Can I Claim Bewirtungskosten (Business Meals and Entertainment) as a Business Expense in Germany?
Partially: 70% of genuine business entertainment costs are deductible as Betriebsausgaben under §4 Abs. 5 Nr. 2 EStG. A Bewirtungsbeleg receipt listing all attendees, the business reason, and the date is mandatory. The remaining 30% is a permanently non-deductible business cost.
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What Federal Central Tax Office (BZSt) & Finanzämter says
§4 Abs. 5 Nr. 2 EStG: business entertainment costs are 70% deductible. Documentary requirements are strict: a proper Bewirtungsbeleg is required for all claims. The BMF letter of 19 November 2025 sets the current documentation rules and adds the e-invoice rules that apply since 1 January 2025. It replaces the 2021 letter, which still applies to meals up to 31 December 2024. The proof is a written record of the place, day, participants, occasion and amount. For a meal in a restaurant the restaurant invoice is attached and the record only needs the occasion and participants. The invoice must show the day of the meal, and a note that the service date equals the invoice date is enough. Above €250 the invoice also needs the tax number or USt-IdNr. and the name of the host. A general line such as food and drinks is not enough, as the items must be listed one by one. The host signs the record, and a digital record is accepted if it is linked to the invoice. Cash receipts must also meet the TSE security-device rules.
When you can claim
- Client dinners, business lunches, or meals during which business is discussed: 70% deductible
- Entertainment of business partners, potential customers, or advisors where a commercial relationship exists
- Staff meals at external restaurants during business events (though internal staff canteen meals may qualify for full deduction)
- A restaurant meal with a signed Eigenbeleg that lists the occasion and every participant, with the itemised invoice attached
When you cannot claim
- The 30% non-deductible portion: this is a hard statutory rule, not a cashflow issue
- Meals where the primary purpose is personal or social, not business
- Entertainment where the Bewirtungsbeleg does not list all attendees' names and the specific business reason
- Costs that are obviously excessive for the business relationship: Finanzamt may challenge proportionality
Good to know
Pro tip: Write the business reason and list of attendees on the restaurant receipt immediately: digital apps like AccountsOS capture this on upload. A missing or incomplete Bewirtungsbeleg means zero deduction, not 70%. Ask the restaurant for a proper Rechnung, not just a receipt.
Important: The Bewirtungsbeleg must show: date, name of restaurant, attendees (including yourself), specific business reason discussed, total amount. The Finanzamt routinely disallows claims where the 'business reason' is vague (e.g., 'client meeting' without more detail).
Related expenses
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