On 1 January 2026 the research allowance (Forschungszulage) became significantly more attractive through the tax-based immediate investment programme / investment booster. The most important changes: a higher assessment base of €12M per year, a new overhead flat rate of 20% and a higher hourly rate for owner work. For SMEs this makes up to €4,200,000 of funding per year possible.
The 2026 changes at a glance
- Assessment base €12M per financial year and group of companies (previously €10M).
- Overhead flat rate 20% on staff costs – without individual proof (for projects starting from 2026).
- Owner work 100 €/h for sole traders and shareholders (previously 70 €/h), up to 2080 hours per year.
- SME rate 35% remains in place; the standard rate is 25%.
What this means for the maximum funding amount is summed up under Amount & funding rates.
What the overhead flat rate brings
The new overhead flat rate of 20% is the most noticeable change for many companies. Instead of laboriously proving individual overheads, a flat surcharge is applied to staff and owner-work costs. This raises the assessment base – and with it the allowance – without any additional documentation effort. The example calculations show how strong the effect is.
Who benefits most in 2026
- Staff-intensive R&D teams benefit most from the 20% flat rate on staff costs.
- Founder-led startups make use of the higher owner-work rate of 100 €/h – more on this under the research allowance for startups.
- Companies with external R&D can claim 70% of contract research in the EEA.
Two points in time that matter
Important: two different points in time determine what applies. The date the expense is incurred (when the costs arise) governs the rate and the cap. The project start governs which instruments are available – such as the 70% contract-research rate and the 20% overhead flat rate.
| Expense period | Rate | SME | Assessment base |
|---|---|---|---|
| Aufwendungszeitpunkt 01.07.2020 – 27.03.2024 | 25% | 25% | €4M |
| Aufwendungszeitpunkt 28.03.2024 – 31.12.2025 | 25% | 35% | €10M |
| Aufwendungszeitpunkt ab 01.01.2026 | 25% | 35% | €12M |
Strategy: project splitting
If you have been researching for several years and continue to do so, you can benefit from splitting the work: a retroactive project (e.g. 2022–2025) secures the earlier years, while a project starting from 2026 takes advantage of all the improvements. The condition: the projects must be genuinely independent in content – a different research subject, a different paradigm or a different methodology, not merely a time segment of the same undertaking.
Work out your possible funding in the flat-rate calculator or start the free funding check right away.
Frequently asked questions about 2026
How high is the research allowance in 2026?
The rate is 25%, and 35% for SMEs. From 2026 the assessment base is €12M per year – up to €4,200,000 of funding per year for SMEs.
What is the overhead flat rate?
For projects starting from 2026, a flat 20% of all other eligible expenses incurred in the respective financial year can additionally be claimed – without individual proof of overheads. This noticeably raises the assessment base.
Is it worth splitting into several projects?
Often yes. A retroactive project secures the earlier years; a project starting from 2026 takes advantage of the improvements (70% contract research, 20% overhead flat rate). The projects must be genuinely independent in content – and we support you with exactly that.