Employers can reimburse their employees as compensation for the expenses (such as maintenance, restaurants and hotels) incurred while employees are on a business trip. In Luxembourg, the employer can choose to reimburse the employee’s actual expenses (proved by valid receipts) or pay per diems to the employee.

Up to a certain amount, per diems are not considered part of an employee’s pay and are thus tax free. These maximum amounts differ based on the destination of the business trip and will be discussed below.

A per diem includes a day compensation and a night compensation. The day compensation is granted for each day the employee is on a business trip. It is not necessary to keep and submit proof of the expenses for the day’s compensation. For the night compensation, which is covering expenses such as accommodation, breakfast and related taxes, it is necessary to submit proof of the expenses. When receipts are not submitted, the employer can only grant 20% of the full daily allowance tax free.

Domestic business trips

The maximum tax-free amounts for domestic trips are the following:

Day compensation Night compensation
€14 €56

 

The rates applicable in 2022 remained the same for 2023.

Business trips abroad

As mentioned, the maximum tax-free per diem rates depend on the destination of the business trip. You can find the different rates per country that apply for 2023 below at the end of the article.

Additional notes about per diems for business trips abroad:

  • A business trip is considered to be a business trip abroad when the destination is more than 25km from the Luxembourg border.
  • For countries that preside over the Council of the European Union, the maximum amount of the night allowance are increased by 10 % for the duration of the presidency. You can look up the timeline and schedule of presidencies on the website of the Council of the European Union.
    • Czech Republic: 1 July 2022 – 31 December 2022
    • Sweden: 1 January 2023 – 30 June 2023
    • Spain: 1 July 2023 – 31 December 2023

Business trips from abroad to Luxembourg

The maximum tax-free amount for employees normally working abroad and going on a business trip in Luxembourg are the following:

Day compensation (2022) Night compensation (2022) Day compensation (2023) Night compensation (2023)
Luxembourg €60 €180 €60 €200
Kirchberg €60 €200 €60 €220
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You can easily download the per diem list for Luxembourg in Rydoo. Learn more.


Business trips abroad: per diem rates 2023

Day compensation (in €) Night compensation (in €)
Albania 30 70
– Tirana 45 140
Germany 60 195
– Berlin/Munich 60 220
Austria 50 160
– Vienna 60 200
Belgium 50 160
– Brussels 60 250
Bosnia Herzegovina 40 90
– Sarajevo 70 160
Bulgaria 50 180
Canada 60 170
– Ottowa/Montréal/Toronto 60 190
China 60 200
– Peking 80 240
– Hong Kong 80 330
– Shanghai 70 285
Croatia 40 100
– Zagreb/Split 70 190
Cyprus 60 210
Denmark 70 200
– Copenhagen 90 230
United Arab Emirates 80 250
Spain 50 180
– Madrid/Barcelona 60 210
Estonia 35 85
– Talinn 55 175
United States of America 80 170
– New York 100 260
– San Francisco 85 230
– Washington 85 250
Finland 80 230
France 60 170
– Paris 60 250
– Strasbourg 60 230
Greece 50 130
– Athens/Thesaloniki 50 180
Hungary 50 120
– Budapest 60 200
India 60 200
– New Delhi/Mumbai/Calcutta 60 250
Ireland 65 180
– Dublin 70 220
Italy +0 180
– Rome/Venice 70 220
Japan 100 220
– Tokyo 100 260
Kazakhstan 60 180
– Astana 60 250
Latvia 35 110
– Riga 60 180
Lithuania 45 110
– Vilnius 55 195
Monaco 80 250
Norway 80 230
The Netherlands 50 180
– The Hague 60 210
Poland 50 150
– Warsaw 60 185
Portugal 50 120
– Lisbon/Porto 60 170
Czech Republic 40 120
– Prague 60 170
Romania 40 120
– Bucharest 60 200
United Kingdom 70 200
– London 90 280
Russia 40 125
– Moscow 90 250
– St. Petersburg 80 240
Singapore 80 250
Slovakia 35 120
– Bratislava 60 170
Slovenia 40 120
– Ljubljana 60 170
Sweden 80 230
Switzerland 75 220
– Zurich/Geneva 80 240
Thailand 60 150
– Bangkok 70 220
Turkey 40 130
– Ankara/Izmir 50 220
– Istanbul 50 230
Ukraine 50 120
– Kiev 60 220
Rest of the world 70 200

 

Source: Government regulation of 2 December 2022

You can find the rates applicable for 2022 here.

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