What are the Latest European Mileage Reimbursement Rates?

    Created at: 21 March 2023 - Last updated: 23 June 2026

    mileage-reimbursement-rates-europe-2025
    Mileage reimbursement rates across Europe vary significantly in 2026, ranging from €0.21/km to €0.81/km depending on country and tax rules. Employers must understand local regulations to remain compliant. This guide provides a clear country-by-country overview to support HR and finance decisions.

    Depending on the local employer laws employees may receive a flat rate or tiered rate based on mode of transportation and milaege. Another difference between countries is that in some, reimbursements are tax-free, while in other countries they become taxable after exceeding a threshold. Adhering to local regulations is a must to avoid compliance risks.

    Latest European Mileage Reimbursement Per Kilometer

    Austria €0.50
    Belgium ~€0.43–€0.44
    Croatia ~€0.39–€0.50
    Czech Republic ~€0.22–€0.24
    Finland €0.55
    France Variable
    Germany €0.30
    Hungary ~€0.44
    Ireland €0.41–€0.90
    Italy Variable
    The Netherlands  €0.25
    The United Kingdom ~€0.29–€0.52
    Poland €0.21–€0.27
    Portugal €0.40
    Spain €0.26
    Slovakia ~€0.30
    Slovenia €0.43
    Sweden ~€0.23
    Switzerland ~€0.81 
    Norway €0.31

    Table 1. The average car mileage reimbursement rates (Euros € / km) in 20 European countries.

    How Do Mileage Reimbursement Systems Differ Across Europe?

    Depending on the country employers will face one of three systems: Flat-rate systems, tiered systems, or hybrid systems.

    Flat-Rate systems are easy to administer, predictable, and often linked to tax-free thresholds. Some countries that have this system are Germany, Netherlands, and Spain.

    France and Ireland are examples of countries that use the tiered system. This means the reimbursement fees are calculated based on multiple variables like engine size, distance traveled, and annual mileage bands.

    The hybrid system is a mix of a base-rate and additional reimbursements. Variables that affect the amount are fuel costs, receipts, etc.


    Austria Mileage Reimbursement Rate - €0.50

    • Type: Flat rate
    • What it covers: Fuel, maintenance, depreciation, insurance
    • Conditions:
      • Applies to business travel with a private car
      • Usually capped annually (e.g. around 30,000 km in practice)

     

    Belgium Mileage Reimbursement Rate - ~€0.43–€0.44

    • Type: Indexed flat rate (quarterly or annual)
      varies depending on year and fuel adjustment
    • Conditions:
      • Tax-free up to the official ceiling
      • Above that: taxed as salary

     

     

    Croatia Mileage Reimbursement Rate - ~€0.39–€0.50

    • Type: Flat rate (converted from local currency)
    • Coverage: General vehicle use costs
    • Notes: Rate can fluctuate depending on exchange rate and updates

     

     

    Czech Republic Mileage Reimbursement Rate - ~€0.22–€0.24

    • Type: Hybrid system
    • Structure:
      • Fixed base rate (~€0.22/km)
      • + separate fuel reimbursement (based on receipts or official prices)
    • Notes: One of the few countries splitting fixed and variable costs

     

    Finland Mileage Reimbursement Rate - €0.55

    • Type: Flat rate (annual updates)
    • Coverage:
      • Fuel, wear & tear, insurance
      • Extra supplements for passengers or trailers
    • Notes: One of the highest reimbursement rates in Europe

     

    France Mileage Reimbursement Rate - Variable (Based on Formula)

    • Type: Formula (not a flat rate)
      Depends on:
      • Vehicle power (fiscal horsepower)
      • Total annual km driven
    • Notes:
      • Includes depreciation, fuel, maintenance
      • +20% bonus for electric cars

     

    Engine Type Up to 5000km From 5001 to 20000km Above 20000km
    3 CV and less km x 0,529 (km x 0,316) + 1065 km x 0,370
    4 CV km x 0,606 (km x 0,340) + 1330 km x 0,407
    5 CV km x 0,636 (km x 0,357) + 1395 km x 0,427
    6 CV km x 0,665 (km x 0,374) + 1457 km x 0,447
    7 CV and more km x 0,697 (km x 0,394) + 1515 km x 0,470

    Table 2. Breakdown of employer milage reimbursement formula in France.

