Costs of third parties in Horizon Europe

Definitions in Horizon Europe:

• "Beneficiaries" are the signatories of the Grant Agreement (GA)
• "Participants" are legal entities that participate in the action as "beneficiaries", "affiliated entities", "associated partners", "third parties giving in-kind contributions", "subcontractors" or as recipients of "financial support to third parties". 

Subcontractor (art. 6.2.B, art. 9.3 GA)

More information can be found on our thematic page "Subcontracting".

Contractor/Purchases (art. 6.2.C, art. 6.2.C.3 GA)

More information can be found on our thematic page "Costs of other goods, works and services".

Affiliated Entity (art. 8 GA)

So-called "affiliated entities" (in Horizon 2020: "linked third parties") have a legal and/or a capital link to a beneficiary (e.g. parent, daughter, associated companies).
Affiliated entities carry out tasks within the project and declare their own costs (non-profit rule!) in the project.
They are subject to the same conditions for participation and funding as the beneficiaries and the same rights and obligations of the GA apply to them (e.g. own financial statement, if applicable an own Certificate on the Financial Statements (CFS), own contribution to the technical report). 

Among others, the eligibility criteria require that the affiliated entity is mentioned in the GA, its tasks are agreed in Annex 1 to the GA and its costs are included in the budget of Annex 2 to the GA (the respective applicable budget category of the beneficiary).

An amendment is necessary for the admission of an affiliated entity after signature of the GA. 

The beneficiary to whom the entity is affiliated is responsible for the work of the affiliated entity (e.g. quality of work, timely completion). The beneficiary must ensure that affiliated entities comply with all obligations of the GA (e.g. audits by the European Commission).

Affiliated entities have an own PIC.

More information can be found in our Online-Infopackage "Dritte in Horizon Europe" (in German only).

Associated Partner (art. 9.1 GA)

So-called "associated partners" (in Horizon 2020: "international partners") carry out tasks within the project, but without any right to declare their costs or to apply for funding (Please note that this applies even if the associated partner is eligible for funding.).

Among others, the conditions require that the associated partner is mentioned in the GA and its tasks are agreed in Annex 1 to the GA.

An amendment is necessary for the admission of an associated partner after signature of the GA. 

The beneficiary to whom the associated partner is linked is responsible for the work of the associated partner (e.g. quality of work, timely completion). If the associated partner is not linked to a single beneficiary, the whole consortium is liable. The beneficiary must ensure that associated partners comply with certain obligations of the GA (e.g. audits by the European Commission).

Associated partners have an own PIC.

More information can be found in our Online-Infopackage "Dritte in Horizon Europe" (in German only).

In-Kind Contribution free of charge (art. 9.2 GA)

So-called "third parties giving in-kind contributions free of charge" provide in-kind contributions (i.e. non-financial resources) free of charge to a beneficiary that are used by this beneficiary to carry out the own tasks within the project.

Examples include equipment, infrastructure as well as personnel (Please note that personnel as in-kind contribution must not be confused with staff that is provided by a temporary work agency - these costs must be reported under "other goods, works and services").

Among others, the eligibility criteria require that the third party and its in-kind contributions are agreed in Annex 1 to the GA and its costs are included in the budget of Annex 2 to the GA (as costs of the beneficiary) (Please note that the declaration of eventually incurred costs is only applicable to Horizon Europe).

An amendment or a "simplified approval procedure" is necessary for the admission of an in-kind contribution after signature of the GA. In the latter case, the beneficiary bears the risk of ex-post recognition of costs by the EU Commission.

The beneficiary must ensure that the third party complies with certain obligations of the GA (e.g. audits by the European Commission).

More information can be found in our Online-Infopackage "Dritte in Horizon Europe" (in German only).

Recipients of Financial Support to Third Parties (Art. 9.4 GA)

Third parties may receive financial support (e.g. in the form of grants, fellowships, prizes) by beneficiaries from the project budget only if this is explicitly foreseen in the work programme and if article 9.4 is shown in the GA.

Among others, the eligibility criteria require that the recipient as well as its rights and obligations are agreed in the GA.

The beneficiary granting the financial support is responsible for the proper use of the financial support by the recipients. The beneficiary must ensure that the recipient complies with certain obligations of the GA (e.g. audits by the European Commission).

Questions & Answers

Question: Can a beneficiary simultaneously be a third party of another beneficiary in the same action?
Answer: No.
Explanation: Third parties are organisations that have not signed the GA. Therefore an organisation cannot simultaneously be a beneficiary and a third party.

Question: Can a beneficiary simultaneously be a subcontractor of an affiliated entity of another beneficiary?
Answer: No.
Explanation: Subcontracting between beneficiaries of the same action are not eligible for funding. Since affiliated entities are subject to the same eligibility rules as the beneficiaries, these rules must be applied accordingly.

Question: Can an affiliated entity charge costs of contractors, subcontractors and in-kind contributions?
Answer: Yes.
Explanation: Affiliated entities are subject to the same eligibility rules as the beneficiaries, therefore these rules must be applied accordingly.

More information can found ...

• in the Annotated Grant Agreement (AGA), article see above the respective third party
• in our Online-Infopackage "Dritte in Horizon Europe" (in German only)