Greece, a land renowned for its ancient history and stunning landscapes, is also a bustling hub for international business. In 2025 alone, Greece welcomed nearly 38 million international visitors, reflecting a 5.6% increase from the previous year. If your team is part of this influx, travelling from the ancient ruins of Athens to the bustling port of Thessaloniki, they're likely racking up miles that need accurate reimbursement. Miscalculations in mileage reimbursement can lead to financial discrepancies and business compliance issues. In this guide, we cover everything you need to know about mileage allowance to make your reimbursement process as smooth as olive oil.
How does mileage allowance in Greece work?
- Fuel rates: this is the primary expense covered by the allowance
- Wear and tear: the allowance factors in general vehicle depreciation due to business use.
- Maintenance and repairs: includes a portion of routine maintenance costs and potential repairs related to business use
- National insurance: a part of the vehicle insurance cost is considered, as business use may affect insurance premiums
- Vehicle tax: if applicable, a portion of annual vehicle tax or registration fees may be included
- Tyre replacement: the allowance typically factors in tyre wear due to business mileage.
Company cars as benefits in kind
Price range (Retail price before taxes)
Percentage of retail price
Reduction for 3-5 years old
Reduction for 6-9 years old
Reduction for over 10 years old
Up to €14,000
4%
10% reduction
25% reduction
50% reduction
€14,001 to €17,000
20%
10% reduction
25% reduction
50% reduction
€17,001 to €20,000
33%
10% reduction
25% reduction
50% reduction
€20,001 to €25,000
35%
10% reduction
25% reduction
50% reduction
Over €25,000
37%
10% reduction
25% reduction
50% reduction
Luxury Vehicle tax
Engine capacity
Additional percentage of retail price
1,929cc to 2,500cc
5%
Over 2,500cc
13%
Tax Benefits and Subsidies for Electric Vehicles (EVs) in Greece
- Exemption from luxury tax
- Lower CO2-based taxation
- Exemption from vehicle registration fees
- Exclusion of market value from income calculation for certain vehicles
Recipient
Subsidy description
Subsidy amount
Individuals
~30% subsidy for long-term leases of EVs, without buyback obligation
Up to €8,000
Companies
~30% subsidy for 1-20 vehicles
Up to €8,000 per vehicle
Companies
~20% subsidy for 21 vehicles and over
Up to €6,000 per vehicle
Additional subsidies
Disabled persons, families with dependent children and companies based on Greek islands
Variable amounts
Smart charger purchase
€500 subsidy for purchasing a smart charger
€500
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What is not included in the mileage allowance?
- Travel allowance: separate travelling allowance that covers broader travel expenses, such as flights, trains, or other transportation modes
- Public transportation fares: costs for using buses, trams, subways, or other public transport services
- Parking fees or tolls: charges for parking or road tolls, which are usually reimbursed separately
- Per diem: a daily allowance provided to cover meals, lodging and incidental expenses during business travel, so employees are compensated for out-of-pocket costs. The European Commission's per diem rate for Greece (latest available EU rates) is €82 for daily subsistence and €107 for accommodation per night.
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Frequently asked questions about mileage allowance in Greece
- The mileage allowance in Greece is not standardised by the government. This means the approved mileage allowance payments are typically determined by the agreement between the employer and the employee. This contrasts with many other European countries where a flat rate (tax-free) is set by authorities:
- Belgium: €0.4320 per kilometre
- Netherlands: €0.23 per kilometre
- Portugal : €0.40 per kilometre
- Czech Republic : CZK 5.20 (€0.21) per kilometre
- Croatia : €0.55 per kilometre
- Austria: €0.42 per kilometre
- Finland : €0.57 per kilometre
- Spain: €0.19 per kilometre
- Mileage rates in Greece are typically negotiated between employers and the tax treatment of types of cars can indirectly affect reimbursement considerations:
- Company cars: taxed as a benefit in kind, with rates varying based on the car's value and age
- Luxury cars: subject to an additional luxury tax based on engine capacity
- Electric vehicles (EVs): enjoy tax-free benefits, including exemption from luxury tax and vehicle registration fees
- The HMRC (Her Majesty's Revenue and Customs) is the tax authority in the United Kingdom. The equivalent government agency in Greece that deals with tax collection is the Independent Authority for Public Revenue (Ανεξάρτητη Αρχή Δημοσίων Εσόδων), often abbreviated to ΑΑΔΕ ( AADE ) in Greek.
- In Greece, since there is no standardised rate, updates depend on individual company policies and can vary widely. There is no official government mileage rate or fixed update cycle, and reimbursement policies are typically reviewed internally by employers.
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