WBSO subsidy 2026: how to apply for R&D support for your business
The WBSO subsidy is one of the most important tax advantages for companies in the manufacturing industry that invest in research and development. For 2026, this scheme offers attractive deduction options of 32% on the first 350,000 euros of R&D labour costs and 16% on all amounts above that. This subsidy scheme stimulates innovation and ensures that Dutch companies remain competitive in the international market.
For companies in the manufacturing industry, the WBSO subsidy means a direct reduction of the tax burden when they invest in research and development work. Whether it involves developing new production processes, improving existing machines or researching innovative materials – the WBSO makes these investments more financially attractive.
What is the WBSO subsidy and how does it work?
The WBSO (Wet bevordering Speur- en Ontwikkelingswerk, or Research and Development (Promotion) Act) is a tax deduction for companies that invest in research and development. The scheme has been in place since 1994 and is one of the most widely used innovation incentives in the Netherlands. Instead of a direct subsidy, companies receive a reduction in their tax and contribution payments.
The WBSO works through a deduction on the wage bill of employees engaged in research and development activities. For 2026, the deduction percentages are 32% on the first 350,000 euros of R&D labour costs and 16% on all amounts above that. This means that a company spending 100,000 euros on R&D labour costs receives a deduction of 32,000 euros on its tax and contribution payments.
In addition to labour costs, other R&D costs may also qualify for deduction, such as costs for outsourced research, materials and equipment purchased specifically for the research project. The scheme is available to all companies that are liable to pay tax in the Netherlands, regardless of the sector in which they operate.
WBSO rates and amounts for 2026
For 2026, the WBSO uses a tiered rate system with different percentages for different brackets. This structure ensures that smaller and medium-sized companies in particular benefit maximally from the scheme, while large enterprises also achieve substantial advantages.
The first rate of 32% applies to R&D labour costs up to and including 350,000 euros per year. This means companies can receive a maximum deduction of 112,000 euros in this first bracket. For all R&D labour costs above 350,000 euros, a deduction percentage of 16% applies. There is no maximum set on the total amount over which WBSO deduction can be obtained.
| R&D labour costs | Deduction percentage | Maximum deduction |
|---|---|---|
| First € 350,000 | 32% | € 112,000 |
| Above € 350,000 | 16% | Unlimited |
A different system applies to self-employed entrepreneurs without staff (freelancers). They can claim a fixed deduction of 15,551 euros per year, provided they meet the conditions for R&D activities. For starting freelancers submitting a WBSO application for the first time, this fixed deduction is increased to 23,333 euros.
Which activities qualify for the WBSO subsidy?
Not all development activities automatically qualify for the WBSO subsidy. The activities must meet specific criteria applied by the Netherlands Enterprise Agency (RVO). The starting point is that there must be systematically and methodically executed work aimed at acquiring new knowledge.
According to the WBSO definition, research and development work includes activities aimed at technical and scientific innovation. This means the research must lead to new products, production processes or services that represent a technical advance over the existing state of the art. Routine development or copying existing solutions does not fall under this definition.
For companies in the manufacturing industry, various activities can qualify. Developing new machining tools, researching alternative materials, optimising production processes for energy efficiency, or creating smart sensor systems for industry 4.0 and innovation are examples of activities that are often approved.
Software development can also qualify for the WBSO, provided there is technical innovation involved. Developing standard business applications or websites does not fall under this, but creating advanced algorithms, machine learning systems or innovative control software does. Digital transformation in industry projects can also qualify under certain circumstances.
Application procedure and deadlines WBSO 2026
The WBSO has three fixed application periods per year with specific deadlines that are strictly enforced. For 2026, the important dates are: applications before 1 April for projects starting between 1 July and 31 December, before 1 August for projects from 1 January of the following year until 30 June, and before 1 December for projects from 1 July of the following year.
