The research premium and individual project grants are the two most important funding instruments for innovative companies in Austria. We compare both options and show how they can be optimally combined.
In a Nutshell
- The research premium offers a 14% tax credit on R&D costs - open to all industries and claimable retroactively for up to 4 years
- Project grant (e.g. FFG, aws) offers higher funding rates (30-70%) but requires a competitive selection process
- Both instruments can be combined to optimise the overall funding rate
Innovative companies in Austria have several ways to reduce their research and development costs. The two most important instruments are the research premium and individual project grants (e.g. through FFG or aws). But what are the differences between these two types of funding and which one is the best fit?
The research premium is a tax credit that can be applied for annually at the tax office.
Key points:
Advantage: Particularly attractive for companies that conduct ongoing research, as the funding can be claimed every year.
In addition to the research premium, Austria offers numerous project grant programmes (e.g. FFG Basisprogramm, aws Seedfinancing). A complete overview including AI matching can be found in our grant search.
Key points:
Advantage: Particularly interesting for individual projects with clear development goals, often in early company phases.
| Feature | Research Premium | Project Grant |
|---|---|---|
| Type of funding | Tax credit | Grant or loan |
| Funding level | 14% of recognised R&D costs | 30-70% (depending on programme) |
| Application | Annually via FinanzOnline | Before project start, directly at the funding agency |
| Thematic focus | Open to all industries & technologies | Programme-specific (e.g. digitalisation, climate, deep tech) |
| Legal entitlement | Yes, if requirements are met | No, selection process |
| Retroactive claims | Yes, up to 4 years | No |
| Complexity | High (but StartMatch makes it easier than ever) | Depends on the funding amount, high complexity for large sums |
| Ideal for | Ongoing R&D activities, continuous research | Individual projects, innovative ventures with clear goals |
The research premium and project grant are not mutually exclusive. Funded project costs can later also be considered for the research premium, but only for the self-funded portion (double funding is excluded).
Example:
Tip: For every new venture, first check whether a suitable funding programme exists and additionally use the research premium as a baseline funding instrument.
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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