Per diem rates in Germany: a brief guide (2024)

Per diem is Latin for “for each day”, and

per diem rates for business travel

refer to fixed amounts that employers pay their employees to cover the costs of accommodation, meals, and incidental expenses incurred while travelling. This is intended to remove the administrative burden of employees submitting individual receipts for

expense reimbursements

. Governments usually set benchmark allowances for travel that account for factors such as average maximum accommodation costs, the general cost of living, and any travel regulations. Per diem rates vary depending on the destination for business travel and sometimes where the company is based, including some major cities and business hubs. 

Employers are not obliged to follow per diem rates. They can decide whether employees should submit expense reports or they can choose which per diem rates to apply. For example, a company might use per diem rates for meals and incidental expenses, but implement its own

corporate travel policy

to set accommodation and flight costs.

Per diem rates in Germany are set by the German government, and the rules are laid out in the country’s

Income Tax Act

. The rates vary based on the duration of travel and the destinations employees travel to. There are also different allowances depending on whether business trips are domestic or international and if employees travel for a multi-day business trip with an overnight component. 

The guidelines surrounding German per diem rates refer to only two expenses: 

As mentioned above, employers aren’t forced to adhere to per diem allowances for Germany. In fact, the guidelines on German per diem rates don’t account for certain expenses. Although the following expenses aren’t covered, employees will submit expense claims for them to their employer: 

While per diem rates in Germany are fixed amounts for meals and accommodation costs, these allowances vary depending on several factors, such as whether the trip is domestic or international and the trip duration. Let’s take a look at some of the per diem Germany guidelines. 

According to the official Income Tax Act document, the per diem flat rate for overnight stays is €20 and is only applicable in cases where the employee will be reimbursed. Daily allowances for meals bought during business travel within Germany vary based on whether employees are travelling for one or more calendar days. Here are some important details to note. One-day business tripsMulti-day business travelRates for multi-day business trips can be divided into three categories:Here are the current per diem rates for Germany based on the duration of business travel:

Employee A, based in Munich, travels to Berlin on Tuesday. They stay in Berlin for three nights and depart for Munich on Friday. Here are the per diems that Employee A is entitled to for meals and accommodation: 

The short answer is yes — and if your employees travel internationally, you need to know how these guidelines apply. The Income Tax Act lists three exceptions to the per diem rates when employees travel abroad:These allowances vary depending on the destination country. Plus, they may also vary depending on the specific city within the country the employee is travelling to.For example, while the accommodation allowance for Barcelona is €144 per night, the value for the Canary Islands is €103. In India, the lump sum meal allowances range from €21 to €50, while the accommodation allowances range from €85 to €185, depending on which city the employee travels to. The table below is intended to illustrate a sample of the variations in accommodation and additional meal allowances based on different destination countries and cities.

With exceptions to per diem rates at both national and city levels, it stands to reason that rates in Munich, Berlin, Stuttgart, Ramstein, and other key German cities and business hubs might vary. However, while the destination city impacts the rates, the company’s base location does not.

Whether your employees are travelling domestically or further afield to France, Spain, or The Gambia, understanding per diem rates for Germany ensures consistent, compliant, and accurate expense management, no matter the location. Using per diem allowances can also reduce the administrative work needed to settle expense claims and reimbursements. Travel management platform

TravelPerk

has plenty of features and integrations to help you with seamless business travel and expense management.

Get in touch today

to discover how TravelPerk can streamline and simplify your travel expense processes.