Per diem allowances (Verpflegungsmehraufwand) 2026: the current rates for Germany and abroad

Anyone who travels frequently for work is familiar with German per diem allowances. Yet in practice, questions often come up: which rates apply in which country? How should they be reported correctly? What will change in 2026?

Whether it is a meeting in Munich or a business trip to London, different rules apply depending on the travel duration and destination. Errors can lead to tax adjustments and complications with the tax authorities.

Learn everything you need to know about Verpflegungsmehraufwand, German per diem allowances in 2026: the applicable rates, how to avoid mistakes, and how smart tools simplify expense reporting. Stay in control of your travel expenses and remain compliant with local tax regulations.

Key takeaway: domestic rates remain unchanged in 2026, while international travel rates are updated. The Federal Ministry of Finance has published the new figures in its latest guidance.

Contents

1. Per diem allowances: what does it mean?
2. Per diem allowances 2026: rates in Germany
3. Per diem allowances 2026: international rates

Table with 2026 per diem allowances

1. Per diem allowances vs actual costs: what is the difference?
2. Risks of incorrect reporting
3. Reporting per diem allowances: three methods compared
4. Per diem allowances: who is affected and how?
   • As an employee
   • As an HR manager
   • As a finance leader
   • As an SME owner
5. Automatically calculate per diem allowances

Conclusion
Frequently asked questions (FAQ)

1- German per diem allowances (Verpflegungsmehraufwand): what does it mean?

Business travel often leads to higher meal costs than everyday life. Takeaway breakfast, lunch at a restaurant, evening drinks: per diem allowances compensate for these additional expenses.

In Germany, the flat rate method is usually used. A fixed amount is paid automatically, regardless of the actual expense. No receipts are required, only confirmation of the business trip.

The applicable rate depends on travel duration and destination. If the absence lasts less than 8 hours, there is no reimbursement. Destinations are divided between domestic travel and international travel.

Per diem allowances apply when employees temporarily leave their home and primary workplace for business purposes. These tax free employer reimbursements only cover additional costs caused by the absence. For short local trips or travel under the 8 hour threshold, the allowance does not apply.

Important: per diem allowances do not cover the actual travel expenses. Transportation and accommodation costs are reimbursed separately and typically covered in full.

2- Per diem allowances 2026: rates in Germany

A legislative reform initially planned to increase per diem rates in 2024, but the adjustment was not implemented. As a result, the per diem allowances for business travel within Germany remain unchanged in 2026.

• Half day allowance (Halbtagespauschale): if you are away between 8 and 24 hours, or on the first and last day of a multi day trip, the allowance is €14.
• Full day allowance (Ganztagespauschale): if you are away from your usual workplace for more than 24 hours, the allowance is €28.

The 1:2 ratio between both allowances remains unchanged.

Meal deductions for meals included in accommodation prices also remain the same:

• 20% (€5.60) for breakfast
• 40% (€11.20) for lunch or dinner

These amounts are deducted from the €28 full day allowance. The accommodation allowance (Übernachtungpauschale) for domestic travel remains €20 per night in 2026. In practice, companies usually reimburse actual hotel costs in full.

3- Per diem allowances 2026: international rates

For international business travel, rates vary by country and often by city or region. The allowances reflect cost differences between destinations.

This is why per diem rates in major cities such as Paris, Warsaw, and Madrid can differ significantly from other regions within the same country. In most cases, international rates are higher than domestic allowances.

👉 A complete list of all countries is available in the official guidance.

Below is the table with the 2026 per diem allowances (Verpflegungspauschalen) in euros. Changes compared with 2025 are highlighted in bold.

TRAVEL DESTINATION	8 to 24 hours*	More than 24 hours	Accomodation
BELGIUM	40	59	141
DENMARK	50	75	183
CHINA
Beijing	38	57	184
Shanghai	32	48	142
Hong Kong	56	83	209
Other regions	32	48	142
FRANCE
Paris (and departments 77, 78, 91 bis 95)	39	58	159
Other regions	36	53	105
UNITED KINGDOM
London	44	66	163
Other regions	36	53	105
ITALY
Milan	28	42	191
Roma	32	48	150
JAPAN
Tokio	33	50	285
Other regions	22	33	141
NETHERLANDS	39	58	167
AUSTRIA	33	50	117
POLAND
Wroclaw	23	34	124
Warschau	27	40	143
Other regions	23	24	124
RUSSIAN FEDERATION
Moskow	20	30	235
St. Petersburg	28	19	133
Other regions	28	19	133
SWITZERLAND
Bern	55	82	195
Geneva	47	70	197
Other regions	47	70	195
SPAIN
Madrid	28	44	131
Canary Islands	24	36	103
Palma de Mallorca	29	44	142
Barcelona	23	34	144
Other regions	23	34	103
USA
San Francisco	40	59	327
Chicago	44	65	233
Los Angeles	43	64	262
Boston	42	63	333
New York City	44	66	308
Atlanta	52	77	182
Washington, D.C.	44	66	203
Houston	41	62	204
Miami	44	65	256
Other regions	40	59	182

*or on the day of arrival or departure

These values apply to absences between 8 and 24 hours or to the arrival and departure days.

Even for international travel, allowances may be reduced when meals are already paid by the company: 20 percent for breakfast and 40 percent for lunch or dinner.

Travel expense policies can be configured in the N2F platform. The correct allowances are automatically applied based on the travel dates entered.

4- Per diem allowances vs actual costs: what is the difference?

