Can I apply for the research allowance myself?

Yes. Both the BSFZ application and research allowance application (ELSTER) at the tax office can be filed entirely in-house. What matters is a clean delineation from routine work and a clearly substantiated technical risk; this is where most DIY applications fail.

Applying for the Research Allowance Yourself or With Support?

The FZulG has no consultancy requirement: you can file the BSFZ application and research allowance application (ELSTER) entirely on your own. Realistically plan 40 to 80 working hours for a first application, plus about three months for the BSFZ review.

Have your case assessed in 30 minutes Dossier

No consultancy requirement: both stages are self-filed
First application realistically 40–80 working hours
Common rejection reason: weakly substantiated technical risk

Written by Max Nodes, Founder and Managing Director · 25 of 25 supported BSFZ applications certified (as of 09/2026) · Last updated: October 12, 2026 · Law as of: October 2026

At a glance

Apply yourself or get support

Compare tasks and responsibilities

Figures and details

The same application, worded twice: only the right-hand version shows the BSFZ novelty, technical risk and a systematic approach

The BSFZ checks these three criteria in every application (§ 2 FZulG). The Wording tab explains each row.

Key facts in brief

Yes, you can apply for the research allowance entirely on your own. The FZulG has no consultancy requirement: the BSFZ certifies the R&D project as the base ruling (§ 6 FZulG), then you file research allowance application (ELSTER) at the tax office after the end of the fiscal year (§ 5 FZulG). The tax office offsets the allowance against the tax liability, and any surplus is paid out (§ 10 FZulG). Realistically plan 40 to 80 internal working hours for a first application, plus about three months for the BSFZ review. What matters is whether novelty, technical risk and a systematic approach are argued convincingly; this is where most DIY applications fail.

The Essentials of the DIY Application

Stage 1: BSFZ certificate as the base ruling (§ 6 FZulG), filed electronically via the BSFZ portal
Stage 2: research allowance application (ELSTER) at the tax office after the end of the fiscal year (§ 5 FZulG)
Assessment: Offset against the tax liability, any surplus is paid out (§ 10 FZulG)
Effort: 40 to 80 internal working hours for a first application
Funding rate: 25 %, SMEs 35 % (§ 4 (1) FZulG); at most EUR 12 million assessment basis (Bemessungsgrundlage), up to EUR 4.2 million allowance
Biggest risk: Weakly substantiated technical risk: a common rejection reason

When Does Support Pay Off?

When support pays off, based on experience
Eligible Costs	In-House Experts	No In-House Experts
Under EUR 500,000 in eligible costs	DIY is usually the right choice	DIY manageable with a time investment
From EUR 500,000 in eligible costs	DIY remains reasonable	Support pays off almost always

This is an experience-based rule from NOVARIS, not a legal threshold: from EUR 500,000 in eligible costs, support pays off almost always, unless the company has its own FZulG experts in house. At this scale, the difference in funding clearly outweighs the fee, because a fully used assessment basis brings in more than the saved consulting hours. The fee is also success-based: 70 % is due only after the allowance is paid out.

How much time does the DIY application really take?

More than most people expect. Plan 40 to 80 internal working hours for a first application with one project, spread across six tasks.

The DIY application step by step: 40 to 80 working hours plus about 3 months of BSFZ review

Plus an ongoing 1 to 2 hours per week for time tracking, not included in the total.

Realistic effort per task
Task	Stage	Your Effort
Delineate R&D projects	Preparation	8–15 hrs
Write the BSFZ project description	Stage 1 (BSFZ)	15–30 hrs per project
Register and submit in the BSFZ portal	Stage 1 (BSFZ)	2–4 hrs
Complete research allowance application (ELSTER) via ELSTER	Stage 2 (tax office)	4–8 hrs per fiscal year
Ongoing time tracking and documentation	Continuous	1–2 hrs per week
Answer queries from BSFZ or tax office	Both stages	4–10 hrs

What drives the effort up

Multiple projects: Each project description is written separately, so effort scales almost linearly.
First application: The learning curve for BSFZ criteria and the portal hits hardest the first time.
Retroactive years: Time tracking and documentation have to be reconstructed afterwards.
Contract research: Contracts need review and the fee must be allocated correctly; 70 % of the fee is eligible (§ 3 (4) FZulG).

Relief since 2026: For eligible expenses from 01.01.2026, projects starting after 31.12.2025 qualify for the 20 % overhead flat rate (§ 3 (3b) FZulG). Overhead then needs no itemized proof, which noticeably reduces documentation effort.

If filing yourself takes too much time: the process, scope and fee of an R&D tax credit consultant are set out on the consulting page; providers with legal entity and fee model can be reviewed in the register: compare research allowance advisers.

