For startups, the research allowance (Forschungszulage) is especially valuable – because it brings in real money even with no profit. It is offset against your tax, and any excess amount is paid out. Anyone not yet making profits therefore receives it in full as a refund in their account: up to 35 % of R&D costs, technology-open and as a statutory entitlement rather than a competitive process.
Why the research allowance suits startups
- Payout instead of tax saving: With no tax liability the allowance is paid out – as liquidity in the capital-intensive early phase. Details: Payout even with no profit.
- Legal entitlement instead of first-come-first-served: no budget cap, no application deadline in a race against others – the entitlement exists once the criteria are met.
- Increased SME rate 35 %: startups almost always fall under the SME definition and receive the higher rate.
- Founder’s own work counts: 100 €/h for shareholders who do research themselves increase the assessment base.
- Usable retroactively: expenses from 2022 onwards can still be activated – including from before the current team was founded.
The catch: the BSFZ certificate
The hard part is not the calculation but proving that your work qualifies as research and development in the sense of the law. Software and tech startups in particular describe their work in product and development language – and get rejected. What matters is bringing out the technical knowledge gap and the risk: Research language instead of development language. What the BSFZ typically rejects is shown by the most common reasons for rejection.
What this means in practice
A fully worked-through startup scenario – an R&D team plus founder’s own work, with no profit – can be found in the worked example. The funding rates and the cap are explained under Amount & funding rates, the conditions under Requirements.
Estimate your potential in the research allowance calculator or start the free funding check. With full support, the fee is success-based and only falls due once the funding reaches you – no fixed fee, no upfront risk in the early phase.
Frequently asked questions about the research allowance for startups
Do startups receive the research allowance even with no profit?
Yes. The research allowance is offset against the assessed tax; any excess amount is paid out. Anyone with no profit and therefore no tax liability receives it in full as a refund – real money instead of a mere tax saving.
Is the research allowance a grant or an entitlement for startups?
A statutory entitlement. Unlike classic grant programmes, there is no budget, no quota and no first-come-first-served process. If your project meets the R&D criteria and the BSFZ certificate is in place, the entitlement exists – technology-open and independent of company size.
How much research allowance can a startup receive?
As SMEs, startups receive the increased rate of 35 % of eligible expenses. From 2026, an assessment base of up to €12M per year is possible – that is up to €4,200,000 of funding annually. The exact amount depends on your R&D costs.
Do the founders’ own contributions count?
Yes. Own work by sole traders and shareholders is eligible at 100 €/h (up to 2080 h/year). Especially for startups whose founders do research themselves, this noticeably raises the assessment base.