Germany Expense Allowance Table 2025: Updated Per Diem Rates

Note: The planned increase in the expense allowances as part of the Growth Opportunities Act was not implemented. The flat rates for domestic business trips will therefore remain unchanged in 2025.

From January 1, 2024, the overnight allowance for professional drivers (truck drivers) was increased from €8 to €9 per calendar day. This lump sum will continue to apply unchanged in 2025. You can therefore continue to claim €9 as an overnight allowance for every night you spend in your vehicle.

Lump sums for expenses abroad in 2025

The expense rates abroad differ significantly in some cases from those in Germany. Among other things, the BMF is guided by the cost of living in the various countries and adjusts the expense allowances accordingly each year.

For arrival and departure days, the small expense rate of the respective country is calculated. If two different countries with different expense rates are involved or if different expense rates apply in one country, the higher amount may be selected.

Below is an excerpt of the expense rates from the current BMF table for some popular destinations for German business travelers from January 1, 2025:

Note: In the linked PDF file from the Federal Ministry of Finance (BMF), all amounts that have changed compared to the previous year are highlighted in bold. A complete overview of the current expense allowances for over 180 countries and parts of countries can be found directly in the official BMF letter. Click here for the list of travel expense allowances 2025.

Development of the expense allowances

The per diems for meals change every year. Here you will find an overview of the values from recent years:

• Additional per diem expenses 2024
• Additional expenses for meals 2023
• Additional expenses for meals 2022
• Additional meal expenses 2021

Interesting facts about expense allowances

Entitlement to expenses

The employer is not obliged to pay expenses. If the employer does not reimburse expenses, employees can claim the additional expenses for meals as income-related expenses in their annual income tax return.

Since 2020, the flat rates for additional subsistence expenses in Germany have remained unchanged at €14 for an absence of more than 8 hours and €28 for an absence of at least 24 hours. These flat rates will continue to apply in 2025.

Please note that there is no specific annual allowance for expenses. Instead, the above-mentioned lump sums per day of travel can be recognized as income-related expenses if the employer has not reimbursed them.

Reduction of the expense allowances

The regulations on the reduction of per diems for meals will remain unchanged in 2025.This means that if meals are provided by the employer or by third parties at the employer's instigation, the per diem meal allowance will be reduced on a daily basis.

In the case of meals provided, the per diems are reduced as follows:

The reductions refer to the 24-hour flat rate for the respective travel day.

Expenses payment limited in time

The maximum limit for the payment of expense allowances is generally three months. This rule is also knownas the three-month limit. If the employee remains at an external location for longer than three months, tax-free meal allowances can no longer be paid or claimed as income-related expenses.

In principle, the three-month period applies to employees who have a primary place of work. However, it does not apply to employees without a fixed place of work, such as professional drivers or fitters.

An interruption of at least four weeks means that the three-month period starts again, provided that the employee did not work at the same place of employment during this time.

The legal basis for this regulation is set out in Section 9, Paragraph 4a, Sentence 6 of the Income Tax Act (EStG).

Note: The information provided in this article is for general guidance. Travel expense regulations contain many special features and exceptions. Consult a tax advisor for legally binding advice.

Expense reporting made easy with the Mobilexpense app

Travel expense reports don't have to be complicated. The Mobilexpense app automates the calculation of expenses, meal allowances and accommodation costs so that employees can submit their travel expenses with minimal effort.

Simply enter the travel data and the app automatically calculates the applicable per diems - based on the current BMF guidelines. Employees can also easily enter their own company guidelines to ensure maximum flexibility.

Thanks to the intuitive operation, employees can enter their expenses directly while on the move, while the app calculates all relevant amounts. Finance teams benefit from automated workflows that reduce manual checking and thus save valuable time.

The Mobilexpense app integrates seamlessly with existing accounting systems and enables paperless management of travel expenses - efficiently, compliantly and without unnecessary bureaucracy.