GermanyChecked 2026-08-20
What is the German research allowance?
The Forschungszulage is Germany's research allowance, claimed through the tax system rather than by competitive application.
| Rate and cap | 35% for small and medium companies, on an assessment base of up to 12 million euro a year from 2026, giving a maximum of 4.2 million euro source |
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What it means in practice
Its main advantage is that it is not competitive. There is no committee and no funding round: if the work qualifies and the documentation holds, the money is yours. From 2026 a 20% overhead surcharge applies to in-house research and the base rose from 10 to 12 million euro. It reaches research rather than production.
Who it applies to
Companies taxed in Germany carrying out qualifying research and development.
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