What is the Forschungszulage?
Forschungszulage (FZulG) is a German grant scheme that provides tax incentives for companies investing in research and development (R&D). Its aim is to encourage companies to increase their investment in R&D and strengthen innovation in Germany.
What types of projects are eligible?
Almost all innovation projects are eligible under the research grant scheme; including the development of systems, technologies, and materials, as well as software, pharmaceuticals, and treatment methods.
The scheme supports the full range of corporate research and development activities, from basic research and industrial research to experimental development. The transition to competitive product development is seamless, and many companies are often unaware that their development work qualifies for funding.
Who can apply?
All tax-paying German companies are eligible to apply, regardless of their size. This includes both SMEs and large enterprises.
Growth Opportunities Act: R&D investments become even more attractive
The Growth Opportunities Act, effective from 28 March 2024, makes the Forschungszulage even more appealing for German companies. With higher funding rates, a broader scope, and simplified application procedures, the scheme has become more effective in boosting the competitiveness of the German economy. Companies investing in sustainable innovations may benefit from additional advantages. The grant scheme continues to be a key pillar for securing the future of German business.
Forschungszulage in 2025
Innovative German companies can once again apply for Forschungszulage in 2025 and receive up to € 3.5 million in tax relief. Funding rates range from 25% to 35% for in-house R&D employees and 17.5% to 24.5% for outsourced R&D services.
Haven’t applied for Forschungszulage in recent years but have carried out innovation projects? Good news: it’s still possible to apply retroactively for the years 2021 to 2024.
The Application Procedure
The application proces of Forschungszulage grant involves a two-stage process:
- The Bescheinigungsstelle Forschungszulage (BSFZ) assesses the content of the R&D project;
- A financial review is conducted, confirming the eligible R&D expenses.
The BSFZ approval process can take considerable time and typically includes detailed questions about the R&D projects. Once the BSFZ issues a positive decision, which grants a legal entitlement to funding, the applicant must then submit this to their local tax office. Further questions may be raised, and the final confirmation of funding can also take time.
Get in contact with a Forschungzulage specialist
Want to ensure your Forschungszulage application is successful? Our team of specialists are here to help. With our extensive experience, we prepare applications that have the best chances of approval and manage the entire application process to ensure all steps are completed on time.
A successful application requires a compelling project description. With over 30 years of experience and a team of professionals with relevant industry backgrounds, we prepare applications with the highest chances of approval and takes care of the entire submission process. Curious about your grant possibilities? Get in contact with a Forschungszulage specialist!
