Research allowance amount: up to EUR 4.2 million a year

Assessment basis times funding rate: 25 %, for SMEs 35 %. The calculator below shows the result for EUR 600,000 personnel costs and EUR 150,000 contract research.

Check the funding amount in a first consultation Dossier
  • Funding rate 25 %, for SMEs 35 %
  • Assessment basis capped at EUR 12 million a year
  • Up to EUR 4.2 million allowance for SMEs

Written by Max Nodes, Founder and Managing Director · 25 of 25 supported BSFZ applications certified (as of 09/2026) · Last updated: · Law as of:

Your research allowanceLegal position from 2026
SME under Annex I GBER
fewer than 250 employees, up to EUR 50 million turnover or EUR 43 million balance sheet total
Project and year
The 20 % flat rate applies only to projects started after 31 December 2025 (§ 3 (3b) FZulG). Cap: EUR 12 million for expenses from 2026, EUR 10 million for 2024 and 2025 (§ 3 (5) FZulG).
R&D personnel costs (employer gross)EUR 600,000
Development contracts with third parties · 70 %+ EUR 105,000
Own contributions (§ 3 (3))+ EUR 0
Overhead flat rate 20 %+ EUR 141,000
Assessment basisEUR 846,000
Funding rate 35 %EUR 296,100
Research allowance per year EUR 296,100 35 % funding rate · contract fee: 24.5 % before the 20% flat rate

Offset against the tax assessment, any surplus is paid out (§ 10 FZulG)

Take these figures into a first consultation

How much your allowance is worth

The research allowance is 25 % of the assessment basis, or 35 % for SMEs. For contracts placed after 27 March 2024, 70 % of the fee is eligible; before the additional flat rate, that equals 17.5 % or 24.5 % of the contract fee. The assessment basis is capped at EUR 12 million a year; the maximum allowance is EUR 4.2 million for SMEs or EUR 3 million for large enterprises. For new projects, the 20 % flat rate increases the assessment basis separately.

The essentials of the funding amount

  • Funding rate
    25 %, for SMEs 35 %
  • Assessment basis
    Personnel costs, own contributions and 70 % of fees for contracts placed after 27 March 2024; capped at EUR 12 million a year
  • Share of contract fee before the flat rate
    17.5 %, or 24.5 % for SMEs
  • Maximum allowance
    EUR 4.2 million (SME), EUR 3 million (large enterprise)
  • Own contributions
    EUR 100 per hour, at most 40 hours per week, sole proprietors and partners only
  • State aid limit
    State aid per project: EUR 15 million (§ 4 (3) FZulG)

    • How does the amount of the allowance follow from the costs?

    Personnel costs, own contributions and 70 % of contract research add up to the assessment basis; from 2026 a 20 % flat rate is added, then the funding rate is applied.

    From personnel cost to allowance: EUR 800,000 in personnel costs, SME, project from 2026
    R&D personnel costs(employer gross)EUR 800,000Overhead flat rate 20 %EUR 160,000Assessment basisEUR 960,000Funding rate 35 %EUR 336,000

    The 20 % overhead flat rate raises the assessment basis to EUR 960,000; at a 35 % funding rate that is an allowance of EUR 336,000.

    Small startup (SME)

    Three developers, EUR 240,000 in personnel costs, project from 2026.

    R&D personnel costs (employer gross)EUR 240,000
    Overhead flat rate 20 %+ EUR 48,000
    Eligible expensesEUR 288,000
    Funding rate35 %
    Research allowance per yearEUR 100,800

    Includes the 20 % flat rate on the assessment basis (§ 3 (3b) FZulG).

    Large enterprise, no SME bonus

    EUR 2.4 million in personnel costs, more than 250 employees.

    R&D personnel costs (employer gross)EUR 2,400,000
    Overhead flat rate 20 %+ EUR 480,000
    Eligible expensesEUR 2,880,000
    Funding rate25 %
    Research allowance per yearEUR 720,000

    Without SME status, the funding rate drops from 35 % to 25 %.

    How much research allowance does a company get?

    One example includes contract research; two more company sizes appear further up this page.

    Funding rate: 25 % or 35 %

    Large enterprises receive 25 % of the assessment basis, SMEs 35 % — the 10 percentage point increase is set out in § 4 (1) FZulG. An SME has: fewer than 250 employees, at most EUR 50 million turnover or EUR 43 million balance sheet total.

    SME with a development contract

    EUR 950,000 in personnel costs plus a EUR 200,000 contract with an EEA institute.

    R&D personnel costs (employer gross)EUR 950,000
    Contract research, 70 % of EUR 200,000+ EUR 140,000
    Overhead flat rate 20 %+ EUR 218,000
    Eligible expensesEUR 1,308,000
    Funding rate35 %
    Research allowance per yearEUR 457,800

    Only 70 % of the contract counts, and the flat rate applies to it too.

    The 20 % flat rate applies to the whole assessment basis, including the 70 % share of contract research (§ 3 (3b) FZulG).

    What limits the amount at the top?

    Three limits work together: the cap on the assessment basis, the funding rate, and the state-aid ceiling per company and project.

    Limits on the R&D Tax Credit per fiscal year
    Fiscal yearCap on the assessment basisFunding rateState-aid ceiling per project
    2020–2023EUR 4 million25 % (uniform)EUR 15 million
    2024–2025EUR 10 million25 %, for SMEs 35 %EUR 15 million
    From 2026EUR 12 million25 %, for SMEs 35 %EUR 15 million
    If a company has several certified projects, the tax office adds them together: the assessment basis applies jointly to all projects in one fiscal year, not per project (§ 3 (5) FZulG). Only the combined total hits the cap.

    Get the funding amount confirmed in a first consultation

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    Max Nodes

    Max Nodes

    Founder and Managing Director of NOVARIS Consulting. Specialised in the German R&D tax credit (FZulG) since 2021; 25 of 25 accompanied BSFZ applications approved (as of 09/2026). Max Nodes