Per diem rates in Portugal: a brief guide (2026)

Updated: April 2026

Planning a business trip to (or within) Portugal soon? If you’re an accountant or finance manager, you’ll need to understand the standards and guidelines surrounding per diem rates. This is a key part of business travel expense management.

Per diem rates vary by country and for different kinds of trips. We’ve put together this guide to help you get up to speed on everything you need to know about per diem rates in Portugal. Read on to learn more!

What are per diem rates?

The phrase “per diem” means “by the day” in Latin. Per diem rates are standard rates paid by employers to their employees to cover the cost of a business trip. 

This daily allowance covers business expenses incurred on the trip, like food, accommodation, transportation, and more. Many governments provide guidelines for per diem rates.

How are per diem rates calculated in Portugal?

While Portugal doesn’t have any legislation on per diem rates for the private sector, most employers use the public sector rates as a standard. These are defined in several pieces of Portuguese legislation, such as Decree-Law No. 106/98 of April 24th, Ordinance No. 1553-D/2008 of December 31st, and Decree-Law No. 137/2010 of December 28th.

Per diem rates in Portugal are tax-exempt up to a certain amount. Amounts greater than the government-defined amount are taxable.

What is covered in the per diem rates?

Portugal’s per diem rates cover travel expenses and transportation when employees are displaced from their necessary domicile for work-related reasons.  A “necessary domicile” is considered:

• The location where the employee accepted their position (if they are still providing services there)

• The location where they are performing their duties

• The location where the centre of their functional activity is located

If free meals or accommodation are provided, the per diem rate is not offered. The per diem rate may cover accommodation, or it may be replaced with a reimbursement of the price of a hotel with up to three stars or equivalent, up to a limit of 50 euros.

Daily travel vs. successive-day travel

Travel that takes place within a period of 24 hours and doesn’t imply the need for new expenses is considered daily travel. Daily travel expenses may be covered by a per diem if the travel is more than 20 km from the necessary home.

Travel that takes place for more than 24 hours is considered successive-day travel, and is covered if it’s more than 50 km from the home.

These amounts are calculated from the outskirts of the location where the employee has their domicile to the closest point to the destination. 

Per diem rates for daily travel

If the travel covers, even partially, the periods between 1 pm and 2 pm or between 8 pm and 9 pm, the daily allowance is paid out at 25%.

If the travel involves accommodation, the daily allowance is paid out at 50%. This applies to travel that does not extend into the next day, when the employee lacks access to public transport to return to their residence by 10 pm. 

Per diem rates for successive-day travel

Per diem amounts can be claimed for successive-day travel for up to 90 days. All days are compensated at 100%, except for the day of departure and the day of return. For these, the following rules apply:

Day of departure: 

Day of arrival:

Per diem rates for Portugal in 2026

Different rates apply to certain members of the National Republican Guard (Guarda Nacional Republicana. These are laid out in Ordinance No. 864/2009 of August 13th, and include: 

Are per diem rates the same in different Portuguese cities?

The Portuguese government has the same per diem rates across the country. Other countries may have their own per diem rates for individual Portuguese cities. For example, the US federal government per diem rates for Lisbon, Portugal are:

And the rates for other Portuguese cities and regions are:

Porto (Oporto):

Cascais and Estoril:

Faial Island (summer):

Faial Island (winter):

Madeira Islands:

Oeiras:

Ponta Delgada (summer):

Ponta Delgada (winter):

Sao Miguel Island:

Per diem rates for international business travel

The per diem rates for Portugal vary by country. US rates are listed above, while UK rates can be found on the government website. The UK government offers per diem rates for several Portuguese cities and regions. These include:

Azores, Portugal:

Funchal (Madeira), Portugal:

Lisbon, Portugal:

Porto (Oporto), Portugal:

Portimao, Portugal:

Why it’s crucial to know about per diem rates in Portugal

It’s good practice to pay for employees’ expenses when they’re travelling on business, and per diem allowances offer a convenient way to do this. It’s important to know about government standards for per diem rates to make sure your company is complying with tax regulations. 

Per diem rates have many benefits: they can help create more predictable budgets, reduce paperwork, simplify travel for employees, and ensure fairness by standardising reimbursements.

Be sure to familiarise yourself with Portuguese government guidelines for per diem rates when planning business travel in Portugal. If you’re travelling internationally, consult your own country’s per diem rates for business travel in Porto, Lisbon, or elsewhere.