More and more companies are choosing car rental as a flexible and advantageous solution compared to traditional purchasing, as fleet management is a crucial element in optimizing costs and improving operational efficiency.
In 2025, corporate car rental proves to be an effective strategy not only for simplifying vehicle management but also for taking advantage of significant tax benefits recognized by Italian regulations.
What is corporate car rental and how it works in 2025
Corporate car rental is a contract through which a company can use a vehicle without purchasing it outright. Essentially, the company pays a fixed monthly fee covering the use of the car for a predetermined period, usually from 24 to 60 months.
In 2025, this solution continues to be a valid alternative to buying or traditional leasing, especially for those seeking flexibility and cost control. Unlike purchasing, rental eliminates the burden of unexpected expenses such as maintenance, insurance, and taxes, as these are generally included in the monthly fee.
There are two main types of rental:
- Short-term rental, ideal for temporary needs or specific projects.
- Long-term rental, the most common solution for businesses, allowing vehicle use planning over several years and offering dedicated tax benefits.
Long-term rental for companies is therefore a practical and cost-effective tool to maintain an up-to-date fleet without the worries associated with day-to-day vehicle management.
Tax benefits of car rental for businesses
One of the main reasons many companies choose car rental is the tax advantages this formula offers, especially in 2025 with updated regulations.
1. Deductibility of rental fees
Companies can deduct a significant portion of the costs incurred for vehicle rental. In particular, monthly fees are tax deductible according to varying percentages:
- 20% for vehicles used for both business and personal purposes.
- 40% if the vehicle is instrumental to the business activity, e.g., for sales agents and representatives.
- 100% in the case of exclusive business use, provided the company can prove such use.
2. VAT deductibility
VAT paid on rental fees is also partially deductible:
- 40% of VAT is deductible for mixed-use vehicles.
- 100% for vehicles used exclusively for business or belonging to specific categories such as vehicles for sales agents, taxis, or chauffeur services.
For VAT-registered professionals and categories like sales agents, car rental is a tax-efficient solution due to higher deductibility and VAT recovery percentages.
Thanks to these incentives, corporate car rental allows businesses to optimize their budgets, reduce tax burdens, and improve financial management.
Operational and managerial benefits for companies
Beyond tax advantages, corporate car rental offers important operational benefits that help businesses simplify fleet management and maintain cost control.
1. Simplified and predictable management
With long-term rental, routine and extraordinary maintenance, insurance, and roadside assistance are generally included in the monthly fee. This means the company does not have to worry about organizing technical services or dealing with unexpected vehicle-related expenses.
2. Fixed and planned costs
The fixed monthly fee allows for precise budget planning, avoiding surprises and cost spikes. This facilitates financial management and cost control, making rental a suitable solution even for small and medium-sized enterprises.
3. Always up-to-date fleet
Thanks to the possibility of renewing the contract every few years, companies can rely on a modern, efficient fleet that complies with the latest environmental and safety regulations. This improves the company’s image.
4. Fleet optimization and control
Many rental companies offer digital tools and management platforms that allow real-time monitoring of usage, costs, and deadlines for each vehicle, enabling centralized and more efficient management.
These operational benefits make car rental a practical and advantageous option for any company looking to reduce the risks associated with managing corporate vehicles.
How to choose the most suitable car rental for your business
Choosing the right car rental solution for your company is essential to gain maximum benefit both in tax and operational terms.
Here are some key aspects to consider when making your decision:
- Evaluate contract duration and mileage: Rental contracts can have different durations, generally from 24 to 60 months. It's important to choose a duration that reflects the company's needs, balancing flexibility and economic convenience. Annual mileage should also be carefully assessed, as exceeding the limit may result in additional costs.
- Check the services included in the fee: Not all rental contracts are the same. Check which services are included in the monthly fee. Maintenance, insurance, and roadside assistance are usually included, but it's always good to confirm to avoid unexpected expenses.
- Contract customization: Some rental companies offer customizable contracts, such as options for specific vehicles, accessories, or particular usage conditions. Evaluate whether the contract can be adapted to your business needs.
- After-sales support: Good support throughout the contract period is essential for hassle-free management.
- Evaluate economic conditions: Pay attention to the price, but also to contract terms, penalties, and flexibility regarding renewal or early termination.
By following these tips, you can choose the car rental solution that best suits your company, ensuring tax benefits, operational efficiency, and smooth management.
FAQ
To clarify common doubts about corporate car rental, here are the answers to the most frequently asked questions by companies and professionals.
Is car rental really cost-effective for businesses?
Yes, car rental is often more convenient than buying because it provides fixed costs, included services, and tax advantages, reducing risks and complexity in fleet management.
What are the limits on tax deductibility for car rental?
Deductibility varies depending on vehicle use. For mixed-use, 20% applies, while for instrumental or exclusive business use, higher percentages up to 100% may apply, within the spending limits set by law.
Can I deduct all the VAT on the rental?
VAT deductibility depends on usage. For mixed-use vehicles, 40% can be deducted, while for vehicles used exclusively for business or certain categories such as sales agents, the deduction can reach 100%.
Can I change vehicles during the rental contract?
It depends on the contract. Some providers allow early changes or vehicle renewal, but it's important to review contract terms to avoid penalties.
What services are included in the rental fee?
Generally included are routine and extraordinary maintenance, insurance, roadside assistance, and vehicle tax, but it's always best to confirm the details with the provider.
Corporate car rental is a strategic solution for companies seeking both tax and operational benefits.
Choosing rental means relying on a complete service, freeing up valuable resources to focus on core business activities.
If you want to find out how car rental can help your business save money and work more efficiently, rely on us at Revirent24.
Don't miss the opportunity to simplify your fleet management and obtain real tax benefits.
Choose car rental with Revirent24, the ideal partner for your business!
