This guide outlines the rules and best practices for reimbursing business expenses in Greece, ensuring compliance with local tax regulations and the standards set by the Greek Tax Authority (AADE).
1. General Principles
In Greece, business expenses can be reimbursed tax-free if they are:
Directly related to business activity
Reasonable in amount
Properly documented with valid invoices or receipts
All documentation must clearly show:
The company name (e.g., Horizons Global Technology Greece S.M.P.C. or Horizons Global Technology Greece Single Member P.C.)
The supplier’s tax ID (e.g., CUIT or CUIL)
Date and description of the expense
Total amount and VAT breakdown
2. Travel Expenses
Reimbursable travel expenses include:
Airfare, train, bus, and tram tickets for business trips
Taxi fares and rental cars, provided they are justified and supported by receipts
Parking fees and tolls, which must be documented separately from mileage logs
There is no official per-kilometer mileage reimbursement rate in Greek law. If a company chooses to reimburse mileage, it must define its own rate and require detailed logs.
3. Accommodation & Meals
Hotel stays during business travel are reimbursable with valid invoices
Meals are reimbursable if they are directly tied to business activities (e.g., client meetings or conferences) and are reasonable in cost
4. Per Diems
Per diems are tax-free if:
They are within the limits set by AADE
They are used for business-related travel
They are properly documented
2025 Reference Rates (still applicable in early 2026):
Domestic travel: ~50 EUR/day
EU travel: ~70–100 EUR/day
Non-EU travel: ~100–150 EUR/day
Amounts exceeding these limits may be treated as taxable income.
Taxation and Social Insurance Treatment
Important distinctions apply to how travel allowances are taxed in Greece:
Social Insurance Contributions: The monthly travel allowance is not subject to social insurance contributions.
Income Tax: The travel allowance is subject to income tax. However, tax exemption may apply when the allowance is substantiated by a formal travel expense log.
Minimum Taxable Amount: Under Article 80 of Law 4172/13, at least 1/25 per day (equivalent to 25% of the allowance) is always taxable, regardless of documentation.
To benefit from partial tax exemption, employees must maintain a detailed travel expense log that documents all business travel activities. Without this formal documentation, the entire allowance may be treated as taxable income.
5. Professional Supplies & Client Entertainment
Reimbursable items include:
Office supplies, training costs, and business tools purchased for work
Client entertainment (meals, drinks, events) if:
They are primarily for business purposes
They are reasonable in nature
They are supported by valid invoices
Excessive entertainment expenses may be flagged by AADE.
6. Health & Wellness Expenses
Generally not reimbursable, unless:
Related to a work injury or illness
Covered under a company-sponsored wellness or insurance plan
Examples of non-reimbursable items include:
Gym memberships
Yoga or swimming classes
Therapy or medical treatments not tied to work-related health needs
7. VAT Considerations
VAT must be properly itemized on invoices
Expenses must be invoiced in the company’s name to allow VAT recovery
VAT credits may be claimed if the expense relates to taxable business activity
8. Documentation & Compliance
All receipts and invoices must be retained for five years
Mixed-use expenses (e.g., hotel stays with personal components) must be broken down, and only the business portion is reimbursed
Undocumented or excessive expenses may be rejected or taxed
9. Summary of Reimbursable Expenses
✔ Tax-Free with Documentation:
Travel (air, train, bus, taxi, rental car)
Lodging and meals during business trips
Parking and tolls
Per diems within AADE limits
Office supplies and training
Client entertainment (reasonable and documented)
✘ Not Reimbursable:
Traffic fines
Personal health or wellness expenses
Excessive or undocumented costs