Company Christmas Party Costs: Allowance, Calculator & Berlin Prices
€110 per employee stays tax-free — but only if you do the sums right. Here you'll find what counts towards that limit, the trap most companies overlook, and what a company Christmas party in Berlin realistically costs at current market prices.
A company event such as a Christmas party comes with an allowance of €110 gross per attending employee — including VAT and all related costs such as the room, music and decor. You have this amount twice a year to spend. And this is key: the total cost is split across the actually attended people, not those who signed up — so every cancellation pushes up the cost per head.
How much can a company Christmas party cost per employee?
Up to €110 per attending employee, a company event stays free of income tax and social security contributions. The allowance hasn't changed since 2015 — lawmakers discussed raising it to €150, but that never happened. In real terms it is worth far less today than when it was introduced, and honest budget planning should account for that.
Is the €110 allowance gross or net?
Gross — including VAT. This is the most common miscalculation: catering quotes are usually net, so you need to add VAT before comparing the total with the €110 threshold. A €99 net menu is not €99 for allowance purposes — once VAT is added, the total usually lands somewhere between €106 and €118, depending on the split between food and drink, right at or above the limit. This is exactly where a party stops being tax-free.
VAT note for 2026: since 1 January 2026, the reduced 7% rate applies to food served in restaurants and catering, the reduced rate of 7% applies again, while drinks stay at 19%. What that means for package deals that bundle food and drinks depends on the individual case — your tax adviser will work it out from the actual quote.
What counts towards this limit?
Much more than most people think. What counts is the total event costs, including VAT — even the items that have nothing to do with food:
- Food and drinks incl. all package deals
- Room and venue hire
- Music, DJ, performers, programme and activities
- Decorations, technical equipment, staging, lighting
- Travel and accommodation costs, if the employer covers them as part of the event
- Gifts, given out during the party
- Cost of plus-ones — attributed to the relevant employee
The company’s own internal costs don’t count, though — wages for your own staff who organise the event, for example. You can see which elements come together at our venue in the format overview. If you’re not sure where an item belongs, it’s best to check with payroll up front — sorting it out afterwards is tedious.
Allowance Calculator: Will Your Party Stay Tax-Free?
Enter the figures from your quote. The calculator uses the standard method: gross total cost divided by the number of people who actually attend. Plus-ones are counted towards their employee.
Not tax advice. This calculator gives a simplified version of the standard calculation. It does not replace a review of your specific case. Legal position: August 2026. For a binding assessment of your event, speak to your tax adviser or payroll team.
What happens if you go over €110?
Good news first: this is an allowance, not a threshold. That means if you go over, the whole amount does not become taxable — only the part above €110 does. At €130 per head, that means €20 is taxable, not €130.
The employer can settle the tax on this excess amount at a flat rate of 25% (plus the solidarity surcharge and, where applicable, church tax). The advantage of the flat rate: staff pay no social security contributions on the benefit, and nobody finds an unexpected deduction on their payslip. The downside: it costs the company extra — reason enough to do the maths beforehand rather than afterwards.
How often does this apply?
The allowance covers two company events per year — besides the Christmas party, you could also use the site for, say, a team event on the ice . If you hold a summer party and a Christmas party in December, you can use the allowance for both. The benefit no longer applies from the third event in the year — though the company can then choose which two events to claim it for, and will sensibly pick the two most expensive.
What about partners and plus-ones?
Plus-ones are welcome, but their costs do not get their own allowance: they are added to the employee they are accompanying. In practice, this doubles the per-head amount for anyone bringing a guest — which makes it easy to go over the €110 mark. If you're inviting plus-ones, budget for them from the start, not as an afterthought.
What happens if people cancel?
This is the most expensive trap — and the one most guides leave out. The total cost is divided among the guests who actually show up. If you order for 100 people and 80 turn up, the same costs are spread across 80 heads: the amount per person rises by 25% — and not a cent more has been spent.
A party that looked safe on paper — €105 per head, comfortably under the allowance — can end up at €131 once people cancel, and suddenly part of the cost is taxable. This hits hardest in flu and cold season, which is exactly when Christmas parties happen. For small teams , every single cancellation hits hardest in percentage terms. For large groups , the effect adds up across many heads.
What does a Christmas party in Berlin realistically cost?
Solid market figures for company Christmas parties are hard to find — what circulates online are rough ranges from agency blogs. So instead of inventing an average, here is what we can actually back up: our own published prices.
| Service | Net price p.p. |
|---|---|
| Set menu, 3 courses | €99.00+ |
| Menu, extended tier | €109.00+ |
| Menu, premium tier | €118.00+ |
| All-inclusive package, drinks packages, activities | Individual quote |
As a guide: on top of the menu price you'll usually pay for drinks and at least one activity, plus VAT. An evening with food, a drinks package and one programme item typically lands in a range that uses most of the tax-free allowance without necessarily going over it. You'll find all the menus on the page Christmas dinner Berlin, plus activities like Bavarian curling and ice skating can be combined freely. A concrete quote is more honest here than any sample calculation.
How do you plan your budget sensibly?
- Work backwards: Start with the tax-free allowance, not the programme you want. €110 gross per head, multiplied by a realistic headcount, gives you your tax-free budget.
- Plan a buffer for no-shows: Plan for around 5% to 10% fewer attendees than confirmed bookings — your own figures from previous years beat any rule of thumb.
- Keep net and gross apart: Quotes are usually net, but the allowance is gross. Don't skip this step.
- Make a clear decision on plus-ones: Either build them into the budget from the start, or leave them out entirely.
- Combine activities cheaply: Activities often cost less per head than an extra course — Ideas for your Christmas party show what's possible.
- Calculate any overage in advance: If you want to go over on purpose, factor in the 25% flat tax on the extra amount from the start.
Need a quote with numbers?
Tell us your group size, preferred date and budget range — you'll get a quote you can check straight against the tax-free allowance, rather than a price list to piece together yourself.
Frequently asked questions about costs and the tax-free allowance
How much can a company Christmas party cost per employee?
A company event stays free of income tax and social security contributions up to €110 gross per participating employee. The allowance covers two company events a year. The threshold hasn't changed since 2015 — the same figure that applied ten years ago still sets the limit today.
Is the €110 figure gross or net?
Gross — VAT included. Catering and venue quotes are usually priced net, so you need to add the VAT before you compare the total with the tax-free allowance. Skip that step and you make the most common mistake in the sums: a net price on a quote looks lower than the true cost once VAT goes on top.
What counts towards the €110 limit?
The total cost of the event, VAT included. That covers food and drinks, room hire, music and programme, decoration and technical equipment, travel and accommodation costs the employer covers, gifts given as part of the party, and the cost of any plus-ones.
Is everything taxable once you go over €110?
No. This is a tax-free allowance, not a cut-off that wipes out the whole benefit once you pass it. Only the amount above €110 is taxable. The employer can cover that extra portion at a flat 25%, plus solidarity surcharge and, where it applies, church tax.
How many times a year can you use the allowance?
For two company events per year. Hold more than two, and you can choose which two to claim the tax benefit for — usually the two most expensive ones, since that's where the allowance saves you the most.
What happens if employees cancel at short notice?
The total cost is divided by the number of people who actually turn up, not the number who signed up. Plan for 100 and celebrate with 80, and the same total is split across 80 heads — the amount per person rises by 25% and can push you over the allowance without anyone spending a euro more.
Do partners and plus-ones count too?
Plus-ones don't get an allowance of their own. Their costs are added to the employee who brought them, which in practice roughly doubles that employee's per-head amount. Inviting partners or other plus-ones? Build that into the budget from the start, not as an afterthought.