Per diem allowances are tax free flat rate reimbursements for business travel away from the primary workplace. They do not require receipts or proof of actual expenses.

In Germany, the domestic allowance is €14 for more than 8 hours and €28 for more than 24 hours. International allowances are higher and vary by country. These flat rates apply regardless of the employee’s real spending.

Actual meal reimbursements require receipts. However, tax free reimbursement is limited to the amount of the allowance. Employees can claim higher costs on their tax return, but the deduction remains capped at the standard allowance.

• Advantages of the allowance: simple and tax free.

• Disadvantage: it may not cover unusually high meal costs.

Most companies choose allowances because reimbursing actual expenses requires more administration. If meals are included in hotel rates, the allowance must be reduced accordingly.

Example: business trip to Paris

Here is a concrete example. Mr Winter works in Dresden and travels to Paris on Monday at 10:00. He returns on Thursday at 16:00, so both arrival and departure days are counted. Breakfast is included in the hotel rate for three days and paid by the company.

Expense reporting:

• Arrival day, no breakfast: €39
• Day 2 and day 3: €58 per day minus €11.60 breakfast deduction = €46.40 per day
• Departure day: €39 minus €11.60 breakfast deduction = €27.40

Total reimbursement: Mr Winter receives €159.20 in per diem allowances for his four day trip to Paris.

5- Risks of incorrect reporting

Errors in expense reporting can create consequences for both employers and employees. Common issues include duplicate receipts, incorrect allowance calculations, or inaccurate travel times. Fraud attempts also cost companies significant amounts.

A travel and expense management solution with automated compliance checks and fraud detection helps prevent these problems.

Audit related risks

The most common risk is applying the wrong allowance. For example, using international rates for domestic travel or misapplying the 8 hour or 24 hour rule. Tax authorities check these details carefully.

The second most common issue is forgetting to apply deductions for meals included in hotel prices. Missing travel confirmations can also raise red flags. Audits can review records going back up to four years.

Financial consequences

If errors are found, employers may have to pay additional taxes plus 6 percent interest. In cases of gross negligence, fines can reach €50,000.

Example: 100 incorrect allowances at €28 each can generate more than €3,500 in additional costs.

Employees may have to repay amounts that are reclassified as taxable income. In cases of intentional misconduct, termination may occur. Repeated tax issues can also affect creditworthiness.

Recommendation: specialized travel and expense management software combined with regular training helps ensure compliant expense reporting and significantly reduces risks.

6 – Reporting per diem allowances: three methods compared

Per diem allowances can be reported in three different ways. However, not every method suits every company. The differences become clear when travel volume increases or when international allowances vary by country.

Method	Advantages	Disadvantages
Manual	Free and flexible for very few trips	Time consuming, high error risk for allowances and deductions, higher audit risk
Excel	Templates with formulas are available, manageable for small businesses	Manual data entry, outdated when regulations change, version control issues in teams
Software such as N2F	Automatic calculation based on travel dates and destination, policy checks, compliant reporting, centralized reporting	Monthly cost, onboarding time

How smart software works

Enter the travel dates and destination. The system automatically calculates the correct allowances, including domestic or international rules, 8 hour and 24 hour thresholds, and meal deductions. The process continues with approval workflows and legally compliant archiving.

Benefits are clear: consistent policy enforcement, less administrative work, and full transparency.

Which method for which company

Manual reporting only works for companies with fewer than five trips per month. Excel may work for small teams. For higher volumes, specialized software can reduce reporting time by up to 80 percent and significantly reduce tax risks.

7- Per diem allowances: who is affected and how?

Per diem allowances affect everyone involved in business travel, from tax free reimbursements to administrative responsibilities.

As an employee

You receive the allowance tax free from your employer, €14 or €28 for domestic travel. No receipts are required. If your employer does not reimburse the allowance, you can claim it as a tax deduction in your tax return for up to three months per workplace. Any deductions for hotel meals are applied by the employer.

As an HR manager

The HR team verifies travel requests and ensures compliance with the 8 hour and 24 hour rules. Business travel must be documented accurately. Regular training helps employees understand allowances and meal deductions. Software significantly simplifies expense reporting and compliance.

As a finance leader

Accounting reimburses allowances tax free, applies meal deductions, and keeps supporting documentation for 10 years using secure digital archiving. In case of tax audits, finance teams are responsible for adjustments and interest. Automated systems significantly reduce errors, especially with the updated international rules for 2026.

As an SME owner

Correctly applying allowances can reduce tax exposure. Combine meal allowances with reimbursement for transportation and accommodation costs. Clear travel expense policies help prevent mistakes. For entrepreneurs, per diem allowances are particularly useful for client visits: tax free and receipt free.

8 – Automatically calculate per diem allowances

Per diem rules can appear complex: different allowances depending on time away from home and the primary workplace, destination, travel duration, and meal deductions.

This is where professional tools make a difference. Automated systems calculate the correct allowances as soon as travel data is entered, including compliance checks. Travel expense policies are embedded in the platform and allowances are automatically applied.

Manage your expense reports quickly, accurately, and fully digitally. Save time, reduce errors, and maintain full visibility over travel expenses. Easy to use and flexible for companies of any size.

Conclusion

Per diem allowances may seem complex, but with the right knowledge they allow companies to manage travel expenses efficiently and in compliance with local tax regulations.

With N2F, you manage expense reports quickly, accurately, and fully digitally. Save time, reduce errors, and maintain full visibility across all business expenses. Easy to use and flexible for companies of any size. Learn more.

Frequently asked questions (FAQ)