The application must be submitted via the digital portal of RVO.nl using eHerkenning level 3. This form of digital identity is mandatory and ensures that only authorised persons can submit applications on behalf of the company. Obtaining eHerkenning level 3 can take several days to weeks, so it is important to start this in good time.
| Application deadline | Project start possible from | Project start possible until |
|---|---|---|
| Before 1 April | 1 July (same year) | 31 December (same year) |
| Before 1 August | 1 January (following year) | 30 June (following year) |
| Before 1 December | 1 July (following year) | 31 December (following year) |
The application must include a detailed project description that clearly explains which technical challenges the project addresses and why existing knowledge is inadequate. RVO assesses whether the proposed activities meet the R&D criteria and then issues a decision establishing the approved R&D budget and the associated deduction.
Benefits of the WBSO for the manufacturing industry
For companies in the manufacturing industry, the WBSO subsidy offers unique opportunities to make innovation projects financeable. The direct reduction of labour costs makes it possible to have more budget available for hiring highly educated technicians, purchasing research equipment or outsourcing specialist development work.
An important advantage is that the WBSO can be combined with other innovation subsidies. In addition to the WBSO, companies can also make use of programmes such as the ISDE subsidy for sustainable energy or other instruments from the overview of subsidies for the manufacturing industry. This combination makes it possible to finance complex innovation trajectories that would otherwise be unfeasible.
The administrative burden of the WBSO is relatively limited compared to other forms of subsidy. There is no need to provide extensive financial accountability, and there are no obligations to share results or transfer intellectual property. This makes the WBSO attractive for companies that want to retain their competitive advantage.
For startups and scale-ups in the manufacturing industry, the WBSO can play a crucial role in the early development phases. The improvement in cash flow through lower labour costs can make the difference between being able to continue promising innovation projects or not. Many successful technology companies have used the WBSO as a foundation for their growth.
Combination with other subsidies and financing
The WBSO subsidy can be strategically combined with other financing instruments to achieve maximum returns from innovation investments. This stacking of different support measures is not only permitted but is also actively encouraged by the government to strengthen the innovative capacity of the Dutch business community.
European subsidy programmes such as Horizon Europe can be seamlessly combined with the WBSO. For internationally operating companies in the manufacturing industry, this opens up possibilities to set up large-scale research projects in which the WBSO reduces the national contribution and European subsidies finance the international cooperation.
Regional development agencies and provincial innovation funds often offer additional financing options that can be stacked with the WBSO. This combination is especially interesting for companies that establish themselves in designated innovation areas or that contribute to regional priorities such as the circular economy or the energy transition.
For companies investing in sustainability innovations, the combination with the EIA (Energy Investment Allowance) or MIA/Vamil is particularly attractive. These schemes focus on environmental investments and, together with the WBSO, can provide a substantial reduction in total investment and development costs.
Common mistakes in WBSO applications
One of the most common mistakes in WBSO applications is insufficiently substantiating the technical innovation in the project proposal. Many applicants describe what they want to develop but fail to make sufficiently clear why existing solutions fall short and which technical obstacles need to be overcome.
Overestimating the R&D content of activities is another common pitfall. Not all development work automatically qualifies as research and development in the sense of the WBSO. Routine engineering, applying known techniques to new products, or adapting existing systems to customer requirements often falls outside the scope of the scheme.
Timing is crucial in WBSO applications. Projects can only start after the WBSO decision has been obtained, but many companies already begin preparatory work that they wrongly consider to be R&D activity. Missing application deadlines also occurs regularly, forcing companies to wait months for the next application round.
In the hours accounting, companies often make the mistake of counting all the time of the employees involved as R&D hours, whereas only the time actually spent on research and development qualifies. Project management, administration and implementation of already developed solutions do not count towards the WBSO.
Tips for a successful WBSO application
The secret to a successful WBSO application lies in a clear and structured project description that puts the technical challenge at its centre. Start with a clear problem statement explaining which technical limitations of existing solutions the project aims to address. Then describe the research questions that must be answered to arrive at a solution.
Invest time in drawing up a detailed work plan describing the various research phases. Indicate which experiments, tests or prototype development are needed to achieve the stated goals. RVO values a systematic approach that clearly shows how new knowledge will be generated and validated.
