ZIM funding is a non-repayable grant, not a loan and not an equity stake. How much you get depends on three levers: the funding rate, the maximum eligible costs and the project type. All three were raised by the ZIM guideline that took effect on 1 January 2025.[1]
How much is ZIM funding?
Depending on the project type and the company's characteristics, the funding rate is between 25 and 45 per cent of eligible costs. Cooperation projects add five percentage points. In international cooperations through IraSME, overall rates of 55 to 60 per cent are achievable.[1]
The distinction between funding rate and funding amount matters. The rate is the percentage. The amount is the rate multiplied by the recognised eligible costs, and those costs are capped.
Funding rates by company size
For single projects, ZIM differentiates by company size and location:[1]
- Small companies in structurally weak regions: 45 per cent
- Small companies in other regions: 35 per cent
- Medium-sized companies: typically 35 per cent
- Larger companies with up to 1,000 employees: 25 per cent
ZIM uses the extended SME definition: companies with up to 1,000 employees can apply, not just the EU SME limit of 249. Larger mid-sized firms accordingly get the lower rate of 25 per cent.
Cost caps by project type
The reform raised the maximum eligible costs per project type as follows:[1]
- Single project: up to €690,000 in eligible costs
- Cooperation project, per company: up to €560,000
- Cooperation project in total: a maximum of €3,000,000
- Research institution in a cooperation project: up to €280,000
- National innovation network: up to €490,000
- International innovation network: up to €600,000
That produces concrete maximum amounts. A single project by a small company in a structurally weak area: €690,000 × 45% = €310,500 in grant. The same project for a medium-sized company: €690,000 × 35% = €241,500. Raising the cap from the previous €550,000 essentially compensates for the staff cost increases between 2021 and 2024.
The cooperation bonus and IraSME
In cooperation projects between at least two companies, or between a company and a research institution, the funding rate rises by five percentage points. A small company in a structurally weak region therefore gets 50 per cent on its costs, up to the cap of €560,000 per partner.[1]
Research institutions acting as cooperation partners receive 100 per cent of their non-economic costs, up to the cap of €280,000. That makes universities and non-university institutes attractive for consortia, because their own contribution effectively disappears.
Anyone cooperating with a foreign partner through the IraSME initiative can reach overall funding rates of 55 to 60 per cent. The exact rate depends on the foreign partner's national programme and the bilateral IraSME arrangements.[1]
Third-party costs: the 35% limit
External services — prototyping, simulations, specialised development steps — are eligible but limited. The ZIM guideline permits contracts with third parties up to 35 per cent of the project's direct staff costs.[2]
Two points are critical here:
- The 35 per cent relates to direct staff costs, not to the total assessment base. Calculating the cap wrongly leads to significantly underestimating it on overhead-heavy projects.
- Every external service has to deliver an independent, documented research contribution. Routine services or pure contract manufacturing are excluded.
What may not be included
Not every project expense is eligible. The following regularly reduce the assessment base:
- Costs already claimed through the Forschungszulage. The same person-hour may only be counted once, either in the ZIM application or in the Forschungszulage under the FZulG, not both.[3]
- Costs from activities before the application arrived. An early project start disqualifies the affected expenditure entirely.
- Costs funded through other federal or EU programmes. The GBER's ban on cumulation applies without exception.[3]
- External costs above the 35% limit: the excess is not eligible, even if the service is substantively relevant.
The Forschungszulage can be used alongside ZIM, provided the cost separation is cleanly documented. In practice it pays to keep the time records split between the two instruments from the outset.
FAQ
What is the ZIM funding rate for small companies?
Small companies get between 35 and 45 per cent on single projects. The maximum of 45 per cent goes to small companies based in a structurally weak area.[1]
What is the maximum ZIM grant for a single project?
Since the reform, the maximum eligible costs are €690,000. At a funding rate of 45 per cent that gives a maximum grant of €310,500, and at 35 per cent, €241,500.[1]
How much funding is there for ZIM cooperation projects?
The funding rate rises by five percentage points compared with a single project. The maximum eligible costs are €560,000 per company; the project as a whole is capped at €3 million.[1]
Can I bill external service providers through ZIM?
Yes, up to 35 per cent of direct staff costs. The external provider has to deliver an independent, documented research contribution; pure contract manufacturing is not eligible.[2]
Can I use ZIM and the Forschungszulage at the same time?
Yes, as long as the same person-hour isn't counted twice. The ban on cumulation in the GBER and the FZulG only prohibits funding the same expenditure twice, not using both instruments in parallel.[3]
ZIM funding: application, eligibility, process
Single, cooperation and network projects, rates between 25 and 45 per cent, applications all year round: an overview of ZIM funding.
ZIM funding rate: what percentage you get, by company size
Whether 25, 35 or 45 per cent: the ZIM funding rate depends on your company size, the project type and your location. Here is what you get, and why.
ZIM cooperation project: finding partners and the process
ZIM cooperation projects connect SMEs with other companies or research institutions, and get five percentage points more funding than single projects. This article explains partner requirements, the application process and the main pitfalls.
ZIM eligibility in 2026: what you have to meet
Anyone applying for ZIM has to meet five core requirements, from the SME definition to technological risk. This article explains each one.
Filing a ZIM application: the process step by step
No fixed deadline, two project management agencies, one clearly defined process: how to submit a ZIM application properly, from pre-check to statement of use.
All the detail, eligibility and pitfalls:
- [1]Guideline "Zentrales Innovationsprogramm Mittelstand (ZIM)" — consolidated PDF version— Federal Ministry for Economic Affairs and Climate Action (BMWK), 2024 Source
- [2]ZIM guideline 2025 — publication page with full text and key content— BMWE / ZIM (zim.de), 2025 Source
- [3]Regulation (EU) No 651/2014 (General Block Exemption Regulation, GBER), Article 25 — aid for research and development projects— European Commission, EUR-Lex, 2014 Source
- [4]Guideline "Zentrales Innovationsprogramm Mittelstand (ZIM) — R&D funding", Bundesanzeiger AT 11.12.2024 B1— Bundesanzeiger Verlag / BMWK, 2024 Source