The Forschungsprämie: Retroactive Funding for Your R&D Projects
Over 9,000 projects benefit from Austria’s Forschungsprämie each year, receiving a total of more than €1.1 billion. It is one of the country’s largest funding instruments, yet many companies do not take full advantage of it.
The big advantage: You can apply for it retroactively for up to 4 years—without having to submit project plans in advance. In this article, you’ll learn how to get the premium, what requirements apply, and what you need to watch out for.
What is the Forschungsprämie?
The Forschungsprämie is a tax credit of 14% on your company’s R&D expenses. It can be applied for annually via the tax office—both for in-house R&D projects and for commissioned research work.
📌 Key features at a glance
| Feature | Description |
|---|---|
| Funding amount | 14% of eligible R&D costs |
| Submission | Via FinanzOnline, once per year |
| Retroactive | Can be applied for up to 4 years retroactively |
| Scope | In-house research & commissioned research |
What is funded?
The Forschungsprämie covers a wide range of costs, including:
- Salaries and wages of R&D employees
- Material costs, infrastructure, equipment
- Overhead and financing costs if used for research purposes
- Imputed entrepreneur’s salary (since 2024: €50 per R&D hour, max. €86,000 annually)
Whether it’s traditional product development, software projects, environmental technology, or new materials—the decisive factor is that you aim to generate new knowledge through systematic research.
Requirements for the Forschungsprämie
To ensure your application is successful, the following conditions must be met:
- Systematic, scientific approach
- Objective: New knowledge or applications
- Commissioned research: The client must not be economically linked to the contractor
- Contractor must be based in the EU/EEA
The FFG expert opinion
If you apply for the premium for your own projects, you need an expert opinion from the FFG (Forschungsförderungsgesellschaft). This:
- Is applied for online via FinanzOnline
- Is free of charge
- Is sent directly to the tax office
- Only reviews the content description of the research, not the costs
📝 Important: A positive FFG opinion is required but is not a guarantee for payment—the final decision rests with the Ministry of Finance.
Deadlines: Don’t wait too long
The Forschungsprämie can be applied for up to four years retroactively. Example:
For the 2021 financial year, you can still submit an application until the end of 2025.
➡️ Still, it is advisable to take action soon after the end of the financial year, so that documents, time records, and internal documentation are still easily accessible.
The catch: Documentation effort
Even though the Forschungsprämie sounds straightforward, it requires one thing: good preparation.
You must document, among other things:
- Which employees worked on which projects
- Their qualifications, activities, and time allocation
- Cost breakdown per project
- Project objectives, milestones, and R&D character
📌 Tip: Close coordination with accounting, project management, and time tracking will save you a lot of effort in the application process.
Our conclusion
No other funding in Austria can be used so flexibly and retroactively. For startups, SMEs, and innovation-driven companies, the premium is a real lever for reducing R&D costs.
