary exchange model: gross salary is reduced by the leasing payment and a bike benefit is provided in its place. Here's what happened to that model.
Take a monthly leasing payment of €100 and a marginal tax rate of 30%.
Before 1 January 2026: gross salary fell by €100 and a tax-free benefit of €100 replaced it. Taxable income therefore fell by €100, so tax fell by €30. Net pay fell by only €70. The bike cost €70 a month.
From 1 January 2026: gross salary falls by €100 and a taxable benefit of €100 replaces it. Taxable income stays the same, so tax doesn't fall at all. Net pay falls by the full €100. The bike costs €100 a month.
The difference is exactly your own marginal tax rate. On a three-year agreement at a 30% rate, the additional cost is around €1,080. At a higher tax rate, more.
In other words, in the salary exchange model a company bike no longer produces any tax saving. It has changed from a tax benefit into a financing product.
Comparison: company bike or finance?
Now that the tax benefit is gone, a company bike should be compared against something it never had to be compared against before: ordinary instalment finance.
Example of a €3,600 bike on a 36-month leasing agreement at €100 a month:
| Company bike (2026–) | Interest-free instalments | |
|---|---|---|
| Total payments | €3,600 | €3,600 |
| Tax benefit | €0 | €0 |
| Buy-out at end of term | Residual value on top | The bike is already yours |
| Ownership | Only after the buy-out | Immediately |
| Servicing and insurance | Often included | Separate |
In pure euros, instalment finance is now usually cheaper, because at the end of the leasing term you still pay a residual value for the bike. What weighs on the company bike side is the servicing and insurance often included in the agreement, and the fact that payment is handled automatically through payroll.
Rule of thumb: work out the value in euros of the servicing and insurance included in the agreement and compare it with the residual value. If the service package covers annual services for the whole term, the gap narrows considerably.
When is a company bike still worth it?
The benefit isn't dead. In these situations it's still a good choice:
- The employer pays for the benefit in full rather than using salary exchange. Then it's a genuine additional benefit, and despite being taxable the employee gets the bike well below price.
- An expensive bike and a long agreement, where the value of the included servicing and insurance grows large.
- You don't want a lump-sum investment and don't want a finance agreement in your own name.
- You already have an older agreement from before 24 April 2025 – it's still tax-free, and worth holding on to.
What about from the employer's point of view?
The bike benefit remains an accidentally underrated staff benefit for employers. Offering it doesn't require a large investment, it supports active commuting, and it's a concrete benefit visible in everyday life – unlike many other staff benefits.
The change affects the tax treatment of the benefit at the employee's end, not whether it's worth offering. If the employer pays for the benefit in full or in part, it remains a competitive way to stand out in recruitment.
Frequently asked questions
Did Finland's company bike benefit disappear in 2026?
No. The benefit still exists, but its tax exemption ended. In new agreements the bike benefit is a taxable fringe benefit at its full fair value from 1 January 2026.
Does my existing agreement keep its tax exemption?
Yes, if commitment to taking up the benefit happened on or before 23 April 2025. The exemption continues to the end of the agreement period, for at most five years from when the benefit began.
Can I change the bike without losing the exemption?
No. Changing the bike, changing the leasing agreement, or the agreement transferring to a new employer or service provider is treated in principle as a new agreement, at which point the exemption is lost.
How much does the tax change cost me?
In practice, your own marginal tax rate applied to the value of the benefit. On a €100 monthly benefit at a 30% rate, the additional cost is around €30 a month, or roughly €1,080 over a three-year agreement.
Should I buy a bike on finance or as a company bike now?
In pure euros, interest-free instalments are now usually cheaper, because a residual value is still paid at the end of the leasing term. A company bike can still win if servicing and insurance are included, or if the employer pays for the benefit in full. Work out both before deciding.
Can a company bike be bought outright at the end?
Yes, at the end of the agreement period the bike can usually be bought at its residual value. Whether that's worthwhile depends on the bike's condition and the size of the residual value.
Can I still get a company bike from any bike shop?
It depends on the bike benefit operator your employer uses. We work with bike benefit operators – ask us and we'll find out whether buying a bike through your employer's arrangement is possible.
Summary
The company bike changed from a tax benefit into a form of finance. In the salary exchange model the tax benefit is now zero, and the additional cost matches your own marginal tax rate – typically around a thousand euros over a three-year agreement.
That doesn't mean the benefit isn't worth taking. It means the calculation has to be redone and compared against interest-free instalments. If your employer pays for the benefit, or if servicing and insurance are included in the agreement, a company bike can still come out ahead.
We're happy to help you make the comparison for your own situation – tell us the bike's price, the agreement length and your employer's operator: myynti@emiliasport.fi or +358 50 470 4686.
Read also: Svea instalments and finance and Is a bike worth investing in?
Written by the Emilia Sport team
Emilia Sport has been a bike shop since 1978. Our staff have up to 45 years of experience in the bicycle trade, and we supply bikes both as company bikes and on finance. We're happy to help by phone too: myynti@emiliasport.fi / +358 50 470 4686.
This article is a general description of a change in Finnish legislation and is not tax advice. The calculations are examples and the actual effect depends on your own tax rate and agreement terms. Check your own situation with the Finnish Tax Administration, your employer or your bike benefit operator.
