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Cars and taxes – Dutch style

I’m writing this in English because the absurd complexity of Dutch tax law is probably more entertaining for foreigners than for locals who are used to it. There’s a chance that I’m going to work at a client’s office in the middle of nowhere for one month. I don’t have a car and public transport would take 3.5 hours per day, so I looked into renting a car. Here’s what I discovered so far; don’t try this at home without talking to your accountant.

The Car & Gasoline

There’s a car rental company a stone’s throw away from my home. I like small efficient cars and so they offered me a Kia Picanto or Fiat Panda for about €480 per month (including VAT) with 3,000 km allowance. For some reason Dutch people love manual transmission, so those are the cheapest. I need to drive about 2,400 km for work that month and I also want to do a few trips for personal reasons.