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 2023 remained the same for 2024.
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.
- Spain: 1 July 2023 – 31 December 2023
- Belgium: 1 January 2024 – 30 June 2024
- Hungary: 1 July 2024 – 31 December 2024
- Poland: 1 January 2025 – 30 June 2025
- Denmark: 1 July 2025 – 31 December 2025
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 | Night compensation | ||
| Luxembourg | 2024 | €60 | €200 |
| 2023 | €60 | €200 | |
| Kirchberg/City Center | 2024 | €60 | €220 |
| 2023 | €60 | €240 |
You can easily download the per diem list for Luxembourg in Rydoo. Learn more.
Business trips abroad: per diem rates 2024
|
Country or Place of destination |
Day allowance € |
Night allowance € |
|
Albania Tirana |
30 45 |
70 140 |
|
Germany Berlin/Munich |
60 60 |
195 220 |
|
Austria Vienna |
50 60 |
160 200 |
|
Belgium Brussels |
50 60 |
160 250 |
|
Bosnia and Herzegovina Sarajevo |
40 70 |
90 160 |
|
Bulgaria |
50 |
180 |
|
Canada Ottawa/Montreal/Toronto |
60 60 |
180 220 |
|
China Beijing Hong Kong Shanghai |
60 80 80 70 |
200 300 330 300 |
|
Croatia Zagreb/Split |
40 70 |
100 190 |
|
Cyprus |
60 |
210 |
|
Denmark Copenhagen |
70 90 |
200 250 |
|
United Arab Emirates |
80 |
250 |
|
Spain Madrid/Barcelona |
50 60 |
180 220 |
|
Estonia Tallinn |
35 55 |
85 175 |
|
United States of America new York San Francisco/Norfolk Washington |
80 100 85 85 |
200 270 240 260 |
|
Finland |
80 |
230 |
|
France Paris Strasbourg |
60 60 60 |
170 250 240 |
|
Greece Athens/Thessaloniki/ Crete/Corfu |
50 50 |
150 210 |
|
Hungary Budapest |
50 60 |
150 200 |
|
India New Delhi/Mumbai/Calcutta |
60 60 |
200 250 |
|
Ireland Dublin |
65 70 |
180 220 |
|
Iceland |
70 |
260 |
|
Italy Rome/Venice |
60 70 |
180 240 |
|
Japan Tokyo |
100 100 |
220 260 |
|
Kazakhstan Astana |
60 60 |
180 250 |
|
Latvia Riga |
35 60 |
110 180 |
|
Lithuania Vilnius |
45 55 |
110 200 |
|
Luxembourg Kirchberg/City Center |
60 60 |
200 240 |
|
Monaco |
80 |
270 |
|
Norway |
80 |
230 |
|
The Netherlands The Hague/Amsterdam |
50 60 |
180 210 |
|
Poland Warsaw |
50 60 |
160 210 |
|
Portugal Lisbon/Porto |
50 60 |
150 200 |
|
Czech Republic Prague |
40 60 |
120 200 |
|
Romania Bucharest |
40 60 |
150 220 |
|
United Kingdom London |
70 90 |
200 280 |
|
Russia Moscow St. Petersburg |
40 90 80 |
125 250 240 |
|
SAHEL countries* *Senegal, Mauretania, Mali, Burkina Faso, Niger |
60 |
260 |
|
Singapore |
80 |
300 |
|
Slovakia Bratislava |
35 60 |
150 200 |
|
Slovenia Ljubljana |
40 60 |
150 200 |
|
Sweden |
80 |
230 |
|
Swiss Zurich/Geneva/Bern |
75 80 |
220 260 |
|
Thailand Bangkok |
60 70 |
150 230 |
|
Türkiye Ankara/Izmir Istanbul/Antalya |
40 50 50 |
150 230 240 |
|
Ukraine Kyiv |
50 60 |
120 220 |
|
Others |
70 |
200 |
Source: Government regulation of 18 December 2023
You can find the rates applicable for 2023 here.