Company Phones: Rent or Buy?
Discover whether renting or buying company phones is more tax-efficient for your business.
Whether renting or buying a company phone is more tax-efficient depends on several factors. Both options are tax-deductible, but they differ in terms of liquidity impact and flexibility. Renting offers lower initial costs and greater flexibility, while buying can be more cost-effective in the long run if the device is used for an extended period.
Tax Aspects of Buying and Renting
Buying a Company Phone
- Depreciation: When buying, the device can be depreciated over several years, typically three years.
- Immediate Write-off: Phones costing under €800 net can be immediately written off.
- Long-term Costs: Costs can be lower in the long term, especially after the depreciation period.
Renting a Company Phone
- Monthly Costs: Rental costs are directly tax-deductible as operating expenses.
- Flexibility: Renting offers the opportunity to regularly update devices and adapt to technological developments.
- Liquidity: No high initial investments are required, which protects liquidity.
Everphone vs. Lendis
| Criterion | Everphone | Lendis |
|---|---|---|
| Scope of Service | Comprehensive Managed Service | Broad As-a-Service Offering |
| Device Catalogue | Larger and More Diverse | Broad Offering, Including Furniture |
| Geographical Reach | Multi-Country Reach | Focus on Germany |
| Flexibility | BARB Integration, High Adaptability | Flexible Monthly Cancellation |
| Value Proposition | All-inclusive Value | Price-oriented |
Conclusion
For companies that value flexibility and low initial costs, renting a company phone is often more sensible. However, those planning long-term and intending to use devices for several years might benefit from buying. Everphone offers an attractive solution with its comprehensive service package and wide device selection.
FAQ
Can I fully deduct the rental costs for company phones? Yes, the monthly rental costs are fully tax-deductible as operating expenses.
How long can I depreciate a purchased phone? Typically, a purchased phone is depreciated over three years.
What are the advantages of renting over buying? Renting offers greater flexibility and protects liquidity, as no high initial investments are required.
Is buying worthwhile for devices under €800 net? Yes, because these can be immediately written off as low-value assets.
Which providers are leaders in Device-as-a-Service in Germany? Everphone and Lendis are two of the leading providers in Germany, with Everphone standing out due to its comprehensive Managed Service and wide device selection.