Do I have to choose between the Forschungszulage and EU funding?

No. The two instruments complement each other. The Forschungszulage is the reliable baseline, a legal entitlement without competition. EU programs add extra potential for larger, international projects.

What is the success rate for EU funding programs?

The programmes publish reliable rates per call, not as a standing figure; ask for the figure for your call. The Forschungszulage has no success rate in that sense: it is a legal entitlement, and every company that meets novelty, technical risk and a systematic approach receives it.

Do I need international partners for the Forschungszulage?

No. The Forschungszulage is a purely national instrument. You apply as a single company, without a consortium. Contract research at 70% eligibility also counts toward it (Section 3(4) FZulG).

Can I claim the Forschungszulage retroactively while waiting for an EU decision?

Yes. While EU applications take 9 to 18 months, the Forschungszulage can be claimed retroactively for already completed projects, up to four years back. That secures the national funding regardless of the EU outcome.

Does the Forschungszulage rule out EU funding?

No. The Forschungszulage and EU programs like Horizon Europe are combinable, but they may not fund the same costs twice (Section 7 FZulG). The Forschungszulage remains a legal entitlement without competition; EU programs award funding competitively and demand far more application effort.

Forschungszulage and EU funding: combinable, but never for the same costs

Q: Can I use the Forschungszulage and Horizon Europe at the same time?

Yes. The key rule: The same costs must not be funded twice (Section 7 FZulG). Claiming personnel costs through Horizon Europe means the same hours cannot also be claimed for the Forschungszulage. Solution: clearly allocate cost items to different projects or time periods.

Q: What happens if the same costs are accidentally claimed twice?

That violates Section 7 FZulG. Each cost item must be clearly assigned to one program in the tax office application, either the Forschungszulage or the EU project, never both. Clean cost separation per project prevents the error from the start.

The Forschungszulage does not rule out EU funding like Horizon Europe. What is forbidden is claiming the same costs twice (Section 7 FZulG).

Check your funding strategy for free Dossier

Forschungszulage: legal entitlement. Horizon Europe: competitive, with a selection decision.
Combinable if cost items stay separated (Section 7 FZulG).
All state aid combined capped at EUR 15 million per project (Section 4(3) FZulG).

Written by Max Nodes, Founder and Managing Director · 25 of 25 supported BSFZ applications certified (as of 09/2026) · Last updated: September 18, 2026 · Law as of: September 2026

At a glance

Tax allowance or EU programme

Match the project to the funding route

Figures and details

Forschungszulage: faster, no competition

EU funding adds to it, it does not replace it.

Key facts in brief

The Forschungszulage does not rule out EU funding, but never for the same costs: claiming personnel costs through Horizon Europe means the same hours cannot also be claimed for the Forschungszulage (Section 7 FZulG). The Forschungszulage is a legal entitlement without competition; EU programs like Horizon Europe or the EIC Accelerator award funding competitively. Both paths run in parallel once cost items stay clearly separated. All state aid for one project is capped at EUR 15 million combined, including the Forschungszulage (Section 4(3) FZulG).

The essentials on combining both

Legal entitlement: only the Forschungszulage, EU programs are competitive
Cumulation: combinable, but never for the same costs (Section 7 FZulG)
State aid cap: all state aid combined capped at EUR 15 million per project (Section 4(3) FZulG)
Retroactive filing: Forschungszulage up to four years back, EU funding only for future projects

Which ten criteria separate the Forschungszulage and Horizon Europe in detail?

The Forschungszulage wins on legal entitlement, speed and retroactive filing, Horizon Europe wins on the funding amount for international consortia.

Forschungszulage and Horizon Europe in ten criteria
Criterion	Forschungszulage	Horizon Europe
Access	yes Legal entitlement, no competition	no Competitive, with a selection decision
Applicant	yes Single company	no Consortium of at least three countries
Retroactive filing	yes Yes, up to four years	no No, future projects only
Funding type	Tax credit	Grant, non-repayable
Funding amount	Up to EUR 4.2 million per year	Project-dependent, often EUR 1 to 10 million
Payout	yes Even for loss-making companies, via the tax assessment	partly Grant after reports, no payment before project start
Timeline	yes 4 to 9 months to payout	9 to 18 months to the grant agreement
Effort	partly Moderate: BSFZ certificate plus tax office application	no Very high: consortium, 50 to 100 page proposal
Combinability	partly Combinable, except for the same costs (Section 7 FZulG)	partly Combinable if the cost base stays separated
Reporting	yes Low, just the tax office application	no Extensive: periodic reports and audits

What sets the Forschungszulage apart from EU programs like Horizon Europe?

