Forschungszulage · Germany’s R&D tax incentive
Germany pays back up to 42 % of your R&D.
We claim it in English.
Every company taxed in Germany has a legal right to it – startups, SMEs, founders and freelancers. The application is German only, so most international teams never claim. We write it for you, and you pay only if the money comes.
- 35 %
- of R&D costs for SMEs, 25 % for larger companies
- § 4 (1)
- +20 %
- overhead lump sum on top, for projects started from 2026
- § 3 (3b)
- €100/h
- for your own R&D hours as a founder or freelancer
- § 3 (3)
- 4 years
- back – 2022 claims expire on 31 Dec 2026
- § 169 AO
Calculator
What you can claim
Per fiscal year, under the law as read on 15 Oct 2026.
Who
Who can claim
Anyone with business or self-employed income taxed in Germany (§ 1 FZulG).
- Startups and companies – GmbH, UG or AG taxed in Germany – any size, any sector, any founder nationality.
- Foreign companies – with a German branch or permanent establishment, for the R&D done there.
- Founders and freelancers – Sole proprietors and freelance scientists or engineers claim €100 for every documented R&D hour.
- Partnerships – GbR, OHG, KG – the partnership claims, including agreed partner pay for R&D.
Who cannot
- Employees as private persons – the employer claims for their salary.
- Universities and non-profits that are tax-exempt – but companies that commission them can count 70 % of the fee.
- Companies in insolvency proceedings or in financial difficulty.
- A contractor doing research for a client – the client claims, not the contractor.
Independent researchers & postdocs
No professorship? Fund your own research.
If you work as a freelance researcher in Germany, every documented R&D hour on your own project counts – even before you earn a cent.
Per year, project started 2026 or later
| Your R&D hours (max. 40 a week) | 2,080 h |
| Valued at €100 per hour | €208,000 |
| + 20 % overhead lump sum | €249,600 |
| Allowance at 35 % | €87,360 |
| That is, per hour | €42 |
Part-time works the same way: 20 hours a week give about €43,680 a year. Not taxable as business income for sole proprietors (BMF letter, para. 284–285).
Calculate it – choose “Sole proprietor”What it takes
- Be self-employed – register as a freelancer or business in Germany. Employees cannot claim for themselves. § 1 FZulG
- Run a real R&D project – new, technically uncertain and planned – certified by the BSFZ before the claim. § 2, § 6 FZulG
- Mean business – the tax office expects you to aim for income from the results – licences, products, consulting. Research with no prospect of income counts as a hobby and earns nothing. § 2 (1) EStG
- Bridge the year – the allowance is paid after the fiscal year, with your tax assessment – not monthly. § 5, § 10 FZulG
- No double funding – hours already paid by a university position or grant do not count again. § 7 (2) FZulG
- Check your permit – non-EU nationals need a residence permit that allows self-employment. § 21 AufenthG
- Or found a company – a GmbH or UG can employ you and claim 35 % of your salary instead. § 3 (1) FZulG
What counts
Costs that count
Research, industrial research or experimental development with genuine technical uncertainty (§ 2 FZulG).
- Salaries
- of employees working on the project, plus the employer’s social security share.
- § 3 (1) FZulG
- Your own time
- €100 per hour from 2026 (€70 from Mar 2024, €40 before), up to 40 h a week.
- § 3 (3) FZulG
- Contract research
- 70 % of what you pay universities, institutes or firms in the EU/EEA.
- § 3 (4) FZulG
- Equipment
- depreciation of assets bought after 27 Mar 2024 and used only for the project.
- § 3 (3a) FZulG
- Overheads
- a flat 20 % on top of everything else, for projects begun in 2026 or later.
- § 3 (3b) FZulG
How
Four steps, one in German
We handle the German part. You keep the money.
- 01A call in English
Thirty minutes about what you are building and where it is uncertain. We tell you honestly whether it qualifies.
- 02We write it in German
The application to the BSFZ is German only. We write it from your material and give you an English version to check.
- 03Certificate
The BSFZ, a federal office, certifies the project as R&D – free of charge, usually within three months.
- 04Claim and payout
After the fiscal year your tax adviser files the claim via ELSTER. It is credited against your tax; whatever exceeds it is paid out.
Pricing
No allowance, no fee.
Nothing up front, no retainer. We are paid a share of the allowance, agreed in writing before we start, and only once it has been granted.
FAQ
Questions people ask
Do I need to speak German?+
No. The certification office and the tax office only work in German – that is exactly the part we take over. You talk to us in English.
We make losses. Is this worth anything?+
Yes. The allowance is set off against income or corporate tax, and anything above your tax bill is paid out in cash (§ 10 (1) FZulG).
Can I claim for past years?+
Yes, for four years after the year in which the costs arose. Claims for 2022 expire on 31 December 2026. The certificate can be applied for before, during or after a project.
What if the research failed?+
It still counts. Failure or abandonment is not a reason for exclusion – uncertainty is the point of R&D.
Is software development R&D?+
Only if it resolves a genuine technical uncertainty that the state of the art cannot answer. Routine development, adaptation and market launch do not count (§ 2 (2) FZulG).
Is the allowance taxable?+
For sole proprietors and partnerships it is not business income (BMF letter, para. 284–285). For corporations it is neutralised outside the balance sheet (para. 287).
Can I combine it with grants?+
Yes, but costs already funded by another grant – including EU funds – cannot be counted twice (§ 7 FZulG).
Is this tax advice?+
No. We prepare the technical R&D application. The claim to the tax office is filed by your tax adviser.