Calculate the German Forschungszulage: 25% tax credit on eligible R&D personnel costs, up to EUR 500,000.
The maximum eligible expenditure is EUR 2,000,000, resulting in a maximum credit of EUR 500,000 per year.
What is the Forschungszulage?
The Forschungszulage (Research Allowance) was introduced in 2020 under the Forschungszulagengesetz (FZulG). It provides a 25% tax credit on eligible R&D personnel costs, up to a maximum eligible expenditure of EUR 2 million per year (maximum credit: EUR 500,000). The credit is offset against the company's income or corporate tax.
What expenditure is eligible?
Eligible costs are primarily personnel costs for employees working on qualifying R&D projects (basic research, applied research, or experimental development). Contract research costs are eligible at 60% of the invoiced amount. The R&D project must be certified by the Bescheinigungsstelle Forschungszulage (BSFZ).
Can all companies claim the Forschungszulage?
Yes. Unlike many other R&D incentives, the Forschungszulage is available to all companies subject to German income or corporate tax, regardless of size, industry, or profitability. Even loss-making companies can receive the credit as a cash payment if it exceeds their tax liability.
Disclaimer: These calculations are estimates based on 2025 German tax rules and should not be considered professional tax advice. Consult a Steuerberater for your specific situation.
The Forschungszulage, who qualifies, and how much you can claim
What is the Forschungszulage?
The Forschungszulage is a tax credit for research and development activities introduced in 2020. Companies receive 25% of eligible R&D personnel costs back as a tax credit. The maximum eligible amount is €4 million per year, giving a maximum credit of €1 million. Unlike a deduction, it directly reduces your tax bill euro for euro.
Who can claim the Forschungszulage?
All companies in Germany can claim it, regardless of size or industry — from a one-person startup to a large corporation. Sole traders, partnerships, and corporations all qualify. You must conduct R&D activities that are new or significantly improved products, processes, or services. The R&D must involve systematic investigation or experimentation.
What costs are eligible?
Eligible costs include wages and salaries of employees directly working on R&D projects, plus 15% flat rate for overhead costs. For contract research (Auftragsforschung), 60% of the contract value is eligible. A company with 3 researchers earning €70,000 each has eligible costs of €210,000 × 1.15 = €241,500, giving a Forschungszulage of about €60,375.
How do you apply?
The process has two steps. First, apply to the Bescheinigungsstelle Forschungszulage (BSFZ) for certification of your R&D project. They confirm your project qualifies. Second, claim the credit in your annual tax return (Anlage FZ). The BSFZ decision typically takes 3-4 months. You can apply retroactively for up to 4 years.
Can startups and loss-making companies benefit?
Yes, this is a key advantage. If your Forschungszulage exceeds your tax bill, the excess is paid out as a cash refund. A startup with no profits that spends €200,000 on qualifying R&D staff gets a €50,000 cash payment from the Finanzamt. This makes it one of the most startup-friendly R&D incentives in Europe.
Can you combine it with other R&D funding?
Yes, the Forschungszulage can be combined with other public funding programmes like ZIM, BMBF grants, or EU Horizon Europe. However, costs funded by other programmes cannot be double-counted. If a researcher is 50% funded by a ZIM grant, only the remaining 50% of their salary qualifies for the Forschungszulage.
Bundesfinanzministerium-Aligned: Based on 2025 Bundesfinanzministerium rates and thresholds. For personal advice, speak to a qualified Steuerberater (tax adviser).
Disclaimer: This calculator provides estimates based on current German tax rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax adviser before making financial decisions. Read our terms
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