All funding programs

German R&D tax credit

Steuerliche Forschungszulage

35% for KMU (25% general) of eligible R&D costs. Owner's own R&D work in a sole proprietorship counts at €100/hour (from 2026, was €70), max 40 h/week. For projects started from 2026 a 20% overhead flat rate is added; the annual cap is €12M. Paid as a tax credit; refunded even with no tax owed.. Provided by BMF / Bescheinigungsstelle Forschungszulage (BSFZ) + Finanzamt.

Germany (nationwide)Tax creditEquity-free
Official page Check my fit across all programs

Key facts

Amount
35% for KMU (25% general) of eligible R&D costs. Owner's own R&D work in a sole proprietorship counts at €100/hour (from 2026, was €70), max 40 h/week. For projects started from 2026 a 20% overhead flat rate is added; the annual cap is €12M. Paid as a tax credit; refunded even with no tax owed.
Duration
Not fixed
Type
Tax credit
Who receives it
Company
Equity
Equity-free
Repayable
No
Stages
Prototype, Pre-revenue, Revenue, Incorporated
Solo founders
Yes
Full-time required
No
Company required
Yes
University link required
No
Application languages
DE
Location
Taxable in Germany

Who can apply

  • Every taxpayer with business income (any size/legal form, incl. Einzelunternehmer) has a legal claim
  • Project must qualify as R&D (BSFZ certificate): new, with technical risk, planned
  • BSFZ description in German only, max 4,000 characters, plus a mandatory tabular work plan
  • Certificate possible for planned, ongoing or finished projects (work started after 1 Jan 2020)
  • Can apply up to 4 years retroactively; no fixed deadline

What usually blocks applicants

  • Routine software work isn't R&D: configuring or porting existing software, testing, debugging, docs. You must show technical risk; GDPR concerns don't count
  • Market research and feasibility studies are not R&D
  • Needs an ELSTER organisation certificate
  • Must document hours carefully

What the official documents say

  • Project description: max 4,000 characters in total (p. 2)
  • Certificate can be requested for planned, ongoing or completed projects (p. 4)
  • All texts must be in German (p. 8)
  • A work plan is mandatory for every project (p. 10)
  • Own work counts at EUR 100 per hour from 2026, max 40 hours per week per person (p. 22)
  • Projects started from 2026: overhead and material costs as a 20% flat rate (p. 23)
Official PDF (DE): Arbeitshilfe zum Antrag auf Erteilung einer Bescheinigung nach § 6 Forschungszulagengesetz (Leitfaden zur Antragstellung), version 2026-02-10
  • Three tests: novelty vs. state of the art, technical risk, planned and defined project (p. 4)
  • Market research and customer surveys before the project are not R&D (p. 10)
  • Not R&D on its own: configuring or porting existing software, routine dev, testing, debugging (p. 18)
  • Data protection (GDPR) concerns do not count as technical risk (p. 18)
Official PDF (DE): Wie prüft die BSFZ? (Prüfleitfaden), version 2025-10

Why founders miss it

Solo founders assume it's for corporates. Since 2026 your own unpaid R&D hours count at €100/h, so a bootstrapped solo dev can get cash back for work already done (retroactive 4 years). It's also the official fallback while ZIM is paused.

Deadline and timing

No deadline; certificate any time, up to 4 years retroactive

Frequently asked

How much does German R&D tax credit pay?

35% for KMU (25% general) of eligible R&D costs. Owner's own R&D work in a sole proprietorship counts at €100/hour (from 2026, was €70), max 40 h/week. For projects started from 2026 a 20% overhead flat rate is added; the annual cap is €12M. Paid as a tax credit; refunded even with no tax owed.

Who can apply for German R&D tax credit?

Every taxpayer with business income (any size/legal form, incl. Einzelunternehmer) has a legal claim Project must qualify as R&D (BSFZ certificate): new, with technical risk, planned BSFZ description in German only, max 4,000 characters, plus a mandatory tabular work plan Certificate possible for planned, ongoing or finished projects (work started after 1 Jan 2020) Can apply up to 4 years retroactively; no fixed deadline

When is the German R&D tax credit deadline?

No deadline; certificate any time, up to 4 years retroactive

Where do I apply for German R&D tax credit?

On the official page: https://www.bescheinigung-forschungszulage.de/. Applications are accepted in DE.

Do I have to pay back German R&D tax credit or give up equity?

No, it does not have to be paid back. It takes no equity.

Can solo founders apply for German R&D tax credit?

Yes, solo founders can apply.

Sources and verification

Checked on 8 October 2026. Facts read directly from the official source. This page is orientation, not an eligibility decision.

More funding in Germany (nationwide)

All startup funding in Germany (nationwide)