Research and Development (R&D) Grant
Croatia does not offer it’s own national R&D tax incentive, but it does allow for the EU R&D cash grant to assist companies in funding their qualified research projects and related infrastructure.
The grants range from EUR 25k to EUR 7.5 million depending on company size, research type and partnership.
DESCRIPTION OF INCENTIVE
Four different types of research are funded through the grant program. These include:
- Fundamental research – activities conducted to broaden scientific knowledge.
- Applied research – research used to gain new knowledge in the hopes of developing or improving a process, product or service.
- Developmental research – gathering and using existing knowledge and skills to develop new or improved products, processes or services.
- Technical Feasibility Studies – activities executed prior to starting an applied or development project with the purpose of assessing the technical expertise needed to complete the project based on its technical specifications.
The eligibility for the grant is restricted to the following industries:
- transport and mobility
- energy and sustainable environment
- food and bio-economy
- health and life quality
Qualified R&D expenses include:
- salary costs on employees directly involved in the project;
- Cost of instruments and equipment used in the project;
- Depreciation expense; and
- Indirect expenses such as rent, overhead and material expenses.
- overhead costs;
Companies that have been operating for less than 36 months are also entitled to a research grant. The grants are to be used for the development of new and innovative products or services. The grants for startups range between EUR 20k and EUR 200k.
Swanson Reed offers the following services:
- Advice on tax preparation relevant to claiming the R&D tax credits incentive
- Preparation of documents relating to filing and substantiating a R&D taxation claim
- R&D tax advice and consultations
- R&D tax claim planning and preparation
For a full range of services in relation to the credit, please click here.