Travel allowances

Travel allowances, also called flat-rate travel expenses or per diem allowances, are fixed amounts that may be applied for certain costs in a travel expense report. They simplify the report because no individual receipt is needed, and they are recognised for tax purposes if the requirements of the Income Tax Act and the administrative practice of the Federal Ministry of Finance are met.

Typical travel allowances

• Per diems: in Germany €14 for more than 8 hours of absence and for days of arrival and departure, €28 for full days (§ 9 (4a) EStG); abroad, country rates apply.
• Mileage allowances: €0.30 per kilometre driven with a private car on business journeys.
• Overnight allowances: for employees if there is no hotel receipt, €20 per night in Germany (as of 2026), abroad depending on the country.

Legal background

The basis is § 9 EStG together with the administrative instructions of the Federal Ministry of Finance, in particular the wage tax guidelines and notes and the annual BMF letter on allowances abroad. They set out when allowances are tax-free and when individual proof is required.

What it means for companies and the self-employed

Allowances save administrative effort and create clear rules for reimbursement. Companies can pay them to employees tax-free if they are applied correctly. The self-employed and freelancers may also claim the same rates for meals and travel costs as business expenses. For overnight stays, however, they always need a receipt; there is no overnight allowance for them.

Travel allowances in Spesenfuchs

Spesenfuchs calculates the right per diem automatically from departure, return and destination, in Germany and abroad. Overnight stays without a hotel receipt are settled automatically with the overnight allowance. If there is a hotel receipt for a period, the allowance does not apply for those nights. For the self-employed, no overnight allowance can be selected. Journeys with your own car are reimbursed at the mileage rate; an individual rate per employee is possible.

Typical mistakes

• Double claims: allowance applied although the actual costs were already reimbursed
• No reduction of the per diem for meals provided
• Wrong amounts for trips abroad with different allowances

Legal basis and sources: § 9 EStG: income-related expenses, LStH 2026, Annex 25 III: travel expenses of employees