Digitization Funding in Germany: An Overview of the Funding Programs for Digitization
Veröffentlicht am 25.02.2026
Lesedauer: 14 min
Contents
- Who is Eligible for Digitization Funding in Germany?
- Digitalization Funding: What is Funded with how much?
- Digitalization Funding – Nationwide Funding Programmes for Digitalization in Germany
- Further Digitization Subsidies for your Federal State
- Application for Digitization Funding: This is how the Application Process Works
- free-com Bonus Tips for your Funding Application
- Frequently Asked Questions About Digitization Funding in Germany
- Digitize Business Processes & Gain Many Benefits
Inhalt
- Who is Eligible for Digitization Funding in Germany?
- Digitalization Funding: What is Funded with how much?
- Digitalization Funding – Nationwide Funding Programmes for Digitalization in Germany
- Further Digitization Subsidies for your Federal State
- Application for Digitization Funding: This is how the Application Process Works
- free-com Bonus Tips for your Funding Application
- Frequently Asked Questions About Digitization Funding in Germany
- Digitize Business Processes & Gain Many Benefits
The digitalization of business processes brings numerous benefits, in particular time and cost savings, reduced susceptibility to errors and greater flexibility for employees. To ensure that digital development is financially feasible, there are numerous subsidies available to German companies for digitization and innovation.
This is because digital solutions and investments in process optimization can be particularly challenging for smaller companies. In this article, we provide an overview of the most important information on digitization subsidies in Germany.
Who is Eligible for Digitization Funding in Germany?
As micro, small and medium-sized enterprises (SMEs) in particular find it difficult to drive forward the digital development of their company due to the usually not inconsiderable costs involved, most funding offers are aimed at them. The classification of a company into these categories is based on EU guidelines and largely determines the amount of funding available.
Companies that fall into one of these categories can generally apply for funding for digitization measures. For larger companies, there are selected funding programs and the possibility of loans.
The figures can vary depending on the federal state. The “Digitalisierungsprämie Plus” (Baden-Württemberg), for example, supports companies with up to 500 employees.
Digitalization Funding: What is Funded with how much?
Funding for digitalization can be applied for for a variety of projects. The introduction of new information and communication technologies (ICT) and the improvement of IT security are particularly eligible for funding. Exactly which projects are funded depends on the type of funding program. Funding is available for, among other things:
The grant amount varies depending on the type of funding and the federal state. For example, the Digitalization Premium Plus (loan variant) in Baden-Württemberg supports projects with a cost volume of between 5,000 and 100,000 euros.
Digitalization Funding – Nationwide Funding Programmes for Digitalization in Germany
Various nationwide programs are available for companies that want to optimize their digital processes. These can be applied for regardless of the respective location in Germany.
ERP Digitalization Subsidy Loan
The ERP Digitalization Subsidy Loan is a subsidy in the form of a loan with a reduced interest rate. It supports digitalization projects by commercial enterprises, sole proprietorships, and freelancers. The aim is to increase the digitalization maturity of small and medium-sized enterprises.
The funding consists of three levels:
Level 1: Basic digitalization – for freelancers and SMEs with fewer than 250 employees.
Level 2: LevelUp and
Level 3: HighUp – additionally for medium-sized companies with a maximum annual turnover of €500 million.
The most important information about the funding at a glance:
- Both running costs and investments in digitalization measures are eligible for funding.
- The more ambitious the project, the higher the level and the more favorable the financing.
- Maximum loan amount in level 1: €7.5 million per project.
- Maximum loan amount in levels 2 and 3: €25 million per project.
- Additional funding subsidies are available in levels 2 and 3.
ERP Innovation Loan
The ERP Innovation Loan is also a low-interest loan for companies and freelancers. It supports innovative companies and innovation projects. These range from product, process, or service improvements to research and development measures and their implementation. Innovation projects in the areas of marketing, organization, and business models can also be financed in this way.
The funding consists of three levels:
Level 1: Basic digitalization – for freelancers and SMEs with fewer than 250 employees.
Level 2: LevelUp and
Level 3: HighUp – additionally for medium-sized companies with a maximum annual turnover of €500 million.
The most important information about the funding at a glance:
- Both running costs and investments in innovation projects are eligible for funding.
- The more ambitious the project, the higher the level and the more favorable the financing.
- In levels 2 and 3, an additional subsidy of 3% and 5% respectively is available on the loan amount paid out.
go-inno
The BMWK’s “go-inno”funding vouchers are used to promote external consulting services in German SMEs. Consultancy services in the areas of potential analysis and implementation concepts are covered. It is important that the technological relevance is clearly recognizable and that the projects have demonstrable added value for the company. As with go-digital, only consultations by authorized external consulting companies are eligible for funding.
