Definitions
- Beneficiaries: Legal entities that sign the Grant Agreement (GA)
- Participants: All entities involved in the project, including beneficiaries and other types of third parties (e.g. affiliated entities, associated partners, subcontractors)

Subcontractors (articles 6.2.B, 9.3 GA)
Subcontractors perform clearly defined services related to specific (action) tasks against payment.
More information: thematic page "Subcontracting"
Contractors / Purchases (articles 6.2.C, 6.2.C.3 GA)
External providers supply goods or services to support the implementation of the project, without carrying out (action) tasks themselves.
More information: thematic page "Costs of other goods, works and services"
Affiliated Entities (article 8 GA)
Affiliated entities (Horizon 2020: “linked third parties”) are legally or financially linked to a beneficiary (e.g. parent, subsidiary, or sister organisations).
- They implement their own (action) tasks.
- They may declare their own eligible costs (no-profit rule applies).
- The same eligibility rules, rights and obligations as for beneficiaries apply (e.g. own financial statements, possible CFS)
Conditions:
- Must be identified in the Grant Agreement (addition of an affiliated entity AFTER project start requires an amendment of the GA)
- Tasks must be described in the project description (Annex 1)
- Costs must be included in the budget (Annex 2) (i.e. in the affiliated Beneficiary’s budget categories)
Affiliated entities must have their own PIC in the Funding & Tenders Portal.
Liabilities and responsibilities:
The affiliated Beneficiary remains fully responsible (i.e. technically and financially) towards the European Commission and must ensure compliance of the affiliated entity with GA obligations (e.g. audit rights).
More information: Online-Infopackage "Dritte in Horizon Europe" (in German only)
Associated Partners (article 9.1 GA)
Associated partners implement project tasks, but do not receive funding within the Horizon Europe project and therefore cannot declare any costs (this applies even if they would be eligible for funding).
Conditions:
- Must be identified in the Grant Agreement (addition of an associated partner AFTER project start requires an amendment of the GA)
- Tasks must be described in the project description (Annex 1)
Associated partners must have their own PIC in the Funding & Tenders Portal.
Liabilities and responsibilities:
The associated Beneficiary remains fully responsible (i.e. technically and financially) towards the European Commission and must ensure compliance of the associated partner with GA obligations (e.g. audit rights).
More information: Online-Infopackage "Dritte in Horizon Europe" (in German only)
In-kind Contributions Free of Charge (article 9.2 GA)
These third parties provide non-monetary resources free of charge, which are used by a beneficiary for project implementation.
Examples: equipment, infrastructure, personnel
Note: Paid personnel provided by a third party are not considered in-kind contributions free of charge!
Conditions:
- The third party and its tasks must be described in the project description (Annex 1)
- Costs must be included in the budget (Annex 2) (i.e. in the associated Beneficiary’s budget categories)
Addition of in-kind contributions AFTER project start requires:
- either an amendment of the GA
- or a simplified approval procedure
Liabilities and responsibilities:
The related Beneficiary remains fully responsible (i.e. technically and financially) towards the European Commission and must ensure compliance of the in-kind contributor with GA obligations (e.g. audit rights).
More information: Online-Infopackage "Dritte in Horizon Europe" (in German only)
Financial Support to Third Parties (article 9.4 GA)
Beneficiaries provide funds received from the European Commission to third parties via e.g. grants, prizes, fellowships.
Conditions:
- FSTP must be explicitly foreseen for this project in the work programme/call, AND
- respective rules must be included in the GA.
Liabilities and responsibilities:
The related Beneficiary remains fully responsible (i.e. technically and financially) towards the European Commission and must ensure compliance of the recipients with GA obligations (e.g. audit rights).
Frequently Asked Questions (FAQ)
Can a beneficiary also be a third party in the same project?
No. Beneficiaries sign the GA, third parties do not.
Is subcontracting between beneficiaries allowed?
No. Each beneficiary must declare its own costs to the European Commission.
Can affiliated entities declare costs for their own third parties?
Yes. The same cost eligibility rules apply as for beneficiaries.
Further Information