Per diem in Portugal
Employers in Portugal can grant a daily allowance as compensation for the expenses of meals and lodging when on a business trip. These daily allowances are called per diem. Per diem are not considered part of an employee’s pay and are thus tax-free up to a certain allowed amount. The employer can grant per diem higher than the rates below. However, the amount exceeding the rates is then considered part of the employee’s taxable income. The maximum amounts differ whether it is a business trip within Portugal or abroad.
The maximum tax-free amounts are defined by Decree-Law No. 106/98 of 24 April, Ordinance No. 1553-D/2008 of 31 December and Decree-Law No. 137/2010 of 28 December.
| Domestic or abroad | User | Rate |
|---|---|---|
| Domestic business trip | Directors/board members | €69,19/day |
| Others | €50,20/day | |
| Business trip abroad | Directors/board members | €100,24/day |
| Others | €89,35/day |