## Contents

- 8. Startup & SME Incentives by Country
- France
- Netherlands
- Ireland
- Germany
- Spain
- Luxembourg
- Belgium
- Other member states (orientation — verify current parameters)

## 8. Startup & SME Incentives by Country

*Last verified: Jun 2026. R&D/startup incentives are among the fastest-moving rules — rates, caps and eligibility windows change with each annual finance law. Confirm current parameters with the national authority/agency before modeling them.*

### France
- **JEI (Jeune Entreprise Innovante)**: The **corporate-tax exemption was ABOLISHED for companies created on/after Jan 1, 2024** (older qualifying companies could retain it). The surviving benefit is the **employer social-contribution exemption on R&D staff** plus local-tax exemptions. The qualifying **R&D-expenditure threshold rose from 15% to 20% of charges from 2026**. Other conditions: < 8 years old, < 250 employees, < €50M turnover. **New 2026 category "JEII" (Jeune Entreprise d'Innovation à Impact)** — companies with 5–20% R&D meeting social/solidarity-economy criteria — introduced by the 2026 Finance Law. Verify at [entreprendre.service-public.fr](https://entreprendre.service-public.gouv.fr/) and [BOFiP](https://bofip.impots.gouv.fr/).
- **CIR (Crédit d'Impôt Recherche)**: R&D tax credit (historically 30% up to €100M, 5% above). The headline rate and eligible-cost base have been trimmed in recent budgets — confirm the current-year rate at [impots.gouv.fr](https://www.impots.gouv.fr/). Refundable for SMEs.
- **CII (Crédit d'Impôt Innovation)**: Innovation tax credit for SMEs on design/prototyping/pilot expenditure (rate ~20–30%, capped base ~€400K — verify current rate). 
- **IP regime**: 10% effective rate on qualifying IP income (see §7).

### Netherlands
- **Innovation Box**: 9% effective rate on profits from qualifying innovations (patents, WBSO R&D).
- **WBSO (Wet Bevordering Speur- en Ontwikkelingswerk)**: R&D wage tax credit. 32% of first €350K in R&D wage costs, 16% above. Startups get 40% on first tranche.
- **Startup visa**: 1-year residence permit for non-EU entrepreneurs with innovative business plan.
- **SEED Capital scheme**: Government co-investment in VC funds backing early-stage tech companies.

### Ireland
- **R&D Tax Credit**: 25% of qualifying R&D expenditure (from 2024, first €50K at 30%, then 25%). Refundable over 3 years if no tax liability.
- **KEEP (Key Employee Engagement Programme)**: EMI-like share option scheme. No income tax on exercise (only CGT at 33% on disposal). Company must be trading < 15 years, < €50M assets, < 250 employees.
- **KDB (Knowledge Development Box)**: 10% effective rate on qualifying IP profits.
- **Employment & Investment Incentive (EII)**: Tax relief for investors in qualifying SMEs (40% income tax relief on investments up to €500K).

### Germany
- **Forschungszulage (R&D Allowance)**: 25% of qualifying R&D personnel/subcontracting costs (**35% for SMEs from 2026**). **Max assessment base raised to €12M/year from 2026** (was €10M) → max credit up to €3M (large) / **€4.2M (SME)**. From 2026 a **20% flat-rate overhead** can also be claimed on eligible costs. Applies from the first euro; refundable against tax. Verify at [BMF](https://www.bundesfinanzministerium.de/).
- **INVEST Grant**: 20% acquisition grant for angel investors buying shares in qualifying startups; additional exit grant on capital gains. Caps per investor/year apply — verify current figures at [BAFA](https://www.bafa.de/).
- **EXIST**: Federal startup grants for university spin-offs (living + material costs for ~12 months, extensions possible).

### Spain
- **R&D Deduction**: 25% of R&D expenditure; 42% on excess over prior 2-year average. Additional 17% for qualified R&D personnel costs. Innovation: 12% deduction.
- **Patent Box**: 60% reduction on qualifying IP income (effective rate ~10%).
- **Startup Law (Ley de Startups, 2023)**: 15% CIT rate for first 4 years for qualifying startups. Stock option exemption up to €50K/year. Simplified VAT cash accounting.

### Luxembourg
- **IP regime**: 80% exemption on net income from qualifying IP (effective ~5.2%).
- **Investment tax credits**: 8% on first €150K of qualifying investments, 2% above. Additional credits for environmental investments.
- **Young Innovative Company (JEI-like)**: Under development; some R&D grant programs available through Luxinnovation.

### Belgium
- **Innovation Income Deduction**: 85% deduction on qualifying IP income (effective ~3.75%).
- **Partial salary withholding tax exemption**: 80% exemption on wage withholding tax for qualifying researchers. Employer retains the exempted amount.
- **Tax shelter for startups**: personal income-tax reduction for investments in qualifying micro/small startups (verify current rates and the per-investor annual cap).

### Other member states (orientation — verify current parameters)

| Country | Headline R&D / startup incentive |
|---------|----------------------------------|
| Italy | R&D/innovation tax credit (rates vary by activity); "Patent Box" now a **110% cost super-deduction** on qualifying R&D; startup/innovative-SME register with tax/labour reliefs. |
| Portugal | **SIFIDE II** R&D tax credit (high base + incremental rate); IFICI ("new NHR") regime for skilled inbound talent; startup-law stock-option relief. |
| Austria | **Forschungsprämie** (research premium) ~14% cash refund on qualifying R&D, no cap on base. |
| Sweden | Employer social-contribution reduction for R&D personnel (FoU-avdrag), capped monthly. |
| Denmark | Enhanced deduction / payable credit for R&D losses (skattekredit). |
| Estonia | No separate R&D credit — the 0% retained-profit CIT is the core incentive; grants via [EAS](https://eas.ee/). |
| Lithuania | 0% CIT for new small entities (first 2 years); triple deduction of R&D costs; reduced 5%/7% IP/SME rate. |
| Poland | **R&D relief** (up to 200% deduction of eligible costs), **IP Box 5%**, "Polish Investment Zone" CIT exemption, prototype/robotization/expansion reliefs. |
| Spain | R&D deduction (25%, 42% on excess + 17% staff uplift); **Startup Law** 15% CIT for 4 years, €50K/yr stock-option exemption. |
| Hungary | Development tax allowance; super-deduction for R&D; very low 9% headline CIT. |
| Croatia / Slovenia / Slovakia / Czechia | R&D super-deductions (often 100–200% of eligible costs) + investment incentives; confirm at the national authority. |

For any of the above, confirm the **current rate, cap, eligibility and de minimis/state-aid limits** with the national tax authority or innovation agency before relying on the figure.

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