How to Transfer a Private Car into a Limited Liability Company (sp. z o.o.) in the Most Advantageous Way in 2025 [GUIDE]

Transferring a private car into a limited liability company (sp. z o.o.) is one of the most cost-effective and most commonly used methods of reducing business costs. From 2025 the rules are still favourable - but as always, the devil is in the documents, depreciation and... in the Social Insurance Institution (ZUS).

In this guide I explain step by step how to do it in the most tax-efficient and legally safe way.

Why do many company owners plan to do this in 2025?

Simple: because 2025 is probably the last year in which the current depreciation limits and the current rules on vehicle deductions apply.

From 2026, changes are planned to:

• vehicle value limits,
• the tax authorities' approach to mixed use,
• a possible stronger link between deductions and CO₂ emission standards.

In other words: 2025 is the last year of stable, predictable rules - and that is exactly why it is worth acting now.

1. Transferring a private car into a sp. z o.o. - three possible routes

In the case of a sp. z o.o., a car can be brought into the company's assets in three ways:

A) Sale of the car to the company by the shareholder

This is the most popular and the "cleanest" method.

Advantages:

• The car enters the company with full documentation (an invoice or sales agreement).
• The company charges depreciation and can claim all running expenses as costs.
• The shareholder can sell the vehicle at market value.

Disadvantages:

• The shareholder realises income from the sale - but if the car has been in private ownership for more than 6 months, the tax is PLN 0.
• The company must have the funds to buy it - although this can be worked around by paying in instalments or by set-off.

B) Contributing the car as an in-kind contribution

The shareholder contributes the car as a non-cash contribution.

Advantages:

• No income for the shareholder.
• An increase in share capital (which looks good to a bank).

Disadvantages:

• A more complicated procedure.
• A valuation is required - and you need to be careful not to undervalue or overvalue the car.

C) Transferring the vehicle to the company free of charge

Formally possible, but:

Disadvantages:

• The company may be treated as receiving income from a gratuitous benefit.
• The tax authorities do not like "free" - there is a risk of disputes.

This is why this method is rarely used.

2. Valuing the vehicle - a key issue

The initial value of the car in the company can be based on:

• The purchase price - if you have an invoice or a civil law transactions tax (PCC) record.
• Market value - if you bought the vehicle a long time ago and have no documents.

Please note: if the valuation departs from market value, the tax authorities may challenge it - and we do not want that.

3. Depreciation - be careful (2025 limits)

In 2025 the existing limits still apply:

🚗 Petrol/diesel cars and hybrids:

PLN 150,000 - the value limit for depreciation.

⚡ Electric cars:

PLN 225,000 - a more favourable limit, which is why EVs are the optimisation hit of 2025.

If the car is more expensive, you will only be able to deduct part of the costs, proportionally.

4. VAT - the most important point of the game

The VAT deduction depends on how the car will be used:

A) Mixed use (private + business)

You can deduct 50% of VAT and 75% of running costs.

B) Business use only

Full 100% VAT + 100% of costs.

But note: certain conditions must be met:

• vehicle use rules,
• a mileage log,
• no private use,
• monitoring of use.

In practice, many companies find it difficult to maintain "100% business use".

5. Can the car be used privately after the transfer?

Yes! But:

• the company no longer applies the PLN 250/400 flat-rate amount (as in a sole proprietorship (JDG)),
• however, private use may affect VAT and costs.

That is why it is worth setting clear rules, e.g.:
– car 75% business, 25% private,
– the user pays for private fuel,
– an agreement entrusting company property.

6. What is the most advantageous option in 2025? (OUR ADVICE)

The most cost-effective set-up for a shareholder of a sp. z o.o.:

✔ 1. Sell the car to the company at market value

After 6 months from purchase - no tax for the shareholder.

✔ 2. A petrol/diesel or hybrid car up to PLN 150k or an EV up to PLN 225k

Then depreciation is available in full.

✔ 3. Mixed use - 75% of costs and 50% of VAT

The simplest option, with no risk and no mileage log.

✔ 4. Documentation:

• sales / in-kind contribution agreement,
• fixed asset acceptance record,
• fixed asset register,
• determination of the initial value,
• management board resolution,
• vehicle use rules.

✔ 5. Do it in 2025, before the rules tighten.

7. The most common mistakes made by business owners

❌ Transferring the car "for free" (tax risk).
❌ Undervaluing the vehicle.
❌ No vehicle use rules.
❌ Incorrect recording of the fixed asset.
❌ Failing to notify the company's accountants of the changes.

8. Summary - and now the most important part

If you want to transfer a private car into a sp. z o.o. in a way that is:

• legal,
• tax-efficient,
• fully legally secure,

- 2025 is the best time.

You can gain:

• lower corporate income tax (CIT),
• depreciation,
• running cost deductions,
• partial or full VAT recovery,
• greater creditworthiness for the company.

And all of this without difficult tricks - simply by correctly transferring the vehicle into the company's assets.

Need help?

We will prepare a complete document package:
✔ a sales / in-kind contribution agreement,
✔ vehicle use rules,
✔ the full procedure,
✔ tax calculations,
✔ accounting and legal support.

Contact us → https://globaltax.partners/kontakt/