The system of the mobility budget, which was initially introduced by the Law of 17/03/2019, has been modified.   The new rules will be applicable as from 1 January 2022.

As a reminder, the current system offers an employee who has a company car or is entitled to a company car:

  • The possibility to hand in the company car (or to renounce it) or to opt for a more environmentally friendly car (pillar 1).
  • To use this budget for sustainable means of transport in pillar 2. The items in pillar 2 are fully exempt from taxes and social security contributions.
  • To receive the remaining budget in cash (pillar 3). This amount is only subject to social security contributions of 38,07% and is fully exempt from taxes.


Please find hereafter a high-level summary of the most important changes to the current mobility budget legislation:

Clarification about the calculation of the mobility budget:

A Royal Decree will be published providing more information on the calculation of the mobility budget.    There will be a choice between actual costs and a lump sum amount.   The new legislation also introduces new limits, e.g. a range between 3.000 EUR and 16.000 EUR, with a maximum of 20% of gross salary.   

In case the employee also uses the car for professional purposes, it is now confirmed that the costs relating to the professional use can be deducted from the mobility budget as long as the professional costs are still reimbursed on top of the mobility budget.

Removal of waiting period

The condition that the employee must benefit or qualify for a company car for at least 12 months during the 36 months preceding the application and during 3 months at the time of the application has been removed.  An employee can now immediately apply for the mobility budget without the waiting period.

Extension and update of sustainable means of transport in pillar 2

The employer should at least offer one choice in pillar 2.   The list of sustainable means of transport has been extended and updated. It now includes for example:

  1. Purchase, rent, lease or financing of a bicycle
  2. Purchase of accessories to protect the driver (e.g. helmet)
  3. Electric tricycles and quadricycles
  4. Subscriptions for public transport for family members
  5. Parking costs related to the use of public transportation
  6. The distance for the reimbursement of housing costs has been increased from 5km to 10km. The capital repayment of a mortgage credit can now also be considered.


KPMG can assist you with the full tax & legal implementation of the mobility budget and advise you on the switch to a full future proof mobility framework.