     

    Germany Mileage Reimbursement Rate - €0.30

    • Type: Flat rate
    • Details:
      • €0.30/km standard
      • Sometimes €0.38/km beyond distance thresholds (context-dependent) 
    • Conditions:
      • Strict documentation required

     

    Hungary Mileage Reimbursement Rate - ~€0.43–€0.44

    • Type: Two-part system
    • Structure:
      • Fixed base (~€0.04/km)
      • Fuel reimbursement based on consumption & price 
    • Notes: One of the lowest base rates in Europe

     

     

    Ireland Mileage Reimbursement Rate - €0.41–€0.90

    • Type: Tiered (complex)
    • Depends on:
      • Engine size
      • Annual km driven
    • Notes:
      • Larger engines: higher rates
      • High maximum reflects real cost reimbursement

     

    Distance band

    Engine capacity up to 1200cc

    Engine capacity 1201cc – 1500cc

    Engine capacity 1501cc and over

    Up to 1,500 km
    (Band 1)

    41.80 cent

    43.40 cent

    51.82 cent

    1,501 – 5,500 km
    (Band 2)

    72.64 cent

    79.18 cent

    90.63 cent

    5,501 – 25,000 km
    (Band 3)

    31.78 cent

    31.79 cent

    39.22 cent

    25,001 km+       (Band 4)

    20.56 cent

    23.85 cent

    25.87 cent

    Table 3. Breakdown of different mileage reimbursement calculations based on the number of kilometers travelled.

     

    Italy Mileage Reimbursement Rate - ~€0.45

    • Type: Highly detailed tables (ACI)
    • Depends on:
      • Car brand
      • Engine size
      • Fuel type
    • Notes:
      • Hundreds of possible rates 
    • Very tailored but complex in practice

     

     

    The Netherlands Mileage Reimbursement Rate - €0.25

    • Type: Flat tax-free ceiling
    • Details:
        • €0.23/km official tax-free in 2026
    • Conditions:
      • Anything above: taxable
    • Notes: Employer decides actual reimbursement


    The United Kingdom Mileage Reimbursement Rate - ~€0.29–€0.52 

    • Type: Tiered (HMRC AMAP)
    • Structure:
      • ~£0.45/mile (≈€0.53/km) up to 10,000 miles
      • ~£0.25/mile (≈€0.29/km) above
    • Notes: Clear tiered model based on distance thresholds

     

    Note: payments at or below these rates are not reported to tax authorities. Additionally, reimbursement is voluntary; not legally required.

     

    Poland Mileage Reimbursement Rate - €0.21–€0.27

    • Type: Engine-based
    • Depends on:
      • Engine capacity (cc)
    • Car rate:
      • reimbursement for engine <900 cm³ is PLN 0.89/km (~€0.21)
      • reimbursement for engine ≥900 cm³ is PLN 1.15/km (~€0.27)


    Portugal Mileage Reimbursement Rate - €0.40

    • Type: Flat rate
    • Notes: Standardised reimbursement aligned with public sector rules

     

    Spain Mileage Reimbursement Rate - €0.26

    • Type: Flat tax-free allowance
    • Coverage: Fuel and vehicle costs

     

    Slovakia Mileage Reimbursement Rate - ~€0.30

    • Type: Flat (often combined with fuel reimbursement in practice)
    • Notes: Similar logic to Czech/Hungarian hybrid models in some cases

     

    Slovenia Mileage Reimbursement Rate - €0.43

    • Type: Flat rate
    • Notes: Comparable to Belgium/Portugal level

     

    Sweden Mileage Reimbursement Rate - ~€0.23

    • Type: Flat rate
    • Notes: Lower due to tax structure and separate benefits

     

    Switzerland Mileage Reimbursement Rate - ~€0.81 

    • Type: Flat (CHF-based)
    • Notes:
      • Very high due to cost of living
      • Converted rates fluctuate with exchange rate


    Norway Mileage Reimbursement Rate - €0.31

    • Type: Flat (converted from NOK)
    • Notes: Indexed to fuel prices and inflation
    • Varies depending on year and fuel adjustment

     

     

    What do different Mileage Reimbursement Rates mean for employers?

    Mileage reimbursement is just one example of how employment regulations differ across Europe. It's important for HR to be attentive to these variations between countries to ensure compliance.

    Understanding and budgeting reimbursements is crucial as they directly effect payroll compliance, cost management, and employee retention.

    You can learn more about how we support companies with HR across Europe through our HR Outsourcing services, or reach out to us through our contact form if you’d like tailored guidance.


    Key Takeaways

    • Mileage rates vary widely across Europe (€0.21–€0.81 per km).
    • Some countries use flat rates, others use tiered or hybrid models.
    • Tax rules differ significantly (tax-free vs taxable above thresholds).
    • France and Ireland use complex band-based calculations.
    • Employers must align policies with local compliance requirements.


    Sources:

    Written by Mervin Jansman, HR Outsourcing Business Development Manager at EuroDev.


    Disclaimer: While we strive to provide accurate and timely information, please note that HR policies and regulations can change frequently. It is recommended that you seek guidance from our consultants to ensure that the data presented here is current and accurate.

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