How does the mileage reimbursement rate in Hungary compare across Europe?

As of 2024, the mileage allowance rate in Hungary is 15 HUF (€0.038) per kilometre. This is generally lower than rates in many other European countries. Here's how it compares to some other nations:Finland: €0.57 per km (passenger car)France: €0.529 to €0.697 per km (varies based on vehicle power and mileage)Poland: PLN 0.89 (€0.20) to 1.15 PLN (€0.26) per km (based on engine size)Portugal: €0.36 per kmSpain: €0.26 per km (tax-free limit)Sweden: SEK 25 per 10 km (€0.22 per km)Switzerland: CHF 0.72 per km (€0.75 per km)Croatia: 2 HRK (€0.27) per kmNorway: NOK 3.50 per km (€0.31)Slovenia: €0.43 per km

Hungary mileage allowance explained (2024): tax rates and benefits

Are your employees using their private cars to get around Hungary for business trips? Understanding mileage allowances is a must!

Just like knowing the best route to avoid traffic jams, getting the mileage rates right keeps things running smoothly. Reimburse too little, and your employees might be unhappy. Reimburse too much, and you're spending more than you need to.

In this guide, we'll take the stress out of mileage allowance calculations and ensure smooth sailing (or driving, for this matter) for your employees. Csináljuk!

How does mileage allowance work in Hungary?

Mileage allowance refers to financial compensation that employers can provide to employees who use their own cars for business purposes. This reimbursement covers the wear and tear associated with the business travel. Importantly, the allowance is tax-free for employees, making it an attractive benefit.

Tax authorities, like the Hungarian National Tax and Customs Administration (NAV), are responsible for establishing maximum tax-free reimbursement rates for mileage allowances. These rates are outlined in the Government Decree No. 16/2023 (I. 27.).

There are two main categories for mileage allowance in Hungary:

Business travel: for employees using their own cars for business trips, the maximum tax-free reimbursement rate is currently HUF 15 per kilometre (€0.038)

Commuting: employers are required by law to reimburse employees for commuting to work by car at a minimum rate of HUF 18 per kilometre (€0.045). This represents 60% of the maximum business travel rate. However, if the employee commutes from outside the municipality where their workplace is located, employers can choose to reimburse them up to HUF 30 per kilometre (€0.076) tax-free.

It's important to remember that these are the maximum allowable rates. Employers have the flexibility to set a lower reimbursement amount within these limits. However, they are still responsible for maintaining proper records to demonstrate compliance with Hungarian tax regulations.

What are the mileage allowance rates in Hungary for 2024?

In Hungary, mileage allowance for private cars used for business travel follows a flat rate system. This means the reimbursement amount is calculated based on the distance travelled, not fuel costs.

Private cars or own cars

The current maximum tax-free reimbursement rate for business travel using private cars is HUF 15 (€0.038) per kilometre across all vehicle types—including compact, SUV, electric, hybrid or any other model.

Here's how you can calculate the mileage allowance based on distance:

Distance (km)

Car reimbursement (HUF)

Car reimbursement (EUR)*

250

3,750

€9.60

350

5,250

€13.40

100

1,500

€3.80

(Source)

^{*The EUR conversion is approximate based on the exchange rate as of July 5, 2024 and may fluctuate slightly.}

Tax exemption benefits: This allowance is tax-free up to the standard rate of HUF 15 (€0.038) per kilometre. Any reimbursement above this rate would be taxable income. So if the employer’s reimbursement rate is:

HUF 20 per kilometre or (250 km * HUF 20/km = HUF 5,000 (€13), the excess taxable rate is HUF 1,250 (€3.17).

Note: The mileage allowance in Hungary covers vehicle wear and tear but does not extend to fuel costs, tolls, or parking fees, which must be reimbursed separately (more on this later in the article).

Want to write a fair and transparent corporate travel policy? Check out our complete guide and start with a car allowance policy today.

Commuting by public transport

In Hungary, employers are also obligated to reimburse employees for commuting expenses using public transportation (train, bus, tram, etc.). It is important to note that this reimbursement applies to employees who are EEA citizens with a permanent or temporary address within the European Economic Area.

However, most companies have established travel policies outlining travel allowances or expense reimbursements. These policies typically specify the types of expenses covered (including public transport tickets) and how to claim reimbursement.

Here’s a quick breakdown of the approximate costs via public transport:

City

Transport type

Estimated cost (EUR)

Estimated travel time (hours)

Prague (Czech Republic)

Bus

€22-35

6-8

Vienna (Austria)

Train

€13-32

2-3

Berlin (Germany)

Train

€25.79-69.90

10-12

Germany

Train

€45-60

Germany

Bus

€70-120

13.5

Netherlands

Bus

€68-74

Italy

Train

€29-86

Varies depending on route

(source 1, source 2, source 3)

It's important to note that prices can fluctuate significantly based on factors such as:

How far in advance you book

The specific route and distance

The type of transport (bus, train, or plane)

The class of service (e.g., first-class vs. second-class on trains)

Peak travel times and seasons

Travelling on business? Get a grip on expenses with our corporate mileage reimbursement policy guide.

What is not included in the mileage allowance in Hungary?

The Hungarian mileage allowance system focuses on reimbursing the wear and tear associated with using a private car for business travel. Here’s an overview of what expenses are not covered by this system:

Fuel costs: the mileage allowance is a flat rate, not a reimbursement for actual fuel expenses. This means the HUF 15 (€0.038) per kilometre doesn't directly correspond to the cost of fuel used on the trip.

Tolls and parking fees: mileage allowance doesn't cover travel expenses like tolls, parking fees, or other out-of-pocket expenses incurred during the business trip. Employees need to submit separate receipts for these costs to be reimbursed.

Meals and accommodation: per diem or daily allowance basically covers accommodation and meal allowance. These are separate policies and require separate expense reports.

Commuting allowance: Hungary has separate regulations for commuting reimbursements. Employers are required by law to reimburse employees for commuting to work by car at a minimum rate of HUF 18 per kilometre (€0.04). This represents 60% of the maximum business travel rate. However, if the employee commutes from outside the municipality where their workplace is located, employers can choose to reimburse them up to HUF 30 per kilometre (€0.07) tax-free.

Take the hassle out of business trips to Hungary and beyond, with TravelPerk

Heading to Hungary for business? Juggling flights, hotels and paperwork can quickly become a headache. TravelPerk streamlines business travel management—no matter where business takes you.

TravelPerk is a one-stop app for booking corporate flights, accommodation, and car rentals. It offers an extensive travel inventory with tens of thousands of negotiated rates! No more searching multiple websites, trying to compare fluctuating prices or managing separate employee bookings.

Plus, TravelPerk integrates with your favourite expense management tools, like Spendesk, Rydoo and Payhawk. This allows employees to easily track and submit expenses incurred during their trips, ensuring accurate expense reporting and reducing your company's administrative burdens.

See how to save your company time and money on business travel.

Frequently asked questions about mileage allowance in Hungary

How does the mileage reimbursement rate in Hungary compare across Europe?

Mileage allowance in Hungary: everything you wanted to know (2024)

How does mileage allowance work in Hungary?

What are the mileage allowance rates in Hungary for 2024?

Private cars or own cars

Commuting by public transport

What is not included in the mileage allowance in Hungary?

Take the hassle out of business trips to Hungary and beyond, with TravelPerk

See how to save your company time and money on business travel.

Frequently asked questions about mileage allowance in Hungary

How does the mileage reimbursement rate in Hungary compare across Europe?

Make business travel simpler. Forever.

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