Grants for research and development projects are regulated by the Law on State Grants for Research and Development Projects (Official Gazette 64/18) in force since July 26, 2018.
Sponsor: Ministry of Economy and Sustainable Development
Executive body: Croatian Agency for Small Business, Innovation and Investments - HAMAG BICRO
Support beneficiaries: legal and natural persons, payers of profit tax and income tax
Type of support: tax relief for research and development projects and feasibility studies (reduction of the tax base)
A research and development project includes one or more categories of research: basic research, industrial research and experimental development or feasibility study
The maximum intensity of support to which the user can exercise the right, on any basis based on this Act, including other legal bases, can be up to:
a) 100% of the amount of eligible project costs for basic research
b) 50% of the amount of eligible project costs for industrial research
c) 25% of the amount of acceptable project costs for experimental development
d) 50% of eligible costs for feasibility studies.
The total amount of support for research and development that the user can obtain per project based on this Act is as follows:
a) for mainly fundamental research: the equivalent amount in kuna up to EUR 300.000,00 per entrepreneur per project
b) for mainly industrial research: the equivalent amount in kuna up to 200.000,00 euros per entrepreneur per project
c) for predominantly experimental development: the equivalent amount in kuna up to EUR 100.000,00 per entrepreneur per project
d) for feasibility studies in the preparation of research activities: the equivalent amount in kuna up to EUR 50.000,00 per study.
The highest total aggregate amount of support for a research and development project that an individual entrepreneur can achieve on the basis of this Act and other legal bases is as follows:
a) for predominantly fundamental research: the equivalent amount in kuna up to 40 million euros per entrepreneur per project
b) for predominantly industrial research: an amount equivalent to HRK up to EUR 20 million per entrepreneur per project
c) for mainly experimental development: the equivalent amount in kuna up to 15 million euros per entrepreneur per project.
d) for feasibility studies in the preparation of research activities: an amount equivalent to HRK up to 7,5 million euros per study.
The user obtains support through an additional reduction of the tax base (UPO) for eligible costs of research and development projects, i.e. for feasibility studies, in accordance with regulations on profit tax and income tax, in the following total percentages:
a) 200% of eligible project costs for basic research
b) 150% of eligible project costs for industrial research
c) 125% of eligible project costs for experimental development
d) 150% of acceptable costs for the feasibility study.
Application: Entrepreneurs must submit an application for the award of state aid before the start of activities on the project to the Ministry of Economy and Sustainable Development, as the grantor, directly or by mail.
Project realization period: up to three years from the start of the project.
Learn more at: https://investcroatia.gov.hr/mjere-poticanja-istrazivanja-i-razvoja/