What is fri bil (company car benefit)?

In short

Fri bil is a company car that may also be used privately. The value is taxed as a benefit on top of salary, using a fixed formula based on the car's price and its environmental levy.

In practice

The tax applies no matter how little the car is used privately — and commuting counts as private. For many, tax-free mileage allowance in a private car beats a company car; do the maths before putting the car into the company.

Go deeper: Mileage deduction for the self-employed: 2026 rates and rules

Related terms

• Kørselsgodtgørelse (mileage allowance)
• Personalegoder (employee benefits)
• Fri telefon (company phone benefit)
• See every term in the dictionary

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