Indirect costs in Horizon Europe

According to the EU definition, indirect costs are costs that are needed to properly execute the Horizon Europe project but are not directly linked to any specific activity or task within the project.

How are indirect costs calculated in the Horizon Europe budget?

In Horizon Europe, the indirect costs are charged at a flat rate of 25% of the eligible direct costs, excluding costs of subcontracting.

Example: Company A is a beneficiary under a GA and has incurred the following costs: 100’000 € personnel costs, 20’000 € subcontracting costs, 10’000 € purchase costs.

Eligible direct costs: 130 000€ (100 000 + 20 000 + 10 000)

Eligible indirect costs: 27 500€ (25 % of 100 000 + 10 000) – subcontracting excluded

Total eligible costs: 157 500€ (130 000€ + 27 500€)

What can be covered from the indirect costs budget?

Normally this budget category covers all the materials and supplies for which the exact share in the project cannot be exactly established.

  • company’s day-to-day operations costs (office rental, utilities like electricity or internet, desktop computers, cell phones, fees for accounting, etc.)
  • equipment or staff costs if they cannot be proportionated or linked to the project
  • any other costs that were not reported as direct costs (travel “forgotten” to be reported, recruitment costs, etc.)

How to report indirect costs?

Indirect costs are automatically calculated in the financial statement by the IT platform used for Horizon Europe reporting. What is more, there is no need to demonstrate these costs or provide supporting documents.

Indirect costs are paid regardless of the actual overheads spent by the company.

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