This is mainly due to the tax advantages resulting from the company car regulation. With bike leasing, the employer is the lessee and provides the bike to the employee for use. If an employee decides to purchase a company bike, he or she also decides to convert part of his or her salary entitlement into a benefit in kind. This reduces the taxable income for both the employee and the employer. In this case, the so-called non-cash benefit for the company car (1% of the quarter of the manufacturer's recommended retail price rounded down to a full 100 euros) is added back to the taxable salary. The lower taxable income also reduces social security contributions and thus also corresponding benefits by a small amount (e.g. in the old-age pension).