What is per diem allowance and how is it calculated?

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⚠️ Note: This article is for informational purposes only and does not constitute legal or tax advice. For binding information, please consult your tax advisor or the responsible tax office.

What is per diem?

Per diem (also called Verpflegungspauschale or Tagegeld in German) is a flat-rate daily allowance your company can reimburse when you travel for work and are away from your regular workplace or home for business reasons.

Instead of collecting receipts for every meal, you receive a fixed amount per day based on where you travelled and for how long. The rates are published annually by the German Federal Ministry of Finance (BMF) under §9 Abs. 4a EStG and apply only to employees subject to German income tax (Lohnsteuer).

Per diem is available on 💻 web and 📱 mobile app, on all Qonto plans except Basic.

There are two types of per diem:

  • Meal allowance (Verpflegungsmehraufwand) — covers daily meal costs. This is the most common type.
  • Overnight allowance (Übernachtungspauschale) — covers accommodation costs when your company does not pay for your hotel.

How is it defined?

The BMF publishes rates each year for:

  • Domestic travel (within Germany): fixed rates regardless of the city
  • International travel: country-specific rates for 200+ destinations, with city-level rates for ~40 major cities (e.g. Paris, London, New York, Tokyo)

The rates that apply are always the rates in effect for the year of travel — not the year you submit the expense.

2026 domestic rates (Germany):

Day type Rate
Full day (24 h or middle day of a multi-day trip) €28
Half day (first or last day of a multi-day trip, or a single-day trip >8 h) €14
Overnight allowance (accommodation not paid by employer) €20/night

How is it calculated?

Step 1 — Classify each day

Multi-day trips (with at least one overnight stay):

  • First day of travel → half-day rate, regardless of departure time
  • Middle days (full calendar days away) → full-day rate
  • Last day of travel → half-day rate, regardless of arrival time

Single-day trips (no overnight stay):

  • Away for more than 8 hours AND departure before 16:00 → half-day rate
  • Away for 8 hours or less → not eligible (no per diem)
  • Departure at or after 16:00 → not eligible (no per diem)
  • If you make multiple same-day trips, the hours can be added together to reach the 8-hour threshold.

Trips crossing midnight (e.g. 22:00 → 03:00, under 24 h total): counted as 2 days — you receive a half-day rate for each calendar day.

Step 2 — Select the rate for each day

The rate is based on where you were at the end of the calendar day (last stop before midnight, local time):

  • Domestic day → Germany rate
  • International day → country (or city) rate from the BMF table
  • Exception (return day): if you travel back to Germany on the last day, the rate of the last foreign country you visited that day applies — not the German domestic rate
  • If your destination has no specific BMF rate, the Luxembourg rate is used as a fallback

Step 3 — Apply meal deductions

If your company or the event organiser provided a meal, your allowance for that day is reduced. Deductions are always calculated against the full-day rate (€28 for Germany), even on half-days.

Meal provided Deduction Amount (Germany)
Breakfast 20% of full-day rate €5.60
Lunch 40% of full-day rate €11.20
Dinner 40% of full-day rate €11.20

Your daily amount can never go below €0 — if combined deductions exceed your entitlement, the day is set to €0.

Step 4 — Add overnight allowance (if applicable)

If you paid for accommodation yourself, add the overnight allowance per night:

  • Germany: €20/night
  • Abroad: country-specific BMF rate

No supplement is added if your company booked and paid for the hotel.

Step 5 — Sum up

Total per diem = Σ (daily net allowances) + Σ (overnight supplements)

Worked example: 3-day domestic trip to Germany

An employee travels for three days. Breakfast is provided by the hotel on Day 2.

Day Type Base rate Deduction Net
Day 1 — departure Half day €14 none €14.00
Day 2 — full day away Full day €28 −€5.60 (breakfast) €22.40
Day 3 — return Half day €14 none €14.00
Total       €50.40

Worked example: 2-day international trip (Paris)

An employee travels from Germany to Paris for a conference. The hotel is not paid by the employer (overnight allowance applies on Day 1).

Day Type Meal allowance Overnight Total
Day 1 — arrival Paris Half day €39 €159 €198.00
Day 2 — return to Germany Half day €39 (Paris rate) €39.00
Total       €237.00

Note: On the return day, the Paris (last foreign country) rate applies — not the German rate.

What are the edge cases I should know about?

Trip under 8 hours (single-day)

No per diem is calculated. A trip of exactly 8 hours also does not qualify.

Single-day trip departing at or after 16:00

Even if the total absence exceeds 8 hours, the trip does not qualify for a per diem allowance.

All meals provided

If breakfast, lunch, and dinner are all covered, the total deduction equals or exceeds the daily allowance — your net per diem for that day is €0.

Half-day with heavy meal deductions

Deductions are calculated against the full-day rate (€28), not the half-day rate. On a half-day with two meals provided, deductions may exceed the €14 entitlement — the day is set to €0.

Multi-destination trip

The rate applied to each day is determined by where you were at midnight (local time) on that calendar day. Example: if you were in Paris until 11 pm and arrived in London at midnight, the London rate applies for that day.

Returning to Germany

On your return day, the last foreign country's rate applies — not Germany's domestic rate.

Destination not in the BMF table

If your destination country has no specific BMF rate, the Luxembourg rate is used as a fallback.

Trips longer than 3 months (3-Monatsfrist)

Under German tax law (3-Monatsregelung), per diem can only be claimed for up to 3 months of continuous travel at the same location. A single per diem item cannot span more than 3 months. The clock resets after a 4-week break.

Overlapping trips

If two per diem items in the same expense report cover overlapping dates, you will see a non-blocking warning. You can still submit, but we recommend reviewing dates before doing so — your approver will also see the warning.

Travel dates before 2026

Qonto only supports per diem from 2026 onwards. Travel dates before 2026 cannot be submitted.

Who can access per diem on Qonto?

Per diem is available on all Qonto plans except Basic.

All roles except Accountant can create and submit per diem expenses — the same access as expense reports.

Per diem items live inside expense reports: you add a trip as an item within an expense report, alongside any receipts or mileage claims for the same journey.

To get started, head to Expenses > Expense reports > Create expense report.

For more information on expense reports, check out our dedicated FAQ: Need support to introduce Expense Report on Qonto to your employees?