Estonian entrepreneurs can now apply for support to cover the labour costs of research and development employees. The amount of support is 50 per cent of the income tax calculated on the employee’s research and development-related salary in the second half of 2024 (up from 25% in the previous period).
Companies registered in Estonia that have at least one R&D employee for whom income tax is paid in Estonia can apply for this grant.
The classification of research and development employees for the purposes of the grant is not based on the job title but on the employee’s actual activities. If a research and development employee also performs other tasks, for example, the support amount is based on the proportion of their R&D tasks.
Types of employees covered by this grant include engineers or scientists with a scientific degree or higher education who professionally engage in basic and applied research or conduct experimental and development work to create new knowledge, products, processes, methods and systems.
But the grant can also be applied to technicians involved in research and development who have a professional certificate in the field they work in and are supervised by a scientist or engineer.
Completing the application takes about 10-15 minutes, and there is no reporting obligation. Applications can be submitted from February 17th to March 3rd. Grant decisions are made after the application round ends.
Doing smart business with smart people in Estonia? Read more about the Grant for Companies’ Research and Development Employees to find out if you’re eligible. For any other questions about doing business in Estonia, contact us here.
