Mileage Reimbursement in Europe

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.

Mileage Reimbursement in the Czech Republic

The basic rate for 1 km compensation for the 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 is depending 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 a receipt).  

Mileage Reimbursement in Ireland

The Irish system is also using a system where the reimbursement is depending 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, 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. 

Mileage Reimbursement in the Netherlands 

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. 

Mileage Reimbursement in the United Kingdom 

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 of 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 the 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 (prior to that it was 0.37 euros). The transportation that is for commuting: going from and to work equals 0.21 euros per kilometer (prior to that it was 0.18 euros).

Mileage Reimbursement in Sweden

SEK 25 per 10 km for your own car. This is equal to €2.25 per 10 km.

Mileage Reimbursement in Switzerland

CHF 0.75 (€0.75) 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. 
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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 consultants to ensure that the data presented here is current and accurate.

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