Cycling is booming in Ireland. With growing awareness around sustainability, health, and the rising cost of commuting, more Irish workers are looking to switch their car keys for handlebars. Enter the Cycle to Work Scheme—a game-changer for anyone thinking of investing in an electric bike (e-bike) or mountain bike without blowing the budget.
In this guide, we'll walk you through how to get the best value from the scheme, what kind of bikes you can buy, and how Irish customers are using it to gear up for both city commuting and off-road adventures.
What is the Cycle to Work Scheme?
The Cycle to Work Scheme is a government-backed initiative in Ireland that allows employees to buy a new bicycle and safety accessories tax-free, with payments spread out over 12 months via salary sacrifice. The savings can be significant:
- Up to €1,500 for e-bikes and cargo bikes
- Up to €1,250 for regular bicycles, including mountain bikes
- Includes accessories like helmets, lights, locks, jackets, and more
- Can be used once every four years
The big win? You save on Income Tax, USC, and PRSI, which can slash the cost of your new bike by 32%–52%, depending on your tax bracket.
Why Choose an E-Bike in Ireland?
E-bikes are transforming how people get around Ireland’s cities and countryside. With a built-in motor that assists your pedalling, they make commuting faster, less sweaty, and easier on hilly routes.
Top benefits for Irish commuters:
- Beat traffic in cities like Dublin, Cork, and Galway
- Arrive fresh to work, even on longer rides
- Reduce car dependency
- Handle hills and headwinds like a breeze
- Save on fuel and parking costs
Popular e-bike models in Ireland include the Cube Kathmandu Hybrid, Raleigh Motus, and Specialized Turbo Vado—many of which are available through the scheme.
Are Mountain Bikes Covered?
Yes, absolutely! If you prefer off-road riding or your commute involves rugged paths or parks, a mountain bike could be the perfect fit. You can get:
- Traditional mountain bikes up to €1,250
- Electric mountain bikes (e-MTBs) up to €1,500
Irish riders love brands like Cube, Trek, and Giant, which offer versatile bikes suited for both city and weekend trail use.
How to Maximise Your Cycle to Work Scheme Savings
1. Pick the Right Bike for Your Needs
Think about your lifestyle and commute:
- Urban commuters: Look at hybrid e-bikes or step-through city bikes
- Weekend warriors: Consider a mountain bike or gravel bike
- Mixed-use riders: An e-MTB gives you the best of both worlds
Take test rides if possible. Retailers across Ireland—especially in Dublin, Galway, and Limerick—have great options to try before you commit.
2. Include Accessories in Your Budget
You don’t just get the bike! The scheme covers essential gear, including:
- Helmet (€40–€150)
- High-quality D-lock (€50–€100)
- Lights (front & rear)
- Waterproof panniers or a backpack
- High-vis jacket
- Mudguards and kickstand (if not included)
You can use up the entire €1,250 or €1,500 allowance—so get everything you need in one go.
3. Work with a Cycle Scheme-Registered Retailer
Not all retailers are scheme partners. Choose a bike shop that:
- Understands the scheme inside-out
- Offers Cycle to Work packages
- Provides after-sales service and support
- Let you customise your bundle with accessories
Shops like Cycle Centre have a strong reputation and helpful staff.
4. Use Your Full Allowance Wisely
Here’s an example of a smart bundle for an e-bike commuter:
- E-Bike: Cube Kathmandu Hybrid (€1,399)
- Helmet: Abus Urban-I 3.0 (€79)
- Lock: Kryptonite New York Fahgettaboudit (€99)
- Waterproof pannier: Ortlieb Classic (€85) Total: €1,462 (under the €1,500 e-bike limit)
You’ve covered everything—bike, safety, and storage—within the tax-free allowance.
5. Factor in the Tax Savings
The amount you save depends on your income. Here's a rough idea:
- Standard rate (20%): Save ~32% overall
- Higher rate (40%): Save ~52% overall
Example:
- You pick a €1,500 e-bike
- Pay via salary over 12 months (~€125/month)
- After tax relief, your net cost could be around €720–€1,020
That’s a huge saving on a high-end electric bike!
Customer Search Intent in Ireland
If you're like most Irish customers, you’re probably Googling phrases like:
- “Best e-bike under €1,500 in Ireland”
- “Cycle to work scheme mountain bike options”
- “Tax-free electric bike Ireland 2025”
- “Cycle to work e-bike calculator Ireland”
These queries show a clear intent to buy smart, save money, and get the best cycling setup for both commuting and leisure. Make sure your research includes bike reviews, video test rides, and comparisons of specs.
Before You Buy: Key Tips
- Talk to HR: Confirm your employer is enrolled in the Cycle to Work Scheme
- Plan your budget: Know your limit and break it down between bike and gear
- Get a quote: Your retailer will provide an invoice for employer approval
- Submit paperwork: Let your employer handle the rest—easy!
- Track delivery: Once approved, your bike is usually ready within days
Bonus Tip: Insure Your New Bike
While not part of the scheme, bike insurance is a smart move, especially in urban areas. Policies in Ireland often cover theft, accidental damage, and third-party liability. It’s a small price to protect your investment.
Final Thoughts
The Cycle to Work Scheme is more than a tax break—it’s your ticket to a healthier, greener, and more cost-effective lifestyle. Whether you’re cruising through Dublin on an e-bike or exploring Wicklow trails on a mountain bike, you can enjoy all the benefits of cycling while saving serious cash.
By choosing the right bike, making the most of the scheme’s budget, and thinking ahead, you’ll not only maximise your savings—you’ll also enhance your daily life.
So what are you waiting for? The ride of your life might be just one tax-free purchase away.
Ready to roll? Check out top-rated e-bikes and mountain bikes at Cycle Centre Ireland and start your Cycle to Work journey today.