Expense Reimbursement policy in Germany



Modified on: Wed, 3 Sep, 2025 at 3:25 PM

TABLE OF CONTENTS



This article outlines the policies and procedures for travel, mileage, invoicing, and reimbursement of business expenses for employees based in Germany. 


Invoicing and Documentation

  • Invoices are required for larger items or when specified.
  • Reimbursements based on receipts (e.g., for meals) are considered a taxable benefit in kind and must be included in payroll.


Travel and Mileage

Vehicle TypeRate
Cars & Vans0.30 € /km
Motorcycles0.20€ /km

Mileage logs must include:

  • Date
  • Start/end destination
  • Purpose of travel
  • Mileage travelled

Parking and Toll

  • Submit as separate expense items.
  • Must include receipts.


Business Travel 

In the case of temporary job-related travel, employers may reimburse employees using lump sum per diem allowances, which are tax-free under the following conditions:


General Guidelines 

  • Reimbursement is only allowed as a lump sum. Individual receipts for meals or incidental expenses cannot be reimbursed.
  • The standard per diem rates for domestic travel are:
    • More than 8 hours of absence: €14.00
    • Day of arrival/departure for multi-day trips: €14.00
    • Full 24-hour absence: €28.00


Employees may be reimbursed for hotel expenses incurred during business travel, provided the following conditions are met:

  • Actual costs will be reimbursed based on the itemized hotel invoice, which must clearly list charges such as: room rate, breakfast, dinner (if applicable). 
  • The hotel invoice is issued in the name of the employer, or
  • The hotel reservation was made by the employer, or
  • A company policy is in place that explicitly authorizes the employee to book accommodations (e.g., specifying allowed hotel categories, meal options, etc.)


If none of the above can be demonstrated, the reimbursement may be treated as a taxable benefit in kind and included in payroll calculations.

Optional Increase & Tax Implications

  • Employers may choose to double the per diem amount, but the excess is subject to a 25% flat tax, payable by the employer.
    • Example: For a 10-hour trip, if €28 is reimbursed instead of €14:
      • €14 is tax-free
      • €14 is taxed at 25% → €3.50 tax paid by the employer

Meal Deductions

  • If breakfast, lunch, or dinner is provided, the corresponding amount must be deducted from the daily per diem (see Section III for deduction rates).
  • The location used to determine the applicable per diem rate is based on the place of arrival before midnight.


International Travel

  • For overseas business trips, country-specific per diem rates apply. However, the same principles regarding lump sums and deductions remain in effect.


Transport Service Rules

As of 2020, a flat rate of €8 per calendar day applies to truck drivers.






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