KoWi Logo
de / en

Payment modalities

Payments in Horizon Europe projects, i.e. the way the EU funding is paid to the beneficiaries, is defined in the Grant Agreement’s Data Sheet, as well as in its Article 22.

The European Commission or its executive agencies transfer the funding amount to the project coordinator, who in turn passes it on to the other beneficiaries of the project. The budget table in the Grant Agreement contains a plan for the distribution of the funding within the Consortium. The way in which the tranches of funding are forwarded to the partners of the consortium can be specified in the Consortium Agreement.

The EU funding is paid in the following instalments:

  • the pre-financing

  • one or more interim payments

  • the final payment (payment of the balance)

Pre-financing takes place at the beginning of the project and serves to ensure the financial liquidity of the consortium. The amounts and payment dates are specified in the Grant Agreement Data Sheet. At the same time as the pre-financing is paid out, 5% of the approved maximum funding amount is withhold as contribution to the guarantee fund (Mutual Insurance Mechanism). This guarantee fund replaces a joint and several liability of the consortium for any payment defaults of a beneficiary and provides cover for the financing gap in precisely these cases.

During the project duration, interim payments will be made after the end of each reporting period. These are linked to the submission of the interim report and their amount is based on the eligible costs submitted in the report. A maximum of 90 % of the maximum grant amount can be paid out during the duration of the project.

At the end of the project, the remaining eligible costs of the project will be paid out in a final payment, but only up to the maximum grant amount. Similarly to the interim payments, the final payment is also linked to the submission and approval of the final report. In addition, the contribution to the guarantee fund at the beginning of the project will be set free with the final payment.