How high is the daily allowance in Austria?

Why daily allowances are so important for business trips

When you're traveling for work, you incur unavoidable expenses: Meals, snacks, drinks - it all adds up. To fairly compensate for these additional expenses, Austrian tax law provides for so-called daily allowances. Daily allowance before. In this article, you will find out how high the daily allowances will be in Austria in 2025, how they are calculated and which statutory and collective agreement regulations must be observed.

Definition: What is a daily allowance?

A Daily allowance is a tax-free lump sum that employers can pay their employees as part of a Travel expense report to grant the Additional meal expenses during a Business trip to be compensated. It is not an actual reimbursement of costs, but a lump sum - regardless of the actual expenses.

Legal framework in Austria for 2025

New, increased daily allowance rates have been in force in Austria since January 1, 2025. According to the wage tax regulations, a tax-free amount of up to 30 Euro per calendar day is possible. The prerequisite is that the journey takes at least three hours away from the usual place of work.

These legal principles are based on:

• the Income Tax Act (EStG),
• the respective collective agreement

Current daily allowance rates by trip duration - with table

The amount of the daily allowance depends on the duration of the business trip. Here is an overview:

Differences between tax-free and collectively agreed daily allowance

Important to know: The tax-free maximum limits are not automatically the amounts actually paid out. In many sectors - e.g. in the Metal trade - regulates the Collective agreement own daily allowance rates. It may be that the collective agreement provides for a higher daily allowance (e.g. EUR 33), but the excess amount is subject to income tax.

Daily allowance vs. additional meal expenses: What's the difference?

Both terms are often used synonymously, but are technically different:

• The Daily allowance is a lump sum.
• The Additional meal expenses denotes the actual additional expenditure.

In the electronic travel expense report flat rates are usually used because they are easier to administer and legally secure.

Regulations for business trips abroad

Business trips abroad require special attention - not only because of the higher costs, but also because of different tax regulations. Separate daily allowances apply for business trips abroad, which are set depending on the destination country. These amounts are based on the average local cost of living and are usually higher than in Germany.

For example, the daily allowance for Germany is currently EUR 35.30, for Switzerland EUR 36.80 and for the USA EUR 52.30 per full calendar day.

In addition, please note the following when traveling abroad:

• Correctly convert exchange rates for cash payments in foreign currency
• Accurately document cross-border travel times (relevant for the calculation)
• Observe relevant exemption limits for benefits in kind (e.g. hotel meals)

One Electronic travel expense report helps to correctly allocate country-specific per diem rates, convert foreign currencies and fulfill all relevant documentation requirements. The use of professional tools is indispensable, especially for international business trips.

Typical errors in the settlement of daily allowances

• Wrong duration of the trip
• Lack of documentation of departure and arrival times
• Catering services not taken into account
• Confusion between tax-free and taxable portion

Here is a structured Digital expense report particularly helpful.

Practical example: A day in the field - this is how billing works

A technician drives from the company headquarters in Graz to a customer in Klagenfurt at 07:30. Return: 18:00 hrs. Duration: 10.5 hours.

• Travel time: 10.5 hours → 11/12 of the daily allowance = 27,50 Euro
• In addition: Mileage allowance when using a private car (e.g. €0.50/km)
• If lunch is provided by the customer: Deduction of 15 Euro

Final amount: 12.50 euros tax-free + mileage allowance

Why a digital travel expense report creates clarity

Modernity Business travel software or a Travel expenses app makes it possible to record all relevant data directly on the move. It prevents errors, saves time and automatically takes legal and collective agreement requirements into account.

Frequently asked questions (FAQ)

How high will the tax-free daily allowance be in Austria in 2025?

The tax-free daily allowance is 30 euros per calendar day. Pro rata amounts apply for shorter business trips - starting from three hours of absence.

What happens when meals are provided?

If a meal (e.g. a business meal) is provided free of charge during the business trip, the daily allowance must be reduced by EUR 15 per meal. If two meals are provided, the daily allowance is waived completely.

Does the collective agreement or the tax threshold apply?

The tax limit merely determines the amount that may be paid out tax-free. If the collective agreement provides for a higher daily allowance rate (e.g. EUR 33), the portion above this is taxable.

Which tools help with the billing of daily allowances?

Digital tools such as Travel expense software, Expense apps or cloud-based Business travel management systems support the fast, correct and legally compliant recording and settlement of daily allowances - both in Switzerland and for business trips abroad.

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