Company car fringe benefit tax hike: what Italy's Decreto Omnibus means for the used car market

What the 2026 Decreto Omnibus actually does

On 10 June 2026 Italy's Council of Ministers gave preliminary approval to a corrective legislative decree (Government Act no. 430), sent to Parliament on 21 July for committee opinions. As of 29 July 2026 it is not yet law, but the direction is set: employees driving a company car under a mixed-use arrangement will pay more once the vehicle passes five years from its first registration.

The measure does not touch the tax rates set by the 2025 Budget Law, which stay at 10% for electric vehicles, 20% for plug-in hybrids and 50% for combustion vehicles. What increases by 50% is the conventional value those rates are applied to, plus an extra 5% surcharge for accessories and trim levels not already priced into the ACI tables, which currently have no specific tax treatment.

How the calculation works in practice

The fringe benefit on a company car is worked out by multiplying the ACI per-kilometre cost of the model by a conventional annual mileage of 15,000 km, then applying the statutory percentage based on fuel type. The new 2026 ACI tables, published in the Official Gazette, remain the reference for this calculation. The Decreto Omnibus change layers on top of that mechanism: once a car passes five years from first registration, the conventional value used as the base is increased by 50%, so the taxable fringe benefit on the payslip grows proportionally at the same tax rate.

Who is affected: older contracts too

One point drawing particular attention from payroll consultants and tax offices is retroactivity. The five-year surcharge does not only apply to cars assigned under the 2026 rules — it also extends to vehicles under the so-called old regime, meaning those granted for mixed use between 1 July 2020 and 31 December 2024, plus vehicles ordered by the end of 2024 but delivered in 2025. Once the age threshold is crossed, calculated from the date of first registration rather than the date the car entered the fleet, these vehicles face the same 50% increase in taxable base.

Why fleets may turn over faster

For fleet managers, the economics shift noticeably. A company car that used to stay in service for six or seven years to fully amortise a long-term rental or lease contract suddenly becomes more expensive for the employee to keep precisely in its final years — the years when extending use used to make sense. The likely result is shorter fleet renewal cycles, which directly means more ex-company cars hitting the market, typically between two and five years old, with tracked maintenance and certified service records.

The knock-on effect on the used car market

This compounds a trend already underway: the large-scale return of vehicles from corporate fleets and long-term rental has been feeding marketplaces for months with relatively young cars, often under 60,000 km, at prices well below new-car list. If the fringe benefit tightening accelerates these returns further, buyers looking for a mid-to-premium used car could find more choice and sharper pricing in the coming months, especially on the German and premium models that dominate Italian corporate fleets.

Buying an ex-company car: upsides and what to check

Fleet-sourced vehicles generally come with one concrete advantage: maintenance history is almost always documented, often through official networks, and service intervals are respected on schedule because they are tied to fleet management contracts. Before buying one, it is still worth checking the service booklet, how many drivers used the car (pooled company vehicles can have multiple drivers and therefore more uneven wear), and the condition of tyres and brakes, since company cars tend to rack up steady motorway mileage.

Is a company car still worth it, or is a used car the smarter buy?

With the taxable base rising 50% after five years, some employees with older mixed-use vehicles may start running the numbers: keep paying a higher fringe benefit on the payslip, or give up the benefit — perhaps in exchange for a mileage allowance or a renegotiated package — and buy a used car privately to manage independently. The right call depends heavily on annual mileage, expected maintenance costs, and the residual tax advantage compared with an electric or plug-in hybrid, which remain clearly favoured by the lower rates.

What to do in the meantime

The decree is not yet final and the text can still change during its passage through Parliament. Anyone managing a company fleet, or driving a mixed-use car approaching the five-year mark, should track the bill's progress over the coming weeks, check with HR how the surcharge will be applied, and — if leaving the company car scheme is on the table — start checking used market prices for the same model now, to judge whether it makes sense to buy sooner or wait.