Forschungszulage · Germany’s research allowance
Germany gives back up to 42 % of what research costs you.
It’s your right if you pay tax in Germany. But the forms are only in German, so most international teams never ask for it. We do it for you, in English. You only pay us if you get the money.
- 42 %
- of your research costs back, at most
- § 4 (1), § 3 (3b)
- €0 profit?
- Still works – the money is paid out
- § 10 (1)
- €42
- for every hour you research yourself
- § 3 (3)
- 4 years
- back – 2022 runs out on 31 Dec 2026
- § 169 AO
The idea in one minute
Three steps, no jargon
- 1You try something new
You build or research something where nobody knows yet if it will work – a new algorithm, a new material, a new method.
§ 2 FZulG
- 2It costs money
Mostly people’s time: salaries, your own hours, maybe a lab or university you pay to help.
§ 3 FZulG
- 3Germany pays part of it back
Up to 42 % of those costs, through the tax office. Even if you make no profit – then you simply get it paid out.
§ 4, § 10 FZulG
Example: two engineers earn €80000 each and spend half their time on a new idea. That’s about €96000 of research cost a year with social insurance. If it is a small company and the project started in 2026 or later, it gets back about €40000 – every year the project runs.
Calculator
How much could I get?
Fill in what you spent on research, year by year. The result updates as you type. Rules as of 15 Oct 2026.
Who
Who can get it
Anyone who earns money in Germany through a business or by working for themselves.
- ✓ Startups and companies – A GmbH, UG or AG in Germany. Size, industry and where the founders come from don’t matter.
- ✓ Freelancers and founders – If you work for yourself, every hour you spend on research counts as €100.
- ✓ Foreign companies – If you have a branch in Germany, the research done there counts.
- ✓ Partnerships – A GbR, OHG or KG can claim too.
§ 1 FZulG
Who can’t
- ✗ You as an employee – your employer claims for your salary, not you.
- ✗ Universities and charities – they pay no tax. But a company that pays them for research can claim 70 % of that bill.
- ✗ Companies that are insolvent or in serious financial trouble.
- ✗ Doing research for someone else – then your client claims, not you.
§ 1, § 9 (2) FZulG
Researchers & postdocs
No professorship? Get paid for your own research.
If you work for yourself in Germany, every hour on your own research project is worth €42 to you – even before you earn anything from it.
Full time, one year, project started 2026 or later
| Your research hours (max. 40 a week) | 2080 h |
| Each hour counts as €100 | €208000 |
| Plus 20 % for overheads | €249600 |
| You get 35 % of that | €87360 |
| That is, per hour | €42 |
Half time works too: 20 hours a week give about €43680 a year. And you don’t pay income tax on it.
Try it – pick “Sole proprietor”What you need
- Work for yourself. Register as a freelancer in Germany. As an employee you can’t claim for yourself. § 1 FZulG
- Have a real research project. Something new and uncertain, with a plan. A federal office checks it first. § 2, § 6 FZulG
- Want to earn from it one day. Licences, a product, consulting. Pure hobby research doesn’t count. § 2 (1) EStG
- Wait for the money. It comes once a year, after the year is over – not every month. § 5, § 10 FZulG
- Don’t count twice. Hours already paid by a university job or grant don’t count again. § 7 (2) FZulG
- Check your visa. From outside the EU, your residence permit must allow self-employment. § 21 AufenthG
- Or start a company. Your own GmbH or UG can employ you and get 35 % of your salary back. § 3 (1) FZulG
What counts
Which costs count
Only costs for real research – trying to find out something that isn’t known yet.
- Salaries
- What you pay the people working on the project, plus your share of their social insurance.
- § 3 (1) FZulG
- Your own time
- If you work for yourself: €100 for every hour (from 2026).
- § 3 (3) FZulG
- Paying others
- 70 % of what you pay a university, institute or company in the EU to research for you.
- § 3 (4) FZulG
- Equipment
- Machines or computers used only for the project, spread over their lifetime.
- § 3 (3a) FZulG
- Overheads
- Rent, electricity and the like: a flat 20 % on top – for projects started in 2026 or later.
- § 3 (3b) FZulG
How it works
Four steps. We do the German one.
- 01We talk – in English
30 minutes. You tell us what you’re building and what’s hard about it. We tell you honestly if it fits.
- 02We write it – in German
The application must be in German. We write it, you read an English version and say OK.
- 03The office says yes
A federal office confirms it’s real research. It’s free and usually takes up to three months.
- 04You get the money
After the year ends, your tax adviser sends the claim. It lowers your tax – and anything left over is paid to you.
What it costs you
No money for you, no money for us.
You pay nothing up front. We only get a share once the money is granted – the share is agreed in writing before we start.
FAQ
Questions people ask
Do I need to speak German?+
No. The offices only work in German – that’s the part we do for you. You talk to us in English.
We make no profit yet. Does this help us?+
Yes. If you pay less tax than the allowance, the rest is paid out to you in cash.
Can I claim for past years?+
Yes, up to four years back. Costs from 2022 can be claimed until 31 December 2026.
What if the research failed?+
It still counts. Not knowing if it will work is exactly what research is.
Is building software research?+
Only when you solve a technical problem nobody has solved yet. Normal app development, fixing bugs or launching a product doesn’t count.
Do I pay tax on the money?+
If you work for yourself: no, it isn’t counted as income. For companies it doesn’t increase the tax either.
Can I combine it with other grants?+
Yes – just not for the same costs twice.
Is this tax advice?+
No. We write the research application. Your tax adviser sends the claim to the tax office.