My topic is an Innovation Action — why do I only get 70%, not the 100% I've seen elsewhere?

Because the rate depends on the type of action, not the topic's headline. Horizon Europe fixes it at 100% for Research and Innovation Actions (RIA) and Coordination and Support Actions (CSA), and 70% for Innovation Actions (IA) — rising to up to 100% only for beneficiaries that qualify as non-profit legal entities, such as universities or public bodies. A for-profit startup should plan its budget around the 70% line on any IA it joins.

Does a 100% funding rate mean the project doesn't cost me anything upfront?

No — it's a reimbursement rate, not a cash advance. Horizon Europe pays out after costs are incurred and reported: pre-financing at signature is normally 160% of the average EU contribution per reporting period, minus roughly 5-8% withheld for the Mutual Insurance Mechanism, with the remainder settled through periodic and final payments. Plan working capital for that gap regardless of which rate applies to you.

What is the EU co-funding rate?

The EU co-funding rate (often just called the funding rate) is the share of a Horizon Europe project's eligible costs the European Commission actually reimburses — 100% for Research and Innovation Actions (RIA) and Coordination and Support Actions (CSA), and 70% for Innovation Actions (IA) unless the beneficiary is a non-profit legal entity, in which case it rises to up to 100%. On top of whichever rate applies, indirect costs are added automatically at a flat rate of 25% of eligible direct costs.

The three numbers that matter

Horizon Europe fixes the reimbursement rate by type of action, not by topic. Per the Commission's own rate table: a Research and Innovation Action (RIA) is funded at 100%, an Innovation Action (IA) at 70% — except non-profit legal entities, where a rate of up to 100% applies — and a Coordination and Support Action (CSA) at 100%. On top of whichever rate applies, indirect costs (overheads) are added automatically as a flat rate of 25% of eligible direct costs, excluding subcontracting and financial support to third parties. Both figures are locked into the Grant Agreement's Data Sheet before you sign, and a single call can group several action types — check which one your topic actually uses before you model a budget.

Who actually qualifies as "non-profit"

The rate is assessed per beneficiary — and per affiliated entity — not per consortium, so a single IA can legitimately mix rates. A university or public research body in your consortium can be reimbursed at 100% for its own costs while your company sits at 70% for the same project; one partner's rate never carries over to another. To count as non-profit for this purpose, an organisation must be non-profit by legal form, or carry a legal or statutory obligation not to distribute profits to shareholders or members, with profits reinvested into the same or research activity — public bodies qualify by default. For almost every space startup applying to VIRA-tracked calls, that test doesn't apply: budget for 70% on any IA you join.

What it means for cash planning

None of this is an upfront payment — Horizon Europe reimburses costs already incurred, it doesn't advance them. At signature, the consortium receives pre-financing normally set at 160% of the average EU contribution per reporting period, minus a Mutual Insurance Mechanism deduction of roughly 5-8% of the maximum grant amount (held back to cover non-recovery risk across the programme, then released at project closure). The rest arrives through interim payments tied to periodic reporting and a final payment after the last report is accepted. So on a 70%-rate IA, your company still fronts the other 30% of every invoice for the life of the project; even on a 100%-rate RIA, real cash still moves out of your account before it comes back. Model that lag — not just the headline percentage — before you commit to a budget, and treat non-dilutive funding sources like this one as part of a wider EU space funding plan, not a same-day cash injection.

Official source: Horizon Europe Work Programme 2025 — General Annexes; Annotated Grant Agreement — Horizon Europe; EU Funding & Tenders: Legal Entity Validation Rules.

Written by Tymofiy Badikov, founder of VIRA.space (Virtual Innovation Research Assistant) — operated by Space Tech Gateway Sp. z o.o., Kraków Technology Park. VIRA tracks live European space funding calls and checks your eligibility free: see live tenders.