European Union Research & Development Incentives

Innovative companies are playing key roles in their national economies, with research and development investments made by business being substantial drivers of growth and prosperity for nations. Due to this R&D incentive regimes are being reformed world wide at an unprecedented rate to accommodate and attract highly innovative companies to invest in their economy.

Many countries promote and encourage R&D operations in their economy as part of strategic plans to increase research activities and develop their nation. Countries which offer R&D tax incentives are considered favorable locations for internationally-mobile R&D companies.

The Austrian Government offers a cash back R&D incentive, and maintains a positive attitude towards the R&D regime. Austria offers a 10% subsidy of qualifying R&D and spends approximately 2.81% of GDP on R&D.

The Czech Republic offers R&D activites benefits inclusive of special deducatibility of certain R&D costs. Due to a lack of ownership as a result of R&D, contract companies may also reap the benefits of performing R&D for their customers.

In Lithuania, business and investor needs are considered and highly valued in their business-friendly environment. The R&D Tax Incentive was introduced in 2008, with no government plans to remove it.

The Slovakian government has been focused on strengthen the innovation industry throughout the country by offering a variety of R&D tax incentives. These incentives include a super deduction and multiple tax credits.


The Latvian government supports innovation and research by offering a super deduction of 300% to companies performing qualified research activities. Latvia has a broad eligibility criteria and the deduction is available to all industries.

The Romanian government fully supports R&D incentives to help boost innovation and R&D activities within the country. It offers a variety of incentives including a super deduction, grants and corporate income tax exemptions.

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Croatia offers R&D grants for qualified research projects with the purpose of developing a new or improved product, process of service. These grants range from EUR 25k to EUR 7.5M.


Greece offers various incentives to encourage R&D and economic growth within the country. The government is not restrictive when it comes to eligibility. All industries may qualify for the super deduction.