Grant for Companies' Research and Development Employees
We support the development activities of companies
We encourage entrepreneurs to invest more in development activities in order to increase the growth of the volume of research and development activities of companies by preserving the jobs of research and development employees and creating new ones.
The payment of the support is made based on data from the Tax and Customs Board.
Completing the application takes about 10 minutes and there is no reporting obligation.
Applying for support is done on a round-based basis.
Grant decisions are made after the end of the application round.
Applying for the grant is closed.
The next round of applications is planned for August 2025 (for the period 01.01.2025-30.06.2025).
Who is the grant intended for?
The grant is intended for companies registered in the Estonian Business Register that have at least one research and development (R&D) employee.
The support is de minimis aid. The applicant must not have received de minimis aid (DIA) exceeding EUR 300,000 in the last three years.
The aim of the measure is to promote the recruitment and retention of R&D employees:
- During a three-year pilot, the support for an enterprise’s R&D employee is planned to be provided to companies entered in the Estonian commercial register where R&D employees work, in order to increase the volume of R&D carried out in the private sector
- to learn about the impact of the introduction of a tax incentive in order to assess possible changes to the tax system
- to create organized statistics that will improve Estonia’s position in international ratings and positively affect Estonia’s image and competitiveness
The support is also aimed at companies whose employees participate in other R&D projects and whose labor costs are paid within the framework of other projects.
Research and Development (R&D) employees are professionals, including scientists, engineers, and technicians, who are actively involved in carrying out research and development activities. These individuals possess high levels of education, expertise, and experience in their respective fields and directly contribute to R&D projects within an institution or its subdivisions.
The classification of R&D employees as “scientists,” “engineers,” or “technicians” is based on the activities they perform, not their job titles. For instance, a scientist may take on tasks typically associated with a technician, and a technician may perform duties usually carried out by a scientist.
Key Responsibilities of R&D Employees:
- Planning and managing research and development projects
- Conducting scientific and technical work within R&D projects (e.g., preparing and conducting research, building prototypes)
- Preparing interim and final reports for R&D projects
- Providing research and development services for projects (e.g., laboratory work, testing)
Anyone engaged in one or more of these activities contributes to the R&D efforts of the institution or its subdivisions and should be counted as an R&D employee, regardless of their formal job title or duties.
The employment contract between the grant applicant and the R&D employee must be either for an indefinite period or valid for at least 12 months from the date of the contract’s conclusion.
The amount of the subsidy per TA employee is a maximum of 50 percent of the income tax calculated on the employee’s salary declared to the Tax and Customs Board. The basis is the TSD 08.2024 – 01.2025
What is the grant for?
- The support is available for expenses related to the salary of the company’s R&D employee. The fees of the board member are not eligible
- The amount of support per R&D employee of the recipient is a maximum of 50 percent of the income tax calculated on the salary declared to the Tax and Customs Board for the R&D employee during the supported period
- The TA employee has worked for at least three months in the period 01.07–31.12.2024 and the company has declared social tax and income tax on the payments made to the Tax and Customs Board
- If the R&D employee also performs other tasks, the support is calculated based only on the proportion of tasks related to R&D
What will change in my company?
Increased Volume of Research and Development
Your company's research and development activities will expand.
Creation of More R&D Jobs
There will be an increase in the number of R&D positions within your company.
Enhanced Competitiveness
Your company’s overall competitiveness in the market will improve.
Assistance for applicant
Read more about the terms and conditions in the grant regulation (in Estonian)
Read about applying grant in Estonian here
The application can be compiled and submitted in the online E-toetus environment
Grant can be applied only in Estonian language.
Grant applications can be submitted from 17.02.2025 at 9:00 to 18.03.2025 at 16:00. The amount of the subsidy is 50% of the income tax declared on the salary of the TA employees.
The application must include the data of the TA employees: name, personal identification code, job title, TA start date and the proportion of TA activities in total working time. It is not necessary to include documents related to the employees.
Find more information about the previous projects and the grants they received here:
