Germany Boosts R&D Subsidies: SMEs Can Claim Retroactively Since 2021
German companies can now claim research subsidies retroactively for expenses incurred since 2021, with a deadline at the end of 2025. This follows an increase in funding for small and medium-sized enterprises (SMEs) and a broader scope for eligible projects.
The Forschungszulagengesetz (FZulG) allows nearly all companies subject to taxation in Germany to claim the research subsidy (Forschungszuschuss) for eligible expenses. This includes SMEs, corporations, partnerships, and start-ups. The subsidy supports in-house research, external research orders, self-performed services, and investment costs related to R&D projects.
The Horizon Europe programme provides significant funds for international R&D cooperation. Additionally, KMU-innovativ supports the industrial research and development of transformative technologies for long-term economic growth. ZIM funding supports the development of new or significantly improved products, processes, or technical services.
Since March 2024, the research allowance has seen increased funding. For SMEs, the maximum funding has risen from 1 million EUR to 3.5 million EUR per year. They can now apply for an increase in research allowance from 25% to 35% of eligible project costs. Companies can apply for the subsidy retroactively, with a submission deadline at the end of 2025.
The increased funding and broader eligibility criteria for research subsidies in Germany aim to boost innovation and R&D activities. Companies can now claim subsidies for expenses incurred since 2021, with a four-year retroactive claim period. Hentschel Grant Consulting specializes in grants for research and development and supports companies in the application process.
