Updated: April 2026
Reimbursing employees for business expenses can take many forms: from a travel allowance, a travel reimbursement, or per diem rates. However, per diem rates are one of the easiest and most straightforward options.
Understanding per diem rates can also help you ensure that you stay tax-compliant and cover all of your employee’s travel expenses (not just the major ones).
If you have employees in Finland, here’s how to calculate and use per diem rates for their business travel.
What are per diem rates?
“Per diem” means “per day,” so per diem rates are a daily allowance that employees ought to receive when they travel for work. In Finland, per diem rates are set by the Finnish Tax Administration and are tax-free.
In addition, per diem allowances do not require employees to substantiate every expense with receipts or invoices. This reduces administrative work, while also making it easier to budget for business travel expenses.
Are business travel expenses ballooning?
Get expert advice on how to create and set a business travel budget for employees that keeps costs under control → The complete guide to business travel budgetsHow are per diem rates calculated in Finland?
In Finland, per diem rates are calculated based on the duration and destination of the trip.
However, per diem rates do not vary based on where the employee is travelling within Finland, only for international destinations.
What’s covered by per diem rates in Finland
Finnish per diems are meant to cover meal expenses and living expenses incurred by the employee during business travel.
Per diems only apply when the employee is required to travel more than 15km away from their regular workplace, or their home. In addition, the workplace travelled to for business purposes must be more than 5 kms away from both the employee’s home and their regular workplace.
What’s not covered by per diem rates in Finland
Per diems in Finland do not cover:
travel expenses (such as airfare or train fares)
accommodation expenses
night travel
allowances for driving a personal vehicle for work
All of these are reimbursed separately under Finnish law.
For travel expenses and accommodation expenses, employees should be reimbursed directly for the exact expense as provided on an invoice or receipt. For driving a personal vehicle for work, the maximum tax-free allowance is 57 cents per kilometre.
For night travel allowances, see below.
What are per diem rates in Finland?
Per diem rates in Finland vary based on the duration of the trip.
In Finland, a “day of travel” constitutes a period of no more than 24 hours from when the employee sets out from their home on the business trip, to when they return home.
Several deductions or changes can also be made to the per diem rates, depending on what is included:
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Accommodations and night travel
Accommodation for overnight or multi-day business travel should be reimbursed for actual expenses in addition to the per diems provided. The reimbursement is tax-free as long as it is accompanied by a receipt.
In addition, a night travel allowance of €16 should be paid if:
the employee is owed a per diem for a day of travel, and
the employer does not pay an accommodation allowance or arrange for free accommodation or a sleeping car berth, and
at least 4 hours during the day of travel are between the hours of 9:00PM and 7:00AM.
If the employer chooses the temporary workplace and means of transport, it will be assessed on the actual means of transport used. The assessment of what is considered a temporary workplace is individual to each employee.
Per diem rates for international business travel
For business travel outside of Finland, the maximum tax-free amounts depend on the destination of the trip.
The employee shall be paid the following per diem for every day of travel (24-hour period) spent in a foreign country for business.
If the international business trip lasts less than 10 hours, the employee should be paid based on the amounts and deductions applicable to domestic business trips.
The following list highlights per diem rates for commonly-visited destinations. A full list can be found on the Finnish Tax Administration website.
Deductions and adjustments
Similar to domestic travel, the employer may make the following per diem deductions or adjustments depending on the circumstances of the trip:
FAQs on Finland Per Diem Rates
- No, employees do not need to provide receipts for meals and living expenses to substantiate per diem rates. Per diems are paid on a flat rate based on destination and duration of the business trip.
- Per diem expenses are not taxed in Finland so long as:
- The place travelled to for business is more than 15 kms away from the employee’s main workplace or home, and more than 5 kms away from both the employee’s main workplace and home.
- The per diem payment does not exceed the maximum amount defined by the Finnish Tax Administration.
- Per diem rates are reimbursed to employees after the trip. Employees should present a report to the employer that details:
- the duration and destination of the trip
- receipts for exact travel expenses for airfares, train tickets, and accommodation expenses
- a record of kilometres driven with a personal vehicle during the trip
Make business travel management easy with Perk
In Finland, per diems don’t cover everything, which means there are plenty of travel expenses to keep track of.
This means tracking expenses and receipts, managing employee travel, calculating reimbursements for various categories, and determining the appropriate rates can all become messy. This requires a lot of administrative time and energy from employees.
A great business travel management platform, like Perk, allows you to keep everything in one place. We provide third-party integrations that allow you to keep everything streamlined and organised. Finally, book, manage, track, and reimburse travel expenses effortlessly.
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Growth Marketing Director
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