What actually separates a DIY application from supported filing?

Both routes lead to the same allowance. The difference lies in time spent, rejection risk and how fully the assessment basis is used.

DIY application and application with support compared
Criterion	DIY	With Support
Time spent	partly 40–80 hrs internal per first application	yes a few interviews, we handle the rest
Rejection risk	partly higher without BSFZ routine, above all on the technical risk	yes project descriptions that match BSFZ assessment practice
Cost	no fees at the BSFZ or tax office, but 40–80 internal hours	success-based, 70 % due only after payout; no success, no fee
Evidence and documentation	partly time tracking, project description and research allowance application (ELSTER) prepared yourself	yes we prepare and align the documents
Assessment basis	partly the flat rate and contract research are easily overlooked	yes fully used, funding on average 40 % above the initial calculation
Track record	depends on experience and time budget	yes 25 of 25 accompanied BSFZ applications approved (as of 09/2026)

The funding level does not depend on who files the application: 25 % of the assessment basis, or 35 % for SMEs (§ 4 (1) FZulG). For externally commissioned R&D after 27 March 2024, the allowance before the additional flat rate is 17.5 % or 24.5 % of the fee. The assessment basis is capped at EUR 12 million, so the SME allowance is capped at EUR 4.2 million per year.

What separates a weak project description from a strong one?

Both applications describe the same project. Only one shows the BSFZ where the novelty, technical risk and systematic approach lie.

Weak and strong wording compared
Criterion	Weak: only the result	Strong: the route there
Novelty	“We developed a new piece of software.”	“At the outset it was open whether the chosen architecture would work technically.”
Technical risk	“The development was technically demanding.”	“The solution path was uncertain because existing methods demonstrably did not solve the problem.”
Systematic approach	“We proceeded step by step.”	“We tested two solution approaches against each other systematically and documented the results.”

The most common mistake: the application describes what was developed but not why the solution path was technically uncertain. That is exactly what the BSFZ checks, alongside novelty and a systematic approach.

Where do DIY applications fail most often?

These four mistakes repeat most often and cost real money.

Typical mistakes and their consequences
Mistake	Typical Consequence	Fixable Afterwards?
BSFZ rejection due to a weak project description	Claim for the project lost; appeal or new application costs several months	Partly, appeal and re-application are possible
Overhead flat rate not claimed	20 % of personnel costs missing from the assessment basis, every single year	Yes, as long as the assessment can be amended
Contract research allocated incorrectly	Cut by the tax office, or the 70 % of the fee goes unused	Partly, depends on the procedural stage
Time tracking missing or started too late	Cuts in a tax audit, in the worst case clawback	Hardly, difficult to fix retroactively

The most expensive mistake is rarely the rejection itself, which can often be fixed via appeal or re-application. It is the silently understated assessment basis: nobody notices it, and it repeats every funding year.

Which questions come up most often about the DIY application?

Can I apply for the research allowance without a consultant?+

Yes. There is no consultancy requirement: every eligible company can complete both stages itself, the BSFZ application via the BSFZ portal and then research allowance application (ELSTER) at the tax office. The difference is not admissibility but effort and rejection risk.

How long does a DIY application take?+

Plan 40 to 80 internal working hours for a first application with one project: project delineation, the BSFZ project description, portal submission, research allowance application (ELSTER) and ongoing time tracking. BSFZ processing then takes about 3 months on average, and payout follows with the next tax assessment.

What is the most common mistake in DIY applications?+

The technical risk is not substantiated. Many DIY applications describe what was developed but not why the solution path was technically uncertain. That is exactly what the BSFZ reviews, alongside novelty and a systematic approach.

Can I bring in support later?+

Yes, at any time and in any phase: before submission for quality assurance, after a BSFZ rejection for an appeal or new application, or between stage 1 and stage 2 to optimize the assessment basis. Retroactive correction is possible as long as the tax assessment can still be amended.

Which is harder, the BSFZ application or the tax office application?+

The BSFZ application is by far the higher hurdle. You have to argue in free text why your project meets novelty, technical risk and a systematic approach, within the portal's character limits. The research allowance application (ELSTER) is a structured form: demanding when calculating the assessment basis, but manageable if time tracking and personnel costs are cleanly documented.

Is my existing ELSTER certificate enough for the BSFZ portal?+

Yes. The existing ELSTER organisation certificate you use for the tax return is sufficient. Paper filing is not possible.

Before you start: DIY application or support?

In a free first consultation we assess in 30 minutes whether your project suits a DIY application or where support makes the difference. Success-based, 70 % due only after payout.

Book a first consultation

Official sources

Read on

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