Get up to 35% of your R&D costs back from the tax office.
We support your company in claiming the German R&D tax credit (FZulG) — efficiently, legally compliant, and without bureaucratic hassle.
Why many companies leave money on the table
Unknown funding opportunity
Most eligible companies are not even aware that they qualify for the R&D tax credit.
Complex application process
The FZulG procedure is a two-stage process requiring both technical and fiscal expertise.
Lack of resources
SMEs in particular rarely have the internal capacity to prepare the application correctly and on time.
Don’t leave money with the tax office.
In a free consultation we clarify whether – and to what extent – your company is entitled to the R&D tax credit.
What is the Forschungszulage – and who pays it?
The Forschungszulage is Germany’s R&D tax incentive. Its legal basis is the Research Allowance Act (Forschungszulagengesetz, FZulG), in force since 1 January 2020. Companies of any size and sector that invest in research and development (R&D) get part of their eligible R&D costs back from the state – directly via their tax office.
The state pays – via your tax office
The allowance is assessed by the tax office and offset against your next income or corporate tax. If it exceeds your tax liability, the remainder is paid out.
A legal entitlement, not a funding pot
No competition for limited budgets, no calls, no deadlines: if you meet the requirements, you have a statutory right to the allowance.
Even without profit
The allowance works even when you make a loss or pay no tax – ideal for start-ups and growing companies in an investment phase.
Tax-free & retroactive
The allowance itself is not taxable. R&D costs can be claimed retroactively for up to 4 years.
Numbers that speak for themselves
funding rate for SMEs / large companies
maximum assessment basis per year (from 2026)
maximum R&D allowance per year for SMEs (from 2026)
retroactive: R&D costs can be claimed afterwards
How much R&D tax credit are you entitled to?
We assess your funding potential together with you – free of charge and without obligation.
Who is eligible and which criteria apply?
Eligible are
- All companies subject to tax in Germany – regardless of size, legal form or sector
- Companies with income from trade or business, agriculture and forestry, or self-employment
- Sole proprietors and co-entrepreneurs (e.g. partners of a GbR) for their own R&D work
- SMEs under the EU definition (fewer than 250 employees and max. €50m turnover or €43m balance sheet total) receive the increased rate of 35%
Your project must qualify as R&D under the law
Basic research, industrial research and experimental development are eligible. The certification body (BSFZ) assesses five criteria:
- 1
Novel
The project aims at new findings and goes beyond the state of the art.
- 2
Creative
It is based on original, non-obvious concepts and hypotheses.
- 3
Uncertain
There is scientific or technical uncertainty – the outcome is open at the start.
- 4
Systematic
The project follows a plan with goals, work steps and a budget.
- 5
Transferable
The results are reproducible and can be documented.
Typically not eligible
- Routine enhancements, maintenance or updates
- Pure design or layout changes
- Market research, sales and marketing
- Standardised quality control and routine testing
- Adapting known solutions to individual customers without technical uncertainty
Which costs are funded – and how much do you get?
The allowance is calculated from your eligible R&D costs (assessment basis) multiplied by the funding rate.
Personnel costs
Salaries of your employees for the time they work on the R&D project.
Own work
Sole proprietors and co-entrepreneurs: up to €100 per hour, max. 40 hours per week.
Contract research
70% of the costs for commissioned R&D service providers in the EU/EEA.
Depreciation
On movable fixed assets required for the R&D project.
Overhead lump sum
An additional flat 20% on eligible costs, without individual proof – for projects started after 31 Dec 2025.
Rates & caps (from 2026)
- 35%
- Funding rate SMEs
- 25%
- Funding rate large companies
- €12m
- Max. assessment basis per year
- €4.2m
- Max. allowance per year (SMEs)
Simplified example
- 2 engineers, €80,000 salary each, 50% of their time on the R&D project
- €80,000
- + 20% overhead lump sum (project start 2026)
- €16,000
- = Assessment basis
- €96,000
Illustrative example. The actual amount depends on your specific costs and the certification.
Your R&D costs, your allowance – let’s do the maths.
We review your projects and costs and show you what amount is realistic.
Three steps to your R&D tax credit
Analysis
We review your R&D activities and identify all eligible projects.
Documentation
We prepare the technical description and all required documents for the certification body (BSFZ).
Submission
We guide the entire submission process — from BSFZ certification to tax filing.
What you need to observe
The Forschungszulage is a two-stage procedure. To make sure the allowance is paid, a few obligations apply:
BSFZ certificate is mandatory
No allowance without a positive BSFZ certificate. The application is free of charge and can be filed before, during or after the project. The certificate is binding on the tax office.
Tax office claim after year-end
The allowance is claimed electronically via ELSTER at the competent tax office after the end of the financial year – with the certificate and the costs incurred.
Complete documentation
Traceable time records per employee and project as well as evidence for contract research and depreciation must be kept and retained.
No double funding
Costs already financed by other state aid (e.g. grants) are not eligible again. Combining programmes for different costs is possible.
Mind the deadlines
R&D costs can be claimed retroactively for up to 4 years. Projects started after 1 January 2020 are eligible.
Tax office review
The tax office reviews the costs claimed – including in later tax audits. Clean records protect against repayment claims.
Sounds like a lot of work? We take care of it.
From the BSFZ certificate to the tax office claim – we guide you through the entire procedure.
In cooperation with Nordic Innovators
Business Innovator offers R&D tax consulting as a certified partner of Nordic Innovators. Nordic Innovators is a specialised service provider for R&D tax credits in Europe with extensive experience.
Questions & answers on the R&D tax credit
General information on the Forschungszulage, as of October 2026. It does not replace individual tax advice.
Let's discuss your funding opportunities
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