BAFA Consulting Grant: How It Works for Berlin Firms

Search for German government-funded consulting in English and you will see “up to 80 percent” on almost every consultant’s landing page. If your company sits in Berlin, ignore that number. The federal guideline groups Berlin with the former West German states, and there the grant is 50 percent.

On a 3,500-euro engagement, that means you pay 1,750 euros yourself in Berlin. Just across the city boundary in Brandenburg, you would pay 700.

What the grant covers

The official name is Förderung von Unternehmensberatungen für KMU, administered by BAFA, the Federal Office for Economic Affairs and Export Control, and co-funded by the European Social Fund Plus. Many people still call it by its older name, Förderung unternehmerischen Know-hows. The current guideline applies to applications filed from 1 January 2023 until 31 December 2026.

1. Berlin and former western states (50 %)1,750 €
2. Eastern states excl. Berlin, plus Lüneburg and Trier regions (80 %)2,800 €

Source: BAFA guideline Förderung von Unternehmensberatungen für KMU, section 5.2

Eligible costs are the consultant’s fee, expenses and travel, together up to 3,500 euros net of VAT. Any discount is deducted, even one you don’t take. Since 15 November 2025, BAFA calculates the grant on the gross amount for businesses that cannot reclaim input VAT, which helps small businesses using the Kleinunternehmer scheme.

Each consultation may last at most five days, which don’t have to be consecutive. Each company can claim up to five consultations during the guideline period, two per calendar year at most.

Who qualifies, and who doesn’t

The applicant must be legally independent, operate commercially or in a liberal profession, have its seat and business in Germany, and meet the EU SME definition: fewer than 250 staff and either up to 50 million euros turnover or a balance sheet of up to 43 million euros.

Some groups are out regardless of need. Anyone whose own business is advising or training, from management consultants to tax advisers and lawyers, cannot apply. Nor can charities, non-profit associations and foundations. Doctors, dentists, psychotherapists and Heilpraktiker only get funding for introducing or adapting a quality management system.

What counts as consulting

BAFA funds advice that is “conceptual and individual”. The guideline spells out what that means: an analysis of your situation, a list of the weak points found, and concrete recommendations with instructions for putting them into practice. The consultant writes this up in a report that you both sign.

That suits digital projects well when a decision is at stake. Which till system fits a café with outdoor seating? How should a small agency handle invoices once e-invoicing becomes mandatory? What does a dental lab need for IT security? Those are fundable questions. Setting up the till is not.

The guideline excludes advice that

• deals mainly with legal, insurance or tax matters, such as contracts or bookkeeping,
• aims at selling you products the consultant distributes,
• is mainly about funding programmes,
• takes place as a seminar, workshop or group session.

The neutrality rule matters for tech topics. Till resellers who “advise” and then sell you their own system are not neutral. An agency that consults and then builds your website is in a grey zone at best. Keep the two jobs separate, ideally with different providers.

Choosing a consultant

You may pick any consultant registered with BAFA for this programme. Registration requires that they are self-employed and earn more than 50 percent of their turnover from paid business consulting, and that they have a suitable quality assurance instrument.

Ask in the first call: “Are you registered with BAFA for Förderung von Unternehmensberatungen?” A small IT firm that mostly maintains servers and consults on the side often misses the 50 percent threshold. Another test: the report has to address the ESF cross-cutting principles, meaning gender equality, equal opportunities and environmental sustainability. Registered consultants know that without being told.

The application, step by step

Get the order wrong and the grant is gone. There is no retroactive funding.

1. Only if your company is in its first year: information talkFree, with a regional contact such as a chamber, no earlier than three months before applying and before the proof of use at the latest.
2. Apply online at BAFACompany details only. Do not sign anything with the consultant yet.
3. Wait for the information letterConsulting may start only after it arrives. Signing the contract already counts as starting.
4. Run the consultationFive days maximum, ending in a signed report.
5. Pay the invoice in fullIncluding VAT, by bank transfer. Cash or offsetting means no grant.
6. Submit proof of useWithin six months of the information letter: report, invoice, bank statement.

Young companies in Berlin usually turn to the IHK Berlin or, for craft businesses, the Handwerkskammer Berlin for the information talk. Plan the timing. The talk may take place at most three months before you apply, so don’t hold it in July for an application you only plan to file in November.

You will also sign a de minimis declaration, because the grant counts as de minimis state aid. List any other de minimis aid received in the past three years.

A worked example

Fee, 3.5 days

€3,500.00

VAT 19 % (reclaimed as input tax)

€665.00

Bank transfer to consultant

€4,165.00

BAFA grant (50 % of €3,500)

− €1,750.00

Input VAT refund

− €665.00

Your net share

€1,750.00

Assumptions: 3.5 consultant days at €1,000 net each, company can reclaim VAT, located in Berlin.

Bigger engagements are allowed, but nothing above 3,500 euros is subsidised. Six days at 1,000 euros would leave you paying 4,250 euros and break the five-day limit anyway.

Common reasons the grant falls through

Reading the guideline closely, these are the traps that cost people their money:

1. The consultant’s offer was accepted by email before BAFA’s letter arrived.
2. The invoice was paid in part, in cash, or offset against something else.
3. A discount was granted afterwards and not reported.
4. The report describes the status quo but gives no concrete recommendations.
5. The proof of use arrived later than six months after the information letter.

Number four is the sneaky one. Ask for an anonymised sample report from a previous job before you hire anyone.

Is it worth it for a small Berlin business?

If you face a decision with real follow-on costs and don’t know where to start, yes. Having a written plan with costs and priorities also helps when you ask your bank for a loan to implement it. Our overview of digitalisation grants in Berlin shows how BAFA fits with the loan programmes.

For a single question, such as which tills are compliant with German fiscal rules, a free first consultation is often enough. The services are listed under free business advice in Berlin, and the till rules themselves are explained in our guide to POS systems and the TSE. If the consultation shows you need a custom web application or integration, you can hand the build to someone independent, for example a studio doing custom software development.

Mind the calendar. The guideline only covers applications filed by 31 December 2026, and no successor had been published by October. If you want to use it, apply in November at the latest and ask when applying by which date the consultation and the proof of use must be completed.

Questions people ask

Can a UG or GmbH owned by non-Germans apply?

Yes. The applicant must be a legally independent SME with its seat and operations in Germany. Nationality of the owners is irrelevant. Freelancers in the liberal professions qualify too.

Can the consultant work in English?

The guideline does not prescribe a language for the consultation itself. The application platform and the paperwork are in German, so many founders pick a consultant who can handle both.

Does BAFA pay for building my app or website?

No. It pays for advice that ends in written recommendations, not for implementation, software licences or advertising. Consulting that is mainly about funding applications is excluded too.

How many times can I use it?

Up to five separate consultations during the guideline period, with no more than two per calendar year, counted by application date.