Company bicycle leasing costs: What do employers and employees really pay?
Who bears the costs of company bike leasing? Find out here what bike leasing models are available, what costs employers and employees bear, and who benefits financially from company bike leasing.
The most important information at a glance
The costs for a company bicycle can be borne by employees, employers, or both jointly.
The most common form of financing is through a so-called gross salary conversion by employees.
Employers can pay for the company bicycle in full or provide a subsidy.
Company bike leasing can be implemented at no cost to the company.
Tax advantages often make leasing cheaper than a direct purchase.
Services such as insurance, servicing, and comprehensive protection vary depending on the provider.
Company bike leasing is becoming increasingly popular in Germany – among both employers and employees. Whether for sport, sustainability, or simply practicality, a leased bicycle or e-bike is increasingly complementing the company car. Both sides benefit from tax advantages, greater employee satisfaction, and a positive image in terms of sustainability.
But one question keeps coming up: Who bears the costs of company bike leasing? And what specific costs do employees and employers incur? There are no blanket answers to these questions, as there are several leasing models. In addition, a number of legal and tax aspects must be taken into account, as the following overview shows.
Company bicycle leasing costs: Who pays what?
With company bike leasing, the bike is leased by the employer and made available to the employee for use – usually as part of a gross salary conversion scheme. The costs can be distributed flexibly.
The key point here is that company bike leasing is flexible. Companies can decide for themselves whether to cover the costs in full, contribute to them, or enable leasing on a cost-neutral basis through salary conversion.
Cost coverage models for company bicycle leasing
1. Model: Employees bear the full costs (gross salary conversion)
Procedure: Employees use part of their gross salary to finance the leasing rate.
Tax advantages: The leasing rate is deducted from the gross salary before taxes and social security contributions are deducted, thereby reducing taxable income.
Advantage: This often results in real savings of up to 40% compared to a direct purchase.
Prerequisite: A corresponding additional contractual agreement between the employer and the employee stipulating that the salary will be reduced by a fixed amount for the duration of the lease.
2. Model: Employers bear the entire cost
Procedure: The employer pays the leasing installments in full—as an additional salary component or benefit in kind.
Advantage for employees: No costs, but full right of use—both privately and professionally.
Advantage for employers: Increased employee loyalty and the option to claim the leasing installment as a business expense.
3. Model: Employers pay a subsidy
Procedure: The leasing rate is split between the employer and the employee, e.g., on a 50:50 basis.
Combination possible: The subsidy may be exempt from tax and social security contributions if it is structured as a payment in kind (up to €50 per month, as of 2025).
Advantages:
Employees benefit from a noticeable reduction in costs.
Employers strengthen their attractive employer brand without incurring high additional costs.
The subsidy can serve as a motivational tool and is cheaper than a traditional salary increase.
Flexible use for different employee groups or individual agreements.
Cost neutrality for employers
Employers can offer company bike leasing at no cost to themselves if they act solely as lessees and have the leasing payments covered in full by gross salary conversion by employees. Advantage: No additional fixed costs for the company – but still plus points in employer branding.
Tax and legal aspects
There are two different tax treatment options for company bike leasing, depending on whether the bike is provided in addition to salary or as part of a gross salary conversion:
1. Company bicycle in addition to salary
Procedure: The employer provides the bicycle in addition to the salary already owed, without the employee having to forego any salary.
Tax treatment: Private use is tax-free – there is no monetary benefit.
Legal basis: Section 3 No. 37 of the German Income Tax Act (EStG)
Advantage: 100% tax-free for the employee – maximum financial benefit.
2. Company bicycle via gross salary conversion
Procedure: The employee uses part of their gross salary to finance the leasing installment.
Tax treatment: A monetary benefit of 0.25% of the gross list price per month is applied.
Advantage: Despite taxation, this model remains significantly cheaper than a private purchase, as income tax and social security contributions are based on a reduced income.
Differences between providers can affect costs and services
Even though the basic cost models are similar, the services offered by providers sometimes differ significantly. Factors such as insurance, service, and flexibility are decisive in this regard. Lease a Bike, for example, offers comprehensive solutions with integrated all-round protection. These include:
Coverage for theft and damage
Maintenance and service
Transparent cost structure
Flexible models for companies and employees
These services provide additional security and long-term planning reliability.
Costs after the end of the company bike lease?
A lease agreement usually runs for 36 months. After that, the following options are usually available:
Return the bicycle to the leasing provider.
Purchase by the employee at a residual value. Example from Lease a Bike: Upon request and if possible, the employee is made a purchase offer. In most cases, the calculated residual value is 18% of the original gross list price.
Please note: The purchase is voluntary – there is no legal entitlement.
Conclusion
Flexible cost models with advantages for both sides
Who bears the costs of company bike leasing depends on the model chosen. Employees can finance the company bike through salary conversion, while employers can cover the costs or contribute to them.
There are advantages for both sides: employees benefit from tax savings and modern mobility, while companies can increase their attractiveness as employers and promote sustainable mobility.
One thing is certain: flexible models and comprehensive services – such as those offered by Lease a Bike – allow company bike leasing to be optimally adapted to the needs of companies and employees.
