.png)
.jpg)
Research grant for startups
8/11/25, 10:00 AM
The research premium is a key funding instrument that is also important for startups.
In addition to a research premium for in-house R&D, a contract research premium of 14% can also be claimed for commissioned R&D.
Quick Facts about the Research Premium
A tax-free research premium of 14% can be claimed for qualified R&D activities. The aim of the R&D activity must be to expand the body of knowledge and develop new applications of this knowledge.
A research premium can be claimed for the following qualified research expenses, provided they are attributable to R&D activities:
Wages and salaries for employees in R&D as well as remuneration for R&D employees working outside of an employment relationship (Note: For research services provided by sole proprietors, partners in a partnership or shareholders of a corporation working without remuneration, a notional entrepreneurial wage of €45 for each demonstrably performed hour of work in the R&D sector can be taken into account, max. €77,400 per person and financial year)
Direct expenditures and direct investments
Financing expenses
Overhead costs
Research premiums can be applied for for one calendar year at a time, and the application deadline is four years after the end of the fiscal year. Furthermore, the research premium can be claimed regardless of the startup's financial performance (even in loss-making years).
With a view to ensuring a certain degree of predictability, the research premium is to be secured in its current form as an important location factor, according to the current government program.
In-house research vs. contract research
A research premium can be claimed for both in-house research and contract research, with the following differences:
In-house research | Contract research | |
definition | R&D activities are carried out by the company itself. | R&D activities are outsourced to an external company or research institution. |
Proceedings | Applying for an FFG expert opinion and submitting a research premium application as an attachment to the tax return is required. | It is not necessary to request an FFG expert opinion; submitting a research premium application as an attachment to the tax return is sufficient. |
Claim | to utilize the research company | The client must inform the contractor by the end of the financial year to what extent they are claiming the contract research premium (the contractor can then only apply for a research premium for in-house research for the part of the expenses not covered by the notification). |
Domestic criterion | Research activities must take place in a domestic company or establishment. | The client must have a domestic business or branch and must commission the contractor (based in the EU/EEA) from that business. |
Basis of assessment | No height limit | The assessment basis is a maximum of EUR 1 million per financial year. |
Conclusion
R&D activities are typically very expensive. Since securing funding is one of the biggest challenges for startups, it is highly recommended to analyze the requirements for claiming the research premium in detail. Ultimately, the research premium can generate considerable funding!
Authors:
Christoph Puchner , Partner and Tax Advisor & David Gloser , Partner, Tax Advisor and Auditor of ECOVIS Austria , one of Austria's leading tax advisors in the startup sector.
