Updated: April 2026
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?
A mileage allowance is a reimbursement for employees who use their private car for business trips. While many countries have a standard rate set by tax authorities (like the IRS rate in the US), Greece does not have such a standardised system.
In Greece, there is no mileage reimbursement rate set by the government for employees using their private cars for business purposes. Instead, the reimbursement rate is typically determined by the agreement between the employer and the employee.
This means that the specifics of mileage allowance, including the rate per kilometre and the conditions under which it is paid, can vary widely depending on the employer's policies and the employment contract terms.
Here's what is usually included in a mileage allowance relief:
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.
Some companies might cover these aspects, while others might focus solely on fuel rates.
So what’s taxable? Mileage allowances are generally not subject to social security contributions or payroll tax if they are considered reasonable and properly documented. However, if the reimbursement exceeds what is considered reasonable, the excess amount could be considered towards income tax.
Tax treatment guidelines for car and car-related benefits
In Greece, the tax treatment for cars, whether their own vehicle (owned by the employee) or company cars, includes guidelines for types of cars, such as electric and luxury cars. These rules were updated by a law passed in the tax year 2016.
Company cars as benefits in kind
The use of a company car is considered a benefit in kind and is taxable. The taxable value is calculated as a percentage of the retail price of the car before taxes. The percentages vary based on the car's price range and age:
Exemptions: Vehicles provided to employees requiring frequent travel (e.g., sales representatives, technicians) are excluded from this calculation if they are used primarily for business purposes.
Luxury Vehicle tax
A luxury tax is imposed on private cars with large engine capacities. The tax rates are as follows:
Tax Benefits and Subsidies for Electric Vehicles (EVs) in Greece
Electric vehicles (EVs) are exempt from vehicle registration fees, lower CO2-based taxation and higher VAT refunds. EVs are also generally exempt from the luxury tax.
Here are some tax-free benefits of EVs:
Exemption from luxury tax
Lower CO2-based taxation
Exemption from vehicle registration fees
Exclusion of market value from income calculation for certain vehicles
Subsidies for EVs under the "Kinoume Ilektrika 2" Program:
The "Kinoume Ilektrika 2" (I Move Electrically 2) programme does indeed provide financial incentives for EVs. Here are some recent details:
What is not included in the mileage allowance?
The mileage allowance specifically covers the costs associated with using a personal vehicle for business purposes. It does not include:
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.
Manage business travel smarter with Perk
Managing business travel is a constant juggle for HR and travel managers—ensuring policy compliance, chasing approvals and tracking expenses across multiple trips. Perk helps you save time and resources.
With Perk, you gain access to an extensive travel inventory with tens of thousands of negotiated rates across airlines, hotels and more—all in one platform. Send your employees anywhere they need to go, confident that you're getting the best value and service along the way.
Plus, Perk integrates with popular expense management tools like Expensify and Pleo. This eliminates time-consuming manual data entry for everyone—especially when it comes to tracking mileage! Empower your team to explore new horizons with confidence and peace of mind.
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See how to save your company time and money on business travel management.
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.
Written by
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Growth Marketing Director
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