Everything companies need to know about the Austrian Research Premium - from the basics to eligible costs and common mistakes.
In a Nutshell
- The research premium reimburses 14% of qualifying R&D expenditures as a tax credit - with no upper limit
- All companies taxable in Austria are eligible, regardless of size or industry
- The premium is tax-free and is paid out even in case of losses
- Claims can be filed retroactively for up to four years
The research premium is a tax credit that allows companies in Austria to retroactively claim funding for their research and development activities. It amounts to 14% of eligible costs and is paid out directly by the tax office to the company's tax account.
Unlike traditional grant programs with formal application procedures and jury evaluations, the research premium works as a direct tax bonus - making it one of the most straightforward and impactful funding instruments in Austria.
The premium amounts to 14% of eligible costs and has no upper limit. The more a company invests in research, the more it gets back.
An example: With 4 R&D employees earning a combined salary of €240,000, the research premium from personnel costs alone amounts to approximately €33,600 per year. Material costs, investments, and other expenditures increase the assessment base further.
Any company with a registered office or permanent establishment in Austria - from sole proprietorships to international corporations. Even startups that are not yet profitable can receive the premium, as it is paid out regardless of tax liability. If the credit exceeds the actual tax owed, the difference is paid out.
Eligible projects fall into one of three categories:
Around 80% of all applications fall into the experimental development category.
Examples of eligible projects:
Pure routine adjustments, simple bug fixes, or the use of standard software without technological advancement are not eligible. There must always be a technological or scientific uncertainty.
The research premium covers many types of costs, including:
The application process involves two steps:
Step 1: FFG Expert Opinion
First, an expert opinion must be requested from the FFG (Austrian Research Promotion Agency). This opinion confirms that the described activities qualify as research and development. It includes a project description of up to 3,000 characters and is submitted electronically via the FFG eCall portal. The expert opinion serves as the basis for the tax office to process the payment.
Step 2: Form E108c via FinanzOnline
In the second step, the research premium is claimed via Form E108c at the responsible tax office. This form summarizes all R&D costs and contract research. Without the E108c, no payment is made - even with a positive FFG expert opinion. All figures must match exactly, otherwise delays may occur.
The research premium can be claimed retroactively for up to four years. Processing typically takes a few weeks.
The research premium is tax-free and is paid out as a direct credit from the tax office to the company's tax account. It does not increase taxable income.
Companies without profits can also apply for the research premium. The credit on the tax account can be paid out after receipt - making the premium attractive for startups and companies in loss phases as well.
Combination with other grants: Yes, this is possible. The other grant simply needs to be deducted from the cost base. The FFG expert opinion has a dedicated field for this called "Tax-free grants from public funds". This keeps everything transparent and correct.
Contract research: Contract research can also be claimed for the research premium. The key requirement is that the contractor is based in the EU or EEA and the research services are clearly documented. This allows even companies without their own R&D department to benefit from the research premium.
Many applications fail not because of the project content, but because of the details:
Careful documentation saves time and avoids follow-up queries.
A negative decision is far from the end. There are several ways to still obtain the research premium:
File an appeal: An appeal can be filed against a negative decision within the specified deadline (usually one month). While only 3,000 characters are available for the initial application, the appeal allows up to 60,000 characters plus graphics, sketches, and other attachments. A large proportion of appeals for genuinely innovative projects are ultimately successful.
Check for partial payment: If the research premium was only rejected for individual projects or project parts, it is possible to apply for a partial payment for the positively assessed parts.
The most common reasons for rejection are an unclear description of the research activities and failure to meet the five Frascati criteria: novelty, creative activity, uncertainty, systematic approach, and reproducibility.
The research premium is one of Austria's most attractive funding instruments. StartMatch supports companies throughout the entire application process: from identifying eligible projects to creating compliant application texts and calculating the assessment base.
Claim back your R&D expenses from the last four years - quickly, stress-free, and with professional support. Book a free consultation.
The research premium is often audited only years later. Knowing the key audit points and maintaining clean documentation ensures the 14% credit stays permanent.
Not everything that is technologically sophisticated counts as research. The five Frascati criteria determine whether a project qualifies for the research premium.
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