Entrepreneur Business Travel in Finland – What You Can Claim Tax-Free (And What You Can’t)

When you’re on a business trip (not commuting), there are tax-exempt daily allowances you can benefit from. These compensate for increased expenses on food and other personal costs without needing receipts for the expenses.

The main difference when it comes to reporting the km and daily allowances to the Incomes Register is that when operating through a LLC reporting is a must, when operating as a sole trader, the allowances are reported on the business tax return.

1. Per Diem (Päiväraha) – Tax-Free Daily Allowance

Per diem is the most common and simplest way to get compensated for meals and minor expenses during business trips.

2025 Domestic Per Diem Rates:

• Full per diem (over 10 hours): €53/day

• Partial per diem (6–10 hours): €24.
  
  

For any day of travel, when you receive free meals, or meals included with the travel ticket, the maximum per diem is half the amount. Free meals comprise two free meals in the case of full per diem, and one free meal in the case of partial per diem.

For international travel, the Tax Authority has specified the maximum amount of tax-exempt per diem. You can find the amounts and guidance from the link in the end of the post.

Key Conditions:

• Destination must be over 15 km from main or regular workplace or home.

• Trip must be at least 6 hours.

• Document the trip clearly: date, reason, destination, distance, hours.

Common Mistake I See:

Entrepreneurs often pay meals directly with the company card and book it as “travel expenses.” This disqualifies them from per diem and the cost becomes a taxable benefit or non-deductible.

My tip: Pay your meals personally and claim the tax-free per diem instead. It’s cleaner, easier, and saves tax.

2. Kilometre Allowance (Kilometrikorvaus) – When Using Your Car

If you use your personal car for business travel (not daily commute), you are eligible for tax-free kilometre allowance.

2025 Rate: €0.59/km

• Additional cents per km if you're transporting heavy equipment, passengers, trailer, etc.

• Applies to both freelancers, sole traders, and company owners.

• Trips over 15 km, outside normal workplace.

• Documented purpose, destination, distance.

  
  

Mileage log is required. I recommend using a simple spreadsheet or a mileage app.

3. Accommodation Costs

Hotel stays or short-term rentals related to travel are fully deductible as long as:

• The purpose is business.

• It’s not regular or permanent in nature as the eligibility of the deduction can be questioned.

• It’s properly invoiced and documented.
  
  

4. Ferries, Flights, Parking & Public Transport

Fully deductible when:

• Business-related.

• Documented (save receipts).

• Matched with purpose and time of the trip.

Best Practices for Business Travel Reimbursements

• Log every trip clearly:

  • Date, destination, purpose, time of departure/return.

• Don’t pay meals from the company card.

• Use per diem instead.

• Keep receipts for travel-related costs (flights, hotels, parking).

• Use a mileage log or app if driving your own car.

• Operating through a LLC? Remember to report the km and daily allowance to the Incomes Register!

• Ask your accountant (me!) if you’re unsure.
  
  

  Check the local Tax Authority's guidance on tax-exempt allowances in 2025 here.

  Safe business travels!