The most important information about the funding vouchers at a glance:
- SMEs in Germany with fewer than 100 employees and an annual turnover or balance sheet total of max. €20 million in the year prior to using the voucher are eligible to apply.
- Up to 50% of the consulting costs are covered, with a maximum daily rate of €1,100.
- For consulting in the area of potential analysis, up to 8 consultant days are subsidized, with the possibility of 2 additional consultant days if expert third parties are involved.
- Up to 20 consultant days can be subsidized for the development of an implementation concept. In addition, there is the possibility of 5 further consultant days if expert third parties are involved.
BAFA “Promotion of business consulting for SMEs”
The BAFA (Federal Office of Economics and Export Control) funding program “Promotion of business consulting for SMEs” aims to promote entrepreneurial know-how in SMEs. This program covers part of the costs of professional consulting services.
Key information about the support program at a glance:
- Support is available to German companies with up to 250 employees and an annual turnover of no more than €50 million.
- Certain requirements must be met in order to qualify (e.g., company analysis to identify weaknesses).
- Funding rate: 50%–80% depending on the federal state, with a maximum of €2,800 in eligible consulting costs.
- The consulting sessions do not have to be consecutive, but may not exceed a total of 5 days of 8 hours each.
European Regional Development Fund (ERDF)
The European Union has set up the European Regional Development Fund (ERDF) to balance out regional imbalances. The fund is endowed with around 226 billion euros for the period 2021-2027. Its objectives are to strengthen the labor market and the regional economy as well as to promote European territorial cooperation.
One of the official political objectives of the ERDF is innovative and intelligent economic change in Europe. In order to achieve this goal, all member states must use a fixed percentage of their ERDF allocation for this purpose. This is calculated on the basis of the GDP per capita of the respective country.
The funds thus made available are used for projects such as
- applied research and innovation
- investments in SMEs
- equipment, software and intangible assets
- technical assistance
Funding programs for economic development have been launched in many member states as part of the ERDF – including Germany. Some of the following grants were derived from the ERDF and support you in promoting digitalization in your company.
INQA-Coaching
INQA coaching promotes the development of tailor-made solutions for digital transformation by subsidizing consulting costs.
- SMEs based in Germany with fewer than 250 employees, at least two years on the market, and a turnover of less than €50 million
- Professional process consulting for the development of tailor-made solutions for digital transformation
- 12 consulting days, 80% funding rate
Please note: Individual funding programs for digitization and innovation are available for limited periods of time. We update our information regularly, but changes may occur at any time. We therefore recommend that you always check with the funding agency for details and current information.
Further Digitization Subsidies for your Federal State
Please note that there are certain requirements that you or your company must meet for most of these grants. You can obtain all the necessary information from your responsible federal ministry.
Application for Digitization Funding: This is how the Application Process Works
In order to receive digitization funding for your company, you must submit an application to the selected project management organization before the digitization project begins. We recommend submitting this as early as possible, as waiting times vary greatly due to the high number of funding applications and can even take several months. When submitting your application, please bear in mind that the company must be based in the relevant federal state and that the funding must be implemented there.
- 1
Application for Funding for Digitization
Complete the application form for the selected funding and submit it to your responsible district government. Which district government is responsible for your project depends on where the funding measure is being implemented.
- 2
Confirmation of Receipt of your Application
As soon as you have received confirmation of receipt of your application for digitization funding, you can start your project. Please note, however, that you are acting at your own risk.
- 3
Examination of your Application
Your application will be reviewed by the responsible district government. You may have to submit any missing documents.
- 4
Funding Notification
Depending on whether your application has been accepted or rejected, you will receive a positive or a rejection notice.
- 5
Proof of Use of the Funding
As soon as the digitization project has been completed, you must submit proof of the use of the funding to your district government. Proof of use and the results of the project will be checked.
- 6
Payment of the Funding Amount
The funding amount is paid out as soon as the review has been completed (cost reimbursement principle).
free-com Bonus Tips for your Funding Application
Digitalization and innovation drive your business forward and make it more competitive. You don’t have to finance these measures on your own. We provide you with valuable tips on applying for the right funding so that your digitalization concept is crowned with success:
- Analysis of potential: Assess the degree of digitalization in your company in advance and identify what has already been achieved and what can be expanded.
- Funding application before project implementation: First submit the funding application and then start implementation, as retroactive funding is often not offered.
- Fulfilment of all requirements: Before applying for funding, make sure that your company meets the requirements and that you have all the necessary documents.
- Seek advice: Funding applications can be very complex. Funding advisors can help you with the implementation within the framework of the BAFA, and the costs of the consultation are partially reimbursed.
- Don’t wait too long: Submit your application promptly, as funding is usually awarded on a first-come, first-served basis and the funding pot is limited.
