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.
| 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.
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.
| 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.
|
Distance band |
Engine capacity up to 1200cc |
Engine capacity 1201cc – 1500cc |
Engine capacity 1501cc and over |
|
Up to 1,500 km |
41.80 cent |
43.40 cent |
51.82 cent |
|
1,501 – 5,500 km |
72.64 cent |
79.18 cent |
90.63 cent |
|
5,501 – 25,000 km |
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.
Note: payments at or below these rates are not reported to tax authorities. Additionally, reimbursement is voluntary; not legally required.
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.
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.