SPENDESK_Header_ExpenseRates_02 Cropped
Business travel spend 24 min read

How to calculate Germany’s per diem rates in 2019

Benjamin Romberg

Germany is known worldwide for its cultural commitment to efficiency and attention to detail. For the most part, these ideas have served the nation well - it boasts the fourth-largest economy in the world; first in Europe. 

But in some cases, efficiency and precision butt heads against one another. And business trips are one of those cases. 

Employees in German companies have fixed per diem rates to cover travel expenses. These are set by the government, which in theory makes things more efficient. Companies don’t need to create their own policies - they just follow the rules. 

But there’s a problem: the rules are fairly complex, and lots of businesses struggle to follow them.

Efficiency, meet precision. 

In this article, we’re going to give you a clear overview of the law for business travel within Germany and abroad.

New Call-to-action

What are per diem rates?

This will probably be clear to most readers, but it’s important that we set out just what we’re talking about. While travelling for work, certain costs are incurred by the employee and should be reimbursed by the company

Some costs are expected to be covered your per diem, and therefore don’t need to be claimed separately. You’ll simply want to keep these costs below the daily per diem rate you’ve been allocated. 

Other costs aren’t covered by your per diem, which means you should include them in an expense claim.

Covered by per diem

These will fall under the fixed rates below, and should not be claimed separately.

  • Meals purchased while travelling for work

The law (see below) only talks about meals. Some employees will choose to include other small costs (metro tickets or stationery for example), rather than seeking reimbursement for these minor items.

Not covered by per diem

These expenses should still be reimbursed by the company as part of a separate expense claim

  • Flights
  • Transport to and from the airport or meetings
  • Accommodation if staying overnight
  • Meals and other costs incurred while meeting clients

Keep this distinction in mind when travelling. Now, let’s look at the specific rules for per diems. 

The law around German per diem rates

The applicable law in this case is the statute on income tax - more precisely section 9, paragraph 4(a) (link in German). This covers meals for travelling workers, and essentially states the following: 

If the employee works outside their home and first place of work (external occupational activity), a lump sum for meals is paid in compensation for the additional expenses. 

[The actual rates paid are in the next section of this post.] 

Since it would be time-consuming, complicated, and potentially unfair to have individual businesses set their own rates, the government does it for them. So as long as the rates are easy to understand and make sense, this is a good thing. 

It also prevents the need for itemised expense claims - something employees generally hate. You don’t need to submit every receipt and take hours filling in expense reports. If you travel for X number of days, you receive Y in reimbursement.

The rates depend on travel duration and destination (see table below).

Note: You can’t claim these rates twice.

Two fee rates for all business trips

At the end of each year, the Federal Ministry of Finance publishes the applicable meal allowances for the following year. The current per diem rates (German link) have been applied since January 1, 2019.

Although the lump sums have changed for some countries, the basic principle remains the same. Since January 1, 2014, only two meal per diems apply, both within Germany and abroad. These are based on the travel duration:

  • Small meal allowance: for business trips lasting more than eight hours and less than 24 hours. This rate also applies to arrival and departure days of multi-day business trips.
  • Large meal allowance: For business trips that last longer than 24 hours. This rate is applied to every single day.

Important note: The calculation is based on full calendar days. In fact, to claim a full day, the traveller actually has to be away from home (or the office) from 0:00 to 24:00.

german-business-travel

Anyone who went on a business trip before 2014 will find that a few things have changed with the reform of travel expenses. The most important change: business trips with a duration of less than eight hours can no longer be billed.

Current per diem rates in Germany (2019)

The rates for business travel in Germany have remained unchanged in 2019, as in previous years. In fact, the amount was changed the last time with the change from D-Mark to Euro (€), and has since remained untouched. 

Even with the 2014 reform, only the categories were changed, but not the amount of the lump sums.

Today, these are the lump sum amounts for German per diems:

Between 8 and 24 hours (or day of arrival/departure) Minimum duration of 24 hours Overnight package
€12 €24 €20

For business trips with a duration of less than 24 but more than eight hours, €12 can be noted in the travel expense report. 

With a minimum duration of 24 hours, €24 euros can be claimed for each full day, and €12 euros for arrival and departure days (which will obviously be less than 24 hours). 

The overnight flat rate is €20 - to be used for accommodation. In reality, accommodation will usually be covered fully by the employer, so travelling employees won’t claim this cost. But in cases where accommodation is not covered - for freelancers, for instance - this cost can usually be claimed through an individual’s income taxes.

Why is the overnight lump sum so low? One theory is that this should prevent fraudulent charges if business travelers choose to stay with friends or relatives. 

You can find an example calculation in our free template for the travel expense report.

Exceptions to these rules

No good rules or regulations would be complete without exceptions. Thankfully, in this case they’re simple and quite brief.

First, the food allowance will only be paid in full if the business traveller actually pays for their own food. If the employer pays for meals on the trip, the rate will be reduced accordingly:

  • If breakfast is included (in the hotel fee, for example), 20 percent of the flat rate will be deducted for the day.
  • If lunch or dinner is provided by the employer, 40 percent of the fee will be removed.

