How much do the mileage allowances and per diems increase for different countries in 2024?
We put together an information package for eight countries regarding tax-free travel expenses for 2024.
All countries have their practices regarding daily and mileage allowances for business-related trips, at least more or less. In Europe, most countries cover traveling expenses through tax-free mileage allowance and per diem, i.e. daily allowances. But like in Finland, it is up to the company to determine how much they pay.
The common denominator between other countries and Finland is that they usually make yearly checks on the amount they pay per mileage and diem.
But what are the things that impact how much other countries pay? And are the allowances bigger or smaller when comparing 2024 to 2023?
These are some of the questions we will answer in this blog post.
The countries we have decided to involve in this comparison are Sweden, Denmark, Norway, Estonia, Germany, Spain, Portugal, and the United States of America.
In Sweden, the mileage allowance in 2023 was 2,5 Swedish crowns. With the current exchange rate, it equals 0,22 euros.
The partial per diem was 130 Swedish crowns (11,55 euros), and the per diem was 260 Swedish crowns (23,09 euros).
In 2024, the mileage allowance is the same as the previous year, but the per diem is different.
In 2024, the per diem, i.e. daily allowance is either 145 or 290 Swedish crowns. In euros, those sums are 12,88 and 25,75 euros. That means the partial daily allowance increased by 1,33 euros and the per diem by 2,66 euros.
The numbers above mean that the percentual increase was 11,52 percent in each category.
In Sweden, the allowances are tax-free. That is when the paid allowances stay under the maximum amounts.
But what are the things that impact the rate of the allowances each year? Prevailing price trends.
What it means in practice is that if the cost of living is higher than in the previous year, the same happens with allowances. And because the cost of living in Sweden is higher in 2024 than in 2023, they decided to increase the allowances.
Before 2023, the mileage allowance stayed the same for 15 years, meaning there were no changes between 2008 and 2022 – even though the gas prices and other car-related expenses increased during that span.
Read more about Travel expenses in Sweden
In 2024, the Danes will enjoy higher compensation for mileages and per diem than in the previous year.
In 2023, the mileage allowance in Denmark was 3,73 Danish crowns (0,50 euros). But in 2024, there was an increase to 3,79 Danish crowns (0,51 euros). Yes, the change is merely margin, but at least it’s moving in the right direction from the consumer’s and entrepreneur’s point of view.
In Denmark, the maximum amount of the daily allowance can vary. And the impacting factor? Whether it is an overnight trip or not. The Danish government can pay 575 Danish crowns for food and other living expenses, plus an extra 246 crowns for accommodation.
Compared to 2023, the maximum amount for food and other expenses increased from 74,41 euros to 76,96 euros. And for accommodation? It increased from 31,91 euros to 32,98 euros for 2024.
In Denmark, they expect the gas and maintenance expenses to be higher in 2024. Thus, the increase in both the mileages and the daily allowances.
Read more about Travel expenses in Denmark
In Norway, the mileage allowance continued its climb for the second year in a row. The increase wasn’t dramatic, but the allowance is higher than in 2023.
In 2024, the mileage allowance in Norway is 4,90 Norwegian crowns (0,43 euros). Last year the equivalent number was 0,40 euros. And when taking into consideration that the mileage was 0,31 euros in 2022, the increase has been quite significant during these past two years.
And most likely, the mileage will continue its growth. Why? Because the officials in Norway still see it as too little in relation to the actual expenses you pay to use your car.
The expectation of a continuing increase in mileage allowance is understandable, as the gas prices in Norway are extremely high.
Also, the per diem are now higher than in the previous year. But how much higher? Well, the increase was the biggest since 2012.
In 2024, the per diem is 940 Norwegian crowns, and the partial per diem is 686 Norwegian crowns. And when changed into euros, the numbers are 83,39 euros and 60,86 euros.
In 2023, the maximum daily allowance was 77,36 euros, and the partial one was 56,51 euros.
The amount of the daily allowances might vary each year based on the cost-of-living index.
Even though there was a notable increase in the daily allowances, they didn’t keep up with the cost-of-living index. The cost-of-living index increased by 9,1 percent, while the growth for the daily allowance was 7,80 percent and for the partial daily allowance 7,70 percent.
Read more about Travel expenses in Norway
If you travel with your car in Estonia for work-related matters, the mileage allowance and per diem are the same in 2024 as in 2023.
In Estonia, the mileage in 2024 is 0,30 euros, and the per diem varies between 22,37 and 50 euros. The maximum per diem is allowed only for the first 15 traveling days. After that, the maximum amount is 32 euros per day.