Make use of external expertise when preparing the application. Specialised consultancy firms have experience with the assessment of R&D activities and can help formulate project descriptions that align with the WBSO criteria. This investment in professional support usually pays for itself through a higher success rate and a higher approved amount.
Ensure realistic planning and budgeting of the project. Do not overestimate the number of R&D hours that will actually be spent and take into account the time needed for regular project activities. A well-substantiated application demonstrates that careful thought has been given to the feasibility of the research project.
What is the difference between the WBSO and other R&D subsidies?
The WBSO differs from other R&D subsidies in that it is a tax deduction rather than a direct subsidy. This means that companies experience the benefits directly in their tax and contribution payments, without having to wait for subsidy funds to be paid out. Other subsidies such as the Innovation Box or MIT scheme have different objectives and conditions, whereby the WBSO focuses specifically on stimulating research and development through labour cost reduction.
Can startups without revenue claim the WBSO?
Startups can indeed claim the WBSO, even without significant revenue. The WBSO deduction is offset against the payroll tax and social contributions the company must pay for its employees. If the deduction is higher than the payroll tax due, companies can have the surplus paid out as a negative payment. For freelancers, the fixed deduction of 15,551 euros applies, whereby starting entrepreneurs can even benefit from the increased rate of 23,333 euros in the first year.
Which documents are needed for a WBSO application?
Relatively few documents are needed for a WBSO application compared to other subsidies. The most important element is a detailed project description covering the technical challenge, research approach and expected results. In addition, a budget must be drawn up with the expected R&D labour costs and any other R&D expenditure. There are no obligations to submit quotes, CVs of employees or other supporting documents, unless RVO specifically requests them during processing.
How long does it take to process a WBSO application?
RVO has a statutory processing period of eight weeks for WBSO applications. In practice, this deadline is usually met, although it can take slightly longer during busy periods. After approval, the company receives a decision establishing the approved R&D budget and the associated deduction percentages. It is possible to request changes during the project if the scope or budget changes significantly compared to the original application.
Can the WBSO be combined with the Innovation Box?
Yes, the WBSO can be combined with the Innovation Box, but both schemes have different objectives and apply at different moments. The WBSO offers benefits during the development phase of innovation through labour cost reduction, while the Innovation Box offers a reduced tax rate of 9% on profits arising from self-developed intellectual property. For companies that both develop and commercialise, this combination can be very advantageous, with the WBSO reducing development costs and the Innovation Box making the proceeds more attractive for tax purposes.
What happens if a WBSO project is not successful?
An important advantage of the WBSO is that there is no obligation to achieve successful results. Research and development always involves risks, and RVO recognises that not all projects lead to commercial success. The WBSO deduction is retained, even if the project does not deliver the expected breakthrough. It is, however, important that the activities carried out meet the R&D criteria and that the project is executed in accordance with the approved description. If no progress is made due to external circumstances, this can be documented without consequences for the deduction.
How is the WBSO checked by the tax authorities?
The tax authorities can audit companies on the correct application of the WBSO, focusing particularly on the hours accounting and the qualification of activities as R&D work. Companies must therefore keep accurate records of the time employees spend on approved R&D projects. Other R&D costs must also be substantiated with invoices and proof of payment. Good project administration clearly showing what was done, when and by whom is essential to demonstrate, in the event of an audit, that the WBSO deduction was rightly applied.
Can international companies make use of the Dutch WBSO?
International companies can make use of the Dutch WBSO, provided they are liable to pay tax and contributions in the Netherlands for the employees carrying out R&D activities. This can be done through a Dutch establishment, branch or subsidiary. The R&D work must actually be carried out in the Netherlands by employees working in the Netherlands. For multinationals, this offers the opportunity to strategically position their R&D centres and take advantage of the favourable Dutch innovation climate, with the WBSO forming an important financial incentive alongside other benefits such as the highly skilled migrant scheme.
The WBSO subsidy remains one of the most attractive ways for companies in the manufacturing industry to make innovation financeable in 2026. With the right approach and timely preparation, companies can achieve substantial benefits that directly contribute to their competitiveness and growth. Also listen to the Podcast about the Manufacturing Industry — new insights from industry every week.