For shorter business trips, it should be noted that meals provided by the employer are subject to income tax. Here are the so-called non-monetary benefits which must be taken into account in at tax time:

  • For breakfast, the value is currently €1.77.
  • For a lunch or dinner, €3.30 will be charged.

Foreign packages for business travel

As already mentioned, the categories for food allowances for business trips in Germany and abroad apply equally. But the rates of reimbursement may differ significantly depending on the country.

global-business-travel

While an overnight stay in London, for example, costs €224, in Rome the value is only €160. For a day in Tokyo, the package is €66, but in Athens it is only €46.

The list also includes prices in different regions in the same country. For example, in the table at the end of this article, you'll see that a stay in Miami is more expensive than in Los Angeles.

Unlike the lump sums for business travel within Germany, the rates for foreign destinations are frequently adjusted. The update for 2019, for example, includes changes for more than 40 countries, including Austria, Greece and Singapore.

To help, we put together a list with the most frequented destinations and their respective meal allowances (below). 

German per diems: clear as mud

Hopefully this article has helped to clear up some of the confusion around the German per diem system. In some ways it all seems unnecessarily complex, but once you have the basic concepts it should be fairly simple to repeat regularly. 

The key parts to remember are the specific rates you can claim for each day, and that you can’t claim costs that have already been covered by your employer.

To help you manage your next business trip and keep on top of all spending (per diem or not), download our free expense claim template:

New Call-to-action

Fees for business trips abroad

Note: This list contains the most common travel destinations. An overview with all countries can be found here (German link).

 

Country Per diem amount (€) Overnight package (€)
  8-24 hours (or day of arrival/departure) Per full day  
Argentina  23 34 144
Ethiopia  18 27 86
Australia      
- Canberra  34 51 158
- Sydney  45 68 184
- Others  34 51 158 
Belgium 28 42 135
Brazil      
- Brasilia  38 57 127
- Rio de Janeiro  38 57 145
- Sao Paulo  36 53 132
- Others  34 51 84
China      
- Chengdu 24 35 105
- Hong Kong 49 74 145
- Guangzhou 27 40 113
- Beijing 31 46 142
- Shanghai 33 50 128
- Others 33 50 78 
Denmark 39  58 143
France      
- Lyon   36 53 115 
- Marseille  31 46 101 
- Paris + Departments 92/93/94  39 58 152 
- Strasbourg 34  51 96 
- Others 29  44  115
Greece      
- Athens  31 46 132 
- Others 24  36 135 
Great Britain      
- London   41 62 224
- Others   30 45 115 
India      
- Chennai  21 32 85
- Calcutta 24  35 145
- Mumbai  33 50 146 
- New Delhi  25 38  185 
- Others  21 32  85 
Iran 22  33 196
Ireland 29  44 92
Israel 37  56 191 
Italy      
- Milan  30 45  158 
- Rome  27  40 135 
- Others  27 40  135 
Japan      
- Tokyo 44  66 233
- Others 34  51 156
Canada      
- Ottawa   32 47 142 
- Toronto  34 51 161 
- Vancouver   33 50 140 
- Others 32  47 134 
Luxembourg 32  47 130
Malaysia  23 34 88
Netherlands  31 46 119
Nigeria  42 63 255
Norway  53 80 182
Austria  27 40 108
Poland      
- Wrocław 22  33 117
- Gdańsk  20 30 84
- Krakow  18 27 86
- Warsaw  20 29 109 
- Others 20  29 60 
Portugal  24 36 102
Romania      
- Bucharest  21 32 100
- Others  17 26 62
Russian Federation      
- Yekaterinburg 19  28 84
- Moscow  20 30 110
- St. Petersburg  17 26 114
- Others  16 24 58
Sweden  33 50 168
Switzerland      
- Geneva  43 64 195
- Others  41 62 169
Singapore 36  54 197
Slovakia  16 24 85
Slovenia  22 33 95
Spain      
- Barcelona 23  34 118
- Canary Islands  27 40 115
- Madrid 27  40 118
- Palma de Mallorca  24 35  121 
- Others  23 34  115 
South Africa      
- Cape Town  18 27 112
- Johannesburg  20 29 124
- Others 15  22 94
Taiwan  34 51 126
Czech Republic  24 35 94
Turkey      
- Istanbul  24 35 104
- Izmir 28  42 80
- Others  27 40 78
Ukraine 21  32 98
Hungary  15 22 63
U.A.E.  30 45 155
USA      
- Atlanta   41 62 175
- Boston  39 58 265
- Chicago 36  54 209 
- Houston  42 63 138 
- Los Angeles  37 56 274 
- Miami  43 64  151
- New York City  39 58  282
- San Francisco  34 51  314
- Washington, D.C.  41 62 276 
- Others  34 51 138 

More travel articles

Spendesk-request-a-demo

Business travel spend Spend management
Stay in the know

The latest spend management insights. Straight to your inbox.

rocket

Benjamin Romberg

Benjamin Romberg hat zunächst Erfahrung als Journalist im Wirtschaftsressort der Süddeutschen Zeitung gesammelt, bevor er in den Bereich Marketing und PR wechselte. Bei Spendesk kümmert er sich um die redaktionellen Inhalte für den deutschen Blog sowie um die Öffentlichkeitsarbeit.