January 2025 welcomed in significant updates to per diem rates and legislative frameworks across Germany, Austria, and Luxembourg. The effects of climate change have led governments to create stricter rules for environmental, social, and governance (ESG) reporting. This is to meet EU-wide climate goals.
In 2025, companies are being forced to track and disclose their sustainability efforts more rigorously. Here are some trends we will see:
1. Digitalisation of compliance: Across the EU, there’s a push for fully digital submissions for tax, payroll, and expense reporting. This reduces paperwork and streamlines administrative processes. Read more about e-invoicing here.
2. Carbon emission tracking: Businesses, especially those in travel-heavy sectors, must now adhere to detailed carbon footprint reporting guidelines. This reflects a commitment to reducing environmental impact. Read more about how to go paperless here.
3. Cross-border tax harmonisation: For companies employing cross-border workers, new simplified rules reduce administrative burdens and ensure fair tax treatment for employees.
4. Sector-specific benefits: Tailored allowances, such as higher per diem rates, are being introduced for specific industries, acknowledging their unique needs and contributions to the economy.
Looking back at 2024 in Germany:
Germany's economy experienced minimal growth, with a forecasted increase of only 0.1% for 2024, positioning it as one of the laggards among G20 nations. This stagnation was due to high energy costs, geopolitical uncertainties, and weak business prospects.
Key sectors, including automotive, chemical, and engineering, faced downturns. Industrial production declined by 16% since its 2017 peak, and corporate investments decreased in over half of the past 20 quarters. Challenges such as high energy costs, labor shortages, and increased global competition were significant contributors.
There was a notable increase in foreign takeovers of German companies, with international firms investing $47.2 billion in 2024. This trend raised concerns about the long-term health and competitiveness of German industries.
Benefit in kind, Effective 01.01.2025
|
Category |
Rate (€) |
|
Breakfast |
2.30 |
|
Lunch |
4.40 |
|
Dinner |
4.40 |
- Foreign rates: View full details here.
Looking back at 2024 in Austria:
Austria's reliance on Russian gas became a focal point, especially with the EU's commitment to phase out such imports by 2027. The upcoming general election brought energy policies and economic strategies to the forefront, highlighting the need for diversification and economic revitalisation.
1. Austria standard 01.01.2025
|
Per Diem |
30 EUR |
|
Lodging |
17 EUR |
|
Hourly |
2.50 EUR |
2. Austria metal 01.11.2024
Domestic rates:
|
Per Diem |
70,92 EUR |
|
Lodging |
42,06 EUR |
Foreign rates:
View full details here.
3. Austria Craft 01.01.20254. Austria foundry 01.11.2024
|
Per Diem |
70,92 EUR |
|
Lodging |
42,06 EUR |
View details here.
| Car | €0,50 |
| Passenger Car | €0,15 |
| Motorbikes and motorbikes | €0,50 |
| Cycle | €0,50 |
View details here.
2. Austria handel 01.01.2025
| Up to 10 000 km | €0,50 |
| 10.001 - 20.000 | €0,40 |
| Above | €0,30 |
View details here.
3. Austria metal 01.01.2025
|
Up to 10 000 km |
€0,42 |
|
10.001-15.000 km |
€0,408 |
|
15.001-20.000 km |
€0,395 |
|
Above |
€0,375 |
4. Austria craft 01.01.2025
|
Up to 15 000 km |
€0,50 |
|
15.001-20.000 km |
€0,40 |
|
Above |
€0,40 |
View details here.
5. Austria foundry 01.01.2025
| Up to 15 000 km | €0,50 |
| Above | €0,40 |
Looking back at 2024 in Luxembourg:
Luxembourg's industrial sector experienced a downturn, with a 5.9% decrease in output. Despite this, the impact on employment was relatively contained, with a slight increase of 0.6% in industrial employment during the first three quarters of 2023. Learn more about Luxembourg’s industrial trends.
Luxembourg updated 01.01.2025
View foreign rates here.
The updates in per diem rates and legislative trends for 2025 underline the importance of staying ahead in managing business expenses. With a growing focus on sustainability, digital compliance, and cross-border harmonisation, companies need to adapt quickly to remain competitive and compliant.
To learn more about specific rates and how these changes might impact your business, visit the linked resources or consult your compliance advisor.