A benefit bike is a bicycle that an employee leases through their employer and can use both for work and personal purposes. At the end of the leasing period, typically three years, the employee can choose to return the bike or purchase it at its market value.

Since January 1, 2022, new favorable tax rules have been in effect, making this benefit more attractive for both employers and employees. Now, the employee is only taxed on the portion of the benefit that exceeds 3,000 SEK per tax year. For bikes that cost more than this tax-free amount, only the excess portion is subject to taxation.

More detailed information on the valuation of the benefit is available on the Swedish Tax Agency’s website.

More detailed information on the Swedish Tax Agency´s website.

For the employee, a bike becomes approximately 20–35 percent cheaper compared to buying it outright, while the cost is spread over three years.

A benefit bike provided through a gross salary deduction affects the income qualifying for sickness benefits (SGI), meaning that compensation from the Swedish Social Insurance Agency may be reduced for someone who, for example, goes on sick leave or parental leave. The impact depends on factors such as the employee’s salary and the cost of the bike.