In Austria, employers can reimburse employees for business travel expenses such as meals through daily allowances and overnight allowances. These reimbursements may be tax-free, provided they follow certain conditions and limits.
The rules around per diems and travel expense reimbursements are usually defined in collective agreements, or employment contracts. These documents typically define what counts as a business trip, how much can be reimbursed, and how the amounts are calculated.
💡 Note: Always refer to your company’s applicable agreement or contract. That’s the reference point for how business travel is handled. Contact your payroll provider for more information for your company.
If no agreement is in place, the actual costs incurred during the business trip may be reimbursed, but must be proven with receipts.
How are per diem calculated?
Per diem rates are typically calculated using one of several common methods:
- 12ths, 4ths, 3rds,…
- Calendar day-based or 24-hour-based calculation
The method used depends on the applicable agreement or internal company rules.
To illustrate how this might look, below are examples of standard per diem rates. These are often used as benchmarks or references in contracts or collective agreements but may not reflect the exact rates your company uses.
Standard rates
Domestic business trip
A daily meal allowance of €30 is available for 24 hours during a business trip. For trips greater than 3 hours, per diems of € 2,50 can be claimed for each commenced hour (“one-twelfth rule” as per the Austrian Income Tax Act).
| Duration | Fraction of the daily rate | Amount (2025) | Amount (2024) |
| ≤ 3 hours | 0 / 12 | €0 | €0 |
| 3 to 4 hours | 4 / 12 | €10 | €8,80 |
| 4 to 5 hours | 5 / 12 | €12,50 | €11 |
| 5 to 6 hours | 6 / 12 | €15 | €13,20 |
| 6 to 7 hours | 7 / 12 | €17,50 | €15,40 |
| 7 to 8 hours | 8 / 12 | €20 | €17,60 |
| 8 to 9 hours | 9 / 12 | €22,50 | €19,80 |
| 9 to 10 hours | 10 / 12 | €25 | €22 |
| 10 to 11 hours | 11 / 12 | €27,50 | €24,20 |
| > 11 hours | 12 / 12 | €30 | €26,40 |
If a meal is provided, the tax-free allowance needs to be deducted by 50%, and if two meals are provided, the allowance is deducted by 100%.
For overnight stays in Austria, reimbursements of actual costs of accommodation and breakfast are tax-free with proof of expense. If no receipts are shown, employers can pay tax-exempt overnight allowances of €17 (until 2024: €15) per night. The flat rate overnight accommodation allowance can generally only be paid out tax-free for a maximum period of six months.
International business trip
The maximum rates for daily and overnight allowances for business trips abroad are listed in Rz 1405 of the BMF wage tax guidelines and differ depending on the country in which the business trip takes place.
| Duration | Fraction of the daily rate |
|---|---|
| Up to 3 hours | 0/12 |
| 3 to 4 hours | 4/12 of the foreign rate |
| 4 to 5 hours | 5/12 of the foreign rate |
| 5 to 6 hours | 6/12 of the foreign rate |
| 6 to 7 hours | 7/12 of the foreign rate |
| 7 to 8 hours | 8/12 of the foreign rate |
| 8 to 9 hours | 9/12 of the foreign rate |
| 9 to 10 hours | 10/12 of the foreign rate |
| 10 to 11 hours | 11/12 of the foreign rate |
| > 11 hours | 12/12 of the foreign rate |
If one meal is provided per day, the daily allowance will not be reduced. If two meals are paid for, 2/3rd of the daily allowance will be deducted.
Multiple regions
If a business trip spans multiple regions (e.g., Austria + abroad), the international rate typically takes precedence. However, the total per diem for a single calendar day or 24-hour cycle cannot exceed the full daily allowance (12/12ths, 4/4ths, 3/3rds,…).
Deductions or prorating may be necessary when splitting time between domestic and foreign travel locations or multiple foreign travel locations.
Illustrative example
Imagine an employee travels from Vienna to Frankfurt for a two-day meeting:
- Day 1: Leaves Vienna at 3:00 AM, crosses border at 6:30 PM
- Day 2: Re-enters Austria at 5:00 PM, returns home by 8:10 PM
Using the calendar day method and if Frankfurt’s daily allowance is €35,3, the employee would receive:
-
Day 1: €27,65
- Domestic portion: 4/12 of €30 = €10
- International portion: 6/12 of €35,3 = €17,65
- Day 2: 12/12 of €35,3 = €35,3
No additional domestic allowance is granted for the short Austrian portion of day 2, as the full daily limit is already reached via the foreign rate.
Note: A total of 12/12 is the maximum per day, whether calculated via calendar days or a 24-hour cycle. When multiple regions are visited, allocations may need to be adjusted.
Due to the complexity of Austrian per diem rules and the associated wage tax requirements, we recommend:
- Reviewing your applicable collective agreement or employment contract
- Exporting trip details for accurate calculation
- Confirming tax treatment with your payroll provider or tax advisor