The reimbursement of travel expenses is aimed to cover employees' commute costs to reach their place of employment. As every country in Europe covers these costs at different rates, and it is the responsibility of the employer to cover these expenses, we have gathered all the latest information.
Here is the 2023 mileage reimbursement update for Europe.
Latest update: 23 March 2023
Mileage Reimbursement in Austria
The Austrian rate for mileage reimbursement is €0.42 per km for a car. The official mileage allowance can be recognized for a maximum of 30,000 kilometers per calendar year.
Mileage Reimbursement in Belgium
The Belgian rate for an employee is €0.4259 per driven kilometer. The mileage allowance is neither subject to social security contributions nor to payroll tax. The employee is due to pay social security contributions on this amount.
An additional condition is that the number of kilometers per year should not be abnormally high (max. 24.000 kilometers per year). If the number of kilometers is higher, proof must be provided.
Mileage Reimbursement in Croatia
The tax-free reimbursement in Croatia is 2 Croatian Kuna per kilometer. This is equivalent to €0.27.
The basic rate for 1 km compensation for motor vehicles is CZK 4.70 or €0.19.
Mileage Reimbursement in Finland
The tax-exempt kilometer allowance by private car is €0.53 per km.
Mileage Reimbursement in France
The French system is a bit more complex and the reimbursement rate depends on the type of car and the total amount of driven kilometers:
| |
up to 5000km |
from 5001 to 20000km |
above 20000km |
| 3 CV and less |
km x 0,502 |
(km x 0,3) + 1007 |
km x 0,35 |
| 4 CV |
km x 0,575 |
(km x 0,323) + 1262 |
km x 0,387 |
| 5 CV |
km x 0,603 |
(km x 0,339) + 1320 |
km x 0,405 |
| 6 CV |
km x 0,631 |
(km x 0,355) + 1382 |
km x 0,425 |
| 7 CV and more |
km x 0,661 |
(km x 0,374) + 1435 |
km x 0,446 |
Mileage Reimbursement in Germany
A German employer is allowed to reimburse €0.30 per kilometer tax-free for a car. Please note that this is only allowed when confirmed by a particular listing reflecting the date/reason/driven distance and trip route with a private car. For an amount above 20 km, the reimbursement rate increases to €0.38.
Mileage Reimbursement in Hungary
A flat rate of HUF 15 (€0.038) per km or petrol usage reimbursement (upon receipt).
Mileage Reimbursement in Ireland
The Irish system is also using a system where the reimbursement depends on the type of car and the kilometers per year:
| Distance band |
Engine capacity up to 1200cc |
Engine capacity 1201cc – 1500cc |
Engine capacity 1501cc and over |
Up to 1,500 km
(Band 1) |
41.80 cent |
43.40 cent |
51.82 cent |
1,501 – 5,500 km
(Band 2) |
72.64 cent |
79.18 cent |
90.63 cent |
5,501 – 25,000 km
(Band 3) |
31.78 cent |
31.79 cent |
39.22 cent |
| 25,001 km and over (Band 4) |
20.56 cent |
23.85 cent |
25.87 cent |
Mileage Reimbursement in Italy
Italy has many different legal mileage reimbursement rates, depending on the engine category, the car manufacturer, the type of fuel, and engine capacity. If you would like to learn about specific mileage reimbursement rates in Italy, we would be more than happy to assist, so don't hesitate to contact us.
An allowance of €0.21 or less per kilometer is free of tax and social security contributions. If an allowance exceeds €0.21 per kilometer, the Dutch tax authorities will regard the excess as (taxable) wages.
In the UK, mileage reimbursement is considered a benefit for employees, so employers are not obligated to pay. However, many choose to reimburse their employees for business mileage, because anything paid under or at the same level as the approved mileage is not reported to the authority.
The mileage reimbursement per kilometer for a car in the UK is 45 pence for the first 10.000 miles and above 25 pence.
Mileage Reimbursement in Poland
In Poland, the mileage reimbursement depends on the car cc. A car below 900 cm3 is 0.89 Polish Zloty (€0.19) per km and a car above 900 cm3 is 1.15 Polish Zloty (€0.24).
Mileage Reimbursement in Portugal
A Portuguese employer can reimburse up to €0.36 per km.
Mileage Reimbursement in Spain
The tax-free rate is €0.19 per kilometer, and everything on top is taxable.
Mileage Reimbursement in Slovakia
The amount of the basic compensation for using road motor vehicles for business trips is €0.213 per km.
Mileage Reimbursement in Slovenia
Since the 1st of July 2022, the mileage reimbursement for transport on a business trip equals 0.43 euros per kilometer (before that it was 0.37 euros). The transportation that is for commuting: going from and to work equals 0.21 euros per kilometer (before that it was 0.18 euros).
Mileage Reimbursement in Sweden
SEK 25 per 10 km for your car. This is equal to €2.25 per 10 km.
Mileage Reimbursement in Switzerland
Currently, the average Kilometer cost is CHF 0.72 per km for a total mileage per year.
For more information about the mileage reimbursement, don't hesitate to reach out to us. We will be delighted to help you out.
Mileage Reimbursement in Norway
The distance-based allowance is tax-free and not subject to withholding tax and deduction rates when using a private vehicle for work. For cars, including electric cars, it is NOK 3,5 per km and that is equal to €0.31 per km.
Disclaimer: While we strive to provide accurate and timely information, please note that HR policies and regulations can change frequently. It is recommended that you seek guidance from our HR Outsourcing consultants to ensure that the data presented here is current and accurate.
