Research allowance: eligibility requirements at a glance
Whether you receive the research allowance (Forschungszulage) depends on two conditions: your project must qualify as research and development (R&D) within the meaning of the law, and your company must be subject to tax. Whether the project meets the R&D criteria is assessed by the certification body for the research allowance (BSFZ).
Who is entitled to apply?
Entitled to apply are taxpayers subject to unlimited and limited taxation, provided they are not exempt from taxation. In practice this means: almost every company subject to tax in Germany that carries out its own research and development – regardless of sector, size and legal form. The research allowance is technology-open and a legal entitlement, not a discretionary subsidy with a limited budget.
Which projects are eligible?
Research and development within the meaning of the FZulG is funded. To qualify, a project must meet the R&D criteria – in particular:
- Novelty – it aims at new insights or solutions.
- Scientific-technical risk – the outcome is uncertain at the start.
- Systematic approach – it is carried out systematically and in a traceable way.
Unsure whether your project meets these criteria? The quick eligibility test gives you an initial, non-binding assessment in six questions.
What is eligible is the research share, not the entire project. Where the line falls is sector-specific – examples for Software & AI, Medical technology & Biotech, Mechanical engineering and Defense.
Which costs are eligible?
The assessment base – as of 2026 – is made up above all of:
- R&D staff costs (gross employer cost, proportional to the R&D activity).
- Owner work of sole traders/shareholders: 100 €/h, up to 2,080 h/year.
- Contract research within the EEA: 70 % of the costs are eligible.
- Overhead flat rate of 20 % (for projects starting from 2026).
Under certain conditions, further expenses are eligible. The exact allocation – such as the relevant point in time of the expense – we clarify in the funding check. All cost types in detail: eligible costs of the research allowance.
How high is the funding?
The funding rate is 25 % of the eligible expenses, and 35 % for SMEs. From 2026 the assessment base is up to €12M per financial year – for SMEs that means up to €4,200,000 of funding per year. Estimate your individual order of magnitude without obligation in the research allowance calculator.
Which deadlines apply?
You can file the BSFZ application before, during or after the project. The tax claim is filed by your tax advisor with the tax office after the end of the respective financial year. Expenses can be activated up to 4 years retroactively – back to the year 2022; why acting retroactively is now urgent.
Frequently asked questions about the eligibility requirements
Who can apply for the research allowance?
In principle every company in Germany subject to unlimited or limited taxation that is not exempt from taxation and carries out its own research and development – regardless of sector, size and legal form. The allowance is technology-open and a legal entitlement.
Which projects are eligible?
Research and development within the meaning of the FZulG: projects that aim at something novel, carry a scientific-technical risk and are carried out systematically (in a planned way). Pure routine development, adaptation or market launch are not eligible.
Which costs are eligible?
Above all R&D staff costs and – for projects from 2026 – the owner work of sole traders and shareholders at 100 €/h (up to 2,080 h/year), 70 % of contract research within the EEA and an overhead flat rate of 20 %.
Until when can I apply retroactively?
Expenses can still be activated up to 4 years retroactively – back to the year 2022. For the 2022 expense year the deadline is particularly tight.