R&D combined tax deduction
An extra tax deduction on R&D wages and bought-in R&D services. Typical amount: extra deductions up to €1M/yr (50% general + 45% incremental).
Facts last verified 23.7.2026
An extra tax deduction on R&D wages and bought-in R&D services. It is not state aid, so it uses no de minimis headroom and can be claimed alongside grants.
Key facts
- Provider: Tax Administration
- Type: Tax incentive
- Typical amount: extra deductions up to €1M/yr
- Rate / terms: 50% general + 45% incremental
- Legal basis: Not state aid
- Who it is for: Micro to large companies · R&D, digitalisation
How to apply
Tax incentives are claimed in taxation rather than applied for. The combined R&D deduction is made in the company's tax return based on qualifying research and development costs — no project application, no funding decision to wait for.
The work happens in documentation: define what qualifies as R&D, keep cost tracking separated from the start of the tax year, and record the basis for each claimed cost. Confirm the current rules and rates from the Tax Administration, and check how the deduction interacts with direct support received for the same costs.
Frequently asked questions
How much funding does R&D combined tax deduction provide?
Typical amount: extra deductions up to €1M/yr. Support level / terms: 50% general + 45% incremental.
Who can apply for R&D combined tax deduction?
Provider: Tax Administration. Company size: micro, small, medium, midcap, large. Typical use: R&D, digitalisation.
On what legal basis is R&D combined tax deduction granted?
Not state aid.
Indicative screening information, not advice. Amounts and rules change, so confirm the current terms and eligibility with the provider before you rely on them.
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