If you travel for business and pay for meals out of pocket, the German per diem regime lets you convert those costs into a tax-recognised lump sum without collecting receipts for every coffee and sandwich. The rates for 2026 were published by the BMF in December 2025 and took effect on 1 January.
The system is straightforward in principle. In practice, most directors and freelancers either leave money on the table or get the method wrong in ways that invite a Finanzamt question later. This guide covers the 2026 rates, how the method works, and the traps that catch people out most often.
What per diem for meals actually is
Per diem for meals, known in German as Verpflegungsmehraufwand, is a tax-recognised flat rate for additional meal costs while travelling for business. The rate depends on the destination and the type of travel day. It replaces meal-by-meal expense claims rather than sitting on top of them.
The first rule is the most important one. For any given trip, you choose either the per diem approach or the company-paid-meals approach. You cannot use both for the same meals.
Under the per diem approach, you claim the flat rate and apply mandatory reductions if any meals were provided along the way. You do not also claim separate meal spending on top.
Under the company-paid approach, the company pays for meals directly by card or receipt reimbursement. You do not also claim the per diem for those same meals.
Mixing the two is the single most common mistake we see on travel claims. The Finanzamt treats it as double-dipping and will disallow one or both claims.
How the right rate is chosen
The BMF table provides two meal rates per location. A full-day rate for days with 24 hours of absence, and a shorter-day rate for arrival and departure days and for any day with more than 8 hours away from the usual workplace.
For multi-country travel, the applicable rate for each day follows BMF rules based on where you were that day. If a country is not listed in the BMF table, the Luxembourg rate applies as the fallback.
The domestic Germany rates, unchanged since 2020, are:
•Full day (24 hours absence): €28
•Arrival, departure, or more than 8 hours: €14
2026 rates for common travel destinations
The BMF updated international rates for 2026, with changes to around 40 countries. Below are the rates for destinations most relevant to RB clients.
Destination
Full day
Arrival, departure, or >8h
Overnight flat rate
USA, New York City
€66
€44
€308
USA, San Francisco
€59
€40
€327
Switzerland, Geneva
€70
€47
€197
Switzerland, Bern
€82
€55
€195
China, Hong Kong
€83
€56
€209
For the full list of over 200 countries and city-specific variations, the is the source of truth. Mandatory reductions when meals are provided
If any meals are provided during a trip, the per diem for that day must be reduced. This applies whether breakfast was included in the hotel rate, lunch was organised by a client, or dinner was covered by a conference.
Reductions are calculated against the full-day rate for that location, even on arrival and departure days.
•Breakfast: 20% of the full-day rate
•Lunch: 40% of the full-day rate
•Dinner: 40% of the full-day rate
On a trip to London, the full-day rate is €66. A day with breakfast included in the hotel rate reduces that to €66 minus €13.20, leaving €52.80 claimable. A day where the client also provided lunch reduces it further by €26.40.
The reductions are mandatory, not discretionary. Skipping them when meals were provided is one of the most common errors we see, and it is the kind of inconsistency that surfaces quickly on a Finanzamt review. For a broader overview of how travel costs interact with other deductible business expenses, see our guide to . Accommodation: flat rate vs actual invoice
The BMF table also publishes overnight flat rates for most destinations. The structure matters here. The overnight flat rate is designed for employer reimbursement cases, not as a general accommodation allowance.
In practice, the director pays the hotel personally and the company reimburses either the actual hotel cost with invoice, or the overnight flat rate where company policy supports it.
For most German operating companies, the actual invoice is the better route. A proper hotel invoice with German VAT allows the company to reclaim input tax. VAT cannot generally be reclaimed from a lump-sum flat-rate payment. For higher-value trips or VAT-sensitive setups, the actual-invoice approach is almost always preferable. This is the kind of structural choice that sits alongside other tax decisions directors make regularly. The covers the broader picture. The 3-month cap most directors miss
The meal per diem only applies for the first 3 months of an extended assignment at the same temporary work location. After that, the per diem stops for that location until the assignment is interrupted for at least 4 consecutive weeks.
For directors who spend regular extended time at a single foreign office, project site, or client location, this rule is easy to overlook and expensive to discover after the fact. As a practical planning point, scheduling a genuine break before hitting the 3-month mark resets the clock and preserves the per diem entitlement for the next period.
What usually goes wrong
Five patterns come up repeatedly in client conversations.
Double-dipping. Claiming per diem on a day where the company also paid for the same meal. The two methods must stay separate.
Skipping mandatory meal reductions. Forgetting to reduce the per diem when breakfast was included in the hotel rate or a client provided lunch. The reduction is not optional.
Choosing the flat rate and losing VAT. The overnight flat rate is administratively easy but forfeits input tax recovery. For higher-value hotel stays, the actual invoice is usually the better call.
Missing the 3-month cap. Usually because it does not feel like an obvious rule mid-project, until the deduction disappears.
Inconsistency across records. If the dates on calendar entries, payroll records, and bookkeeping do not align, a deduction can get queried even when the underlying travel was completely genuine.
Frequently asked questions
Can I claim per diem and have the company pay for my dinner? Not for the same meal. Choose one approach per trip and apply mandatory meal reductions where meals were provided.
Which rate applies on a multi-country day? Generally the rate for where you were that day under the BMF rules. For long-haul itineraries with multiple stops, the location-at-midnight rules are worth checking specifically.
Is a hotel invoice always required? Not always, but for VAT recovery and for higher-value trips, an actual invoice is almost always preferable to a flat-rate claim.
How long before the per diem stops at one location? After 3 months at the same temporary work location. The clock resets only after an interruption of at least 4 weeks.
Does per diem cover airport taxis? Treat airport and station transfers as travel costs, separate from the meal per diem. Local taxis at the destination do not typically form part of the per diem claim unless they are clearly documented business travel.
For context on how other employer benefits are taxed in Germany, see our guide to . The bottom line
The 2026 BMF rates make the per diem regime a meaningful part of any travel-heavy director’s tax position. The rules are workable. The traps are the mandatory meal reductions, the 3-month cap, the choice between per diem and company-paid meals, and the way accommodation is handled depending on VAT position.
Getting this right is a planning question, not just an admin one. The difference between a well-structured travel policy and a rough one shows up every time a travel claim goes in.
If you want to make sure your 2026 travel setup is structured correctly, our team can review your current approach and set up a workflow that works cleanly every time. Your first consultation with Richmond Blackwood is free. to scope your travel cost strategy. Disclaimer
This article is for general informational purposes only and does not constitute tax, legal, or financial advice. Tax outcomes depend on your facts, residency position, entity types, and the jurisdictions involved. Always take advice from qualified professionals before restructuring, signing transaction documents, or completing a disposal.
