The ZIM funding rate isn't uniform. It depends on three variables: your company size, the project type (single or cooperation project) and whether you are located in a structurally weak region. For single projects the range runs from 25 to 45 per cent of eligible costs[1]. Cooperation projects add five percentage points on top.
How the funding rate is calculated
The basis is the assessment base of eligible costs: staff costs, the overhead flat rate, external services up to the 35 per cent limit (measured against direct staff costs) and pro rata depreciation on project-related capital goods[2]. The funding rate is applied to that sum; the result is the grant. The grant is non-repayable as long as the project is properly delivered and evidenced.
Which rate applies to your company is determined by the project management agency during assessment, based on the SME classification and the location of the operating site. The SME definition for ZIM is broader than the standard EU one: companies with up to 1,000 employees can apply[4]. Linked companies (holdings above 25%) are aggregated for the size classification, and overlooking that risks clawback later.
Rates by company size
The guideline distinguishes three size classes for the rate structure[1]:
- Small companies in structurally weak regions: 45% of eligible costs. This maximum only applies where the operating site is in a recognised assisted area.
- Medium-sized companies: 35% on single projects, regardless of location.
- Larger SMEs (up to 1,000 employees): 25% on single projects.
The exact boundary between small, medium and large follows the EU SME definition (headcount, turnover, balance sheet total), adapted to ZIM's broader target group. If you're unsure about your classification, it is worth checking before you apply: the classification is binding and directly affects how much funding appears in the decision.
The cooperation bonus: +5 percentage points
All the rates above rise by five percentage points if you submit a cooperation project, meaning a ZIM project with at least one other company or a research institution[1]. That takes a medium-sized company to 40% and a small company in a structurally weak region to 50%.
Research institutions taking part as cooperation partners are funded at 100 per cent of their non-economic costs. That makes bringing in universities or Fraunhofer institutes attractive on the numbers: the research institution contributes nothing itself, and you benefit from the higher company rate.
In international cooperations through the IraSME initiative, overall rates of 55 to 60 per cent are achievable in exceptional cases, a route that matters for companies with established European research partners.
Cost caps and grant amounts
The funding rate alone isn't enough: what matters just as much is the cost base it is applied to. The reform (Bundesanzeiger AT 11.12.2024) raised the caps[1]:
- Single project: eligible costs up to €690,000. At a 35% rate that gives a grant of up to €241,500; at 45%, up to €310,500.
- Cooperation project (per company): up to €560,000 in eligible costs; the overall ceiling per cooperation project is €3m.
- Research institution in a cooperation project: capped at €280,000.
Raising the caps from the previous guideline (€550,000 and €450,000) essentially compensates for staff cost increases since 2021. Projects that had to be split because of the old ceilings can now be brought together into a single application.
The state aid framework (GBER Art. 25)
ZIM funding rates don't exist in a vacuum: they are capped from above by EU state aid law. The legal basis is Article 25 of the General Block Exemption Regulation (GBER, Regulation (EU) No 651/2014)[3]. It sets the maximum aid intensities: up to 50 per cent for industrial research and 25 per cent for experimental development, each with SME uplifts of 10 and 20 percentage points respectively.
The ZIM rates are normally well below those ceilings. The state aid headroom only becomes relevant when ZIM is cumulated with other aid for the same project. For a standalone case with no combination, the GBER limits are generous, and you don't need to keep them in mind unless you are also applying EU funds or state programmes to the same cost items.
Combining with the Forschungszulage
ZIM and the Forschungszulage (FZulG) can be combined, with one clear limit: the same person-hour may not be counted twice. The ban on cumulation follows from Art. 8 GBER and § 7 FZulG[3]. In practice that means ZIM staff and FZulG staff have to be cleanly separated in the accounts. Assigning the same hours to both pots risks clawback from both directions.
No combination is possible with other federal funding programmes for the same expenditure. Parallel approval of ZIM and EXIST for the same project is ruled out.
FAQ
What is the ZIM funding rate for small companies? Small companies in structurally weak regions receive up to 45 per cent of eligible costs on single projects. On cooperation projects that rate rises by five percentage points.
What percentage do medium-sized companies get under ZIM? Medium-sized companies typically receive 35 per cent of eligible costs on single projects. On cooperation projects it is 40 per cent[1].
What is the maximum ZIM funding rate? Within the normal framework the maximum is 45 per cent (single project, small company, structurally weak region) or 50 per cent with cooperation. Through the IraSME initiative, up to 55–60 per cent is achievable in exceptional cases[1].
What is the maximum grant for a ZIM single project? Eligible costs on single projects are capped at €690,000. The grant paid out is that cost base multiplied by your individual funding rate[1].
Can I use the ZIM funding rate 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 (Art. 8) and § 7 FZulG prohibits double funding on identical costs. A clear cost separation by cost type is mandatory[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 2026: what the ministry's reform changes for Mittelstand applications
New rates, new priorities, new deadlines, and what innovation managers should adjust in their pipeline planning now.
ZIM funding amounts and caps explained
How much is ZIM funding, and where are the caps? Funding rates, cost caps by project type and the key figures for 2026 at a glance.
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.
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]Zentrales Innovationsprogramm Mittelstand (ZIM) — programme page— Federal Ministry for Economic Affairs and Energy (BMWE), 2025 Source