In practice, they hardly ever pay the maximum 50 euros in Estonia. Instead, the compensation is 32 euros in most of the cases, starting from Day 1.
Unlike Finland and other Nordic countries, Estonia doesn’t have a partial per diem.
Read more about Travel expenses in Estonia
For years, the mileage allowance in Germany for work-related travel has been 0,30 euros. And it is the same in 2024.
While there were no changes in the mileage allowance, the per diem (daily allowance) increased, especially in percentage terms.
In 2023, the per diem was 28 euros. Now, in 2024, it is 32 euros. Therefore, the percentual increase was 14,29 percent.
In Germany, they also pay the partial daily allowance, which is precisely half of the daily allowance; in 2023, it was 14 euros.
In 2022 and 2023, the daily and partial allowances didn’t change in any direction.
Read more about Travel expenses in Germany
Spain has a similar system to Finland, as Spain also pays full and partial per diem.
But what kind of amounts are we talking about?
The daily allowance in Spain for 2024 is 53,34 euros. The partial daily allowance is 26,67 euros. When compared to 2023, the numbers are the same.
But when it comes to the kilometre allowance, there is a change, as there should be. In 2023, the mileage allowance in Spain was only 0,19 euros – now it is 0,26 euros.
At the same time, the mileage allowance is still low. For example, the gas prices in Spain are almost the same as in Finland. But at least there was a 35 percent increase, and it was the first time since 2005 that the Spanish government decided to adjust it.
Spain reasoned the increase with mounting inflation, higher living expenses, and gasoline prices.
Read more about Travel expenses in Spain
When you compare Portugal to, for example, the neighboring country Spain, the mileage allowance is significantly higher in Portugal.
In 2024, the maximum mileage allowance in Portugal is 0,40 euros, which is 0,14 euros higher than in Spain. There is also a noteworthy difference in the per diem between these two countries, as the maximum per diem in Portugal is 62,75 euros.
The increase from 2023 to 2024 was also notable, as last year’s mileage allowance was 0,36 euros, and the per diem was 50,20 euros.
In practice, the maximum per diem only comes into question in cases where a person travels for more than one day, specifically on consecutive days. In other cases, they use the partial per diem in Portugal, but there is no specific amount.
Portugal is different from other countries in this comparison in one interesting way.
In Portugal, the law states that the changes in the cost of living and traveling expenses impact how high or low the daily and mileage allowances are.
Read more about Travel expenses in Portugal
As the United States of America is the only non-European country in this comparison, the system regarding the per diems is different. The reason is that, in the USA, there are many states and counties. And these states and counties have the authority to determine things like this by themselves.
Also, in the USA, paying the per diem isn’t mandated by the law.
Mainly, the US companies reimburse travel expenses against receipts, even if the states and counties allow per diem payments.
In other words, the states and counties can set up their standards. Ultimately, the companies determine how they cover the expenses and how high or low the possible per diems are.
Luckily, the mileage allowance is far more simple and European.
In 2024, the mileage allowance in the USA is 0,67 USD per mile.
Let’s change the number above to a European format.
One mile equals 1,609 mileage. 0,67 USD is 0,61 euros, based on the current exchange ratio.
In 2023, the mileage allowance was 0,625 USD.
The mileage allowance gets calculated every year, and the following things impact it:
Traveling expenses, inflation meters, and the amount US citizens use on average for cars
The average gas prices from the previous calendar year
The car insurance trends and price data
Maintenance and tire expenses
Thorough analysis’ regarding the costs of owning a car
If you are self-employed, you can also base the mileage allowance on actual costs. In other words, if the set mileage allowance is less than the actual costs, an entrepreneur can opt for the actual cost-based reimbursement. But again, remember to take care of your receipts!
Read more about Travel expenses in United States
Bezala streamlines the travel expense management for international groups
Bezala is a multifunctional tool – no matter if your company is based in one or multiple countries.
But why is it such a great tool?
It's flexible, secure and fast. Bezala is the easiest way to handle travel expenses. The software can be integrated to local accounting softwares or company ERP.
You can apply for the per diem through Bezala in Sweden, Denmark, Norway, Germany, Spain, Portugal, and Estonia. In addition, the mileage allowance calculator works for any country.
In the US, handling receipts and travel expenses bills is easy with Bezala’s travel invoicing application. The traveling costs are paid in exchange for receipts, as is customary in the country.
And that’s not all.
You can also apply the per diem in Poland and Lithuania in 2024 through Bezala.
We pay close attention to the reimbursement practices of different countries. When the year changes, we automatically update the reimbursement values of each country for our customers who use the country’s tax-free maximum amounts. In addition to automating per diem and mileage calculations with Bezala, you can save yourself from the annual clearance work.