Sachbezüge (benefits in kind) are non-cash advantages employees receive instead of salary, such as vouchers, free meals or company housing. They are, in principle, taxable and social-security-liable pay. For recurring benefits in kind a monthly threshold of €50 applies (§ 8 (2) sentence 11 EStG); free meals and accommodation are valued at official benefit-in-kind values (Sachbezugswerte). For vouchers and prepaid cards, the 'in addition to' rule and the ZAG criteria decide whether a benefit in kind exists at all.
At a glance
- Non-cash advantages instead of salary; in principle taxable and social-security-liable pay
- Monthly €50 threshold (Freigrenze) for recurring benefits in kind (§ 8 EStG), since 2022 (previously €44)
- This is a Freigrenze, not an allowance (Freibetrag): if the amount is exceeded even slightly, the entire benefit becomes taxable and social-security-liable
- Vouchers and prepaid cards count as benefits in kind only if they are granted in addition to salary already owed (§ 8 EStG) and meet the criteria of the Payment Services Supervision Act (ZAG)
- Free meals and accommodation are valued at official benefit-in-kind values (2026: meals €345 per month, accommodation €285 per month)
Key valuation rules
- €50 threshold: applies per month and pools all benefits in kind that are not valued separately; any unused amount cannot be carried into the next month
- Vouchers and prepaid cards: favourable treatment only if granted on top of salary and usable solely for goods or services; pure cash substitutes with a cash function are treated as salary
- Official benefit-in-kind values (Sozialversicherungsentgeltverordnung, SvEV): free meals in 2026 total €345 per month (breakfast €71, lunch and dinner €137 each), free accommodation €285 per month
- History: until the end of 2021 the threshold was €44 per month
FAQ
What counts towards the €50 threshold?
All recurring benefits in kind in a month that are not valued in their own right, such as vouchers or store credit. Items with their own rules are not included, for example officially valued meals or separately regulated small gifts.
Are vouchers and prepaid cards tax-free?
Only under two conditions: they must be granted in addition to salary already owed (§ 8 EStG) and meet the ZAG criteria, meaning they are limited to obtaining goods or services. Cards with a cash-withdrawal or transfer function count as salary and are fully taxable and social-security-liable.
How are meals and accommodation valued?
Through the official Sachbezugswerte in the SvEV, not at the actual market price. In 2026, free meals are valued at €345 per month (breakfast €71, lunch and dinner €137 each) and free accommodation at €285 per month.
Freigrenze or Freibetrag – what is the difference?
With an allowance (Freibetrag), only the amount up to the limit would be tax-free. The €50 limit is a Freigrenze instead: once exceeded, the entire benefit in kind becomes taxable and social-security-liable, not just the excess.
Last updated: August 2026
This article provides general information and is not a substitute for legal advice in individual cases.
