Simplified cost models

During the 2021–2027 programming period, all projects use simplified cost models to compensate project costs, either in full or in part. Simplified cost models include a flat rate, unit costs and a lump sum.

Simplified cost models provide more focus on the results and impact of project activities. These reduce the beneficiary’s workload, especially during the payment phase, speed up the processing of payment applications and reduce the need for additional information. Using simplified cost models, it is possible to focus more on achieving genuine change and supporting performance and effectiveness, rather than on a detailed examination of the actual costs of the project.

During the project application process, the applicant is provided information on the cost models available in the application notice and instructions. If you need additional information, please contact the funding authority. The applicant enters a proposal on the cost model to be used in their project in their project application. The final decision on the cost model used in the project will be made by the funding authority and will be indicated in their decision. One decision is given for the duration of the project, i.e. the cost model cannot be changed during the implementation of the project.  

Provisions on simplified cost models are laid down in the Eligibility Decree (866/2021) and, for projects funded under the Aid to Businesses Act, in the Decree on aid to businesses (895/2021).

Acts and decrees (in Finnish)

Act on the Financing of Regional Development and EU’s Regional and Structural Policy Projects (757/2021, Finance Act)

Government Decree on the eligibility of costs funded from the EU’s regional and structural policy funds (866/2021, Eligibility Decree)

Memorandum of the Eligibility Decree

Act on discretionary government transfers to develop businesses 2021-2028 (758/2021, Act on Aid to Businesses)

Government Decree on discretionary government transfers to develop businesses 2021-2028 (895/2021, Decree on Aid to Businesses

Memorandum of the Decree on Business Aid