The biggest difference is the legal entitlement: every R&D-active company receives the Forschungszulage, EU programs award funding competitively against applicants from several countries.

The ten-criteria table above covers access, applicant, retroactivity and funding amount in detail; the core point here: Horizon Europe requires a consortium of at least three countries and a selection decision, the Forschungszulage does not. The tax office application for the Forschungszulage runs independently of any EU application. Details on Horizon Europe, the EIC Accelerator and Eurostars/Eureka follow in the next section.

Which EU programs are worth considering alongside the Forschungszulage?

Three EU programs fit R&D-active companies in Germany: Horizon Europe, the EIC Accelerator and Eurostars/Eureka.

EU funding programs at a glance
Program	Access	Funding amount
Horizon Europe	consortium of at least three countries, thematic call	project-dependent, often EUR 1 to 10 million, non-repayable
EIC Accelerator	single application possible, extremely competitive	up to EUR 2.5 million grant plus up to EUR 10 million equity
Eurostars / Eureka	bilateral or multilateral project with an international partner	funding rate set nationally, in Germany via BMBF

For a first program without delay, the Forschungszulage remains the fastest entry point. An EU program adds to it, it does not replace it.

Can the Forschungszulage and EU funding run at the same time?

Yes, but never for the same costs: Section 7 FZulG forbids double-funding the same costs, not the combination itself.

Forschungszulage and EU funding compared
Criterion	Forschungszulage	EU Funding
Legal entitlement	yes Every R&D-active company, no competition	no Competitive for Horizon Europe
Application timing	yes Retroactive up to four years	no Only before project start, no retroactive filing
Effort	partly Moderate: BSFZ certificate plus tax office application	no Very high: consortium, 50 to 100 page proposal
Payout	yes Even for loss-making companies, via the tax assessment	partly Grant after reports, no payment before project start
Cumulation	partly Combinable, except for the same costs (Section 7 FZulG)	partly Combinable if the cost base stays separated

Example: the same research, separated cost items
Cost item	Forschungszulage	Horizon project
Personnel costs, Team A, process innovation	claimed through the Forschungszulage	not in the consortium budget
Personnel costs, Team B, consortium project	not claimed	claimed through Horizon Europe
Material costs, external test runs	70% eligible as contract research (Section 3(4) FZulG)	not part of the EU application

Each cost item must be assigned to exactly one program in the tax office application, either the Forschungszulage or the EU project, never both. That is the boundary set by Section 7 FZulG.

Section 9 FZulG ties the Forschungszulage to the European state aid rules of the General Block Exemption Regulation. Across all state aid for one project, a combined cap of EUR 15 million applies, including the Forschungszulage (Section 4(3) FZulG).

Which program fits which company size?

The answer depends on size and resources: smaller companies start with the Forschungszulage, larger ones combine both paths.

Recommendation by company size
Company size	Recommendation
SME / start-up	Forschungszulage first, fast and without a consortium. Consider the EIC Accelerator as a supplement.
Mid-sized companies	Both paths in parallel: Forschungszulage as the baseline, Horizon Europe applications for larger partner projects.
Large corporations	Forschungszulage for ongoing R&D, EU programs for individual strategic projects.

When is an EU program the better choice than the Forschungszulage?

Three situations where Horizon Europe, the EIC Accelerator or Eurostars/Eureka bring more than the Forschungszulage alone.

An international consortium already exists: A project with partners from at least three EU countries fits Horizon Europe, which funds exactly these consortia, project-dependent and often EUR 1 to 10 million.
Highly innovative scale-up with a high capital need: A project with international scaling potential fits the EIC Accelerator, which combines up to EUR 2.5 million grant with up to EUR 10 million equity, well above the maximum Forschungszulage of EUR 4.2 million per year.
Bilateral project with one international partner: A project with exactly one foreign partner, without a full EU consortium, fits Eurostars/Eureka, whose funding rate in Germany is set nationally through the BMBF.

Without an international consortium, a scalable edge or a foreign partner, the case for Horizon Europe, the EIC Accelerator and Eurostars/Eureka falls away three times over; for a single German company the Forschungszulage remains the legal entitlement, and it also works retroactively.

Combine the Forschungszulage and EU funding without double-funding

In the first consultation we check which costs run through the Forschungszulage and which stay open for an EU program. You pay only once the allowance is approved.

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Official sources

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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