Several tax benefits and incentives are provided for innovative start-ups in Italy, in cases when innovative start-up means every capital, co-operative or European company that has its taxation domicile in Italy, fulfills specific requirements and focuses on developing and commercializing innovative high-tech products.

According to the 2017 Budget Law, the Italian Government has reinforced and made permanent some tax benefits for this kind of start-up, being fully operational after the European Commission’s approval on the 18th of September 2017.

As reported in an online press release published on  October 2nd ,2017, by the Ministry for Economic Development and the Ministry of the Economy and Finance, the abovementioned benefits aim to help the launch and development of innovative high-tech companies as well as individuals that decide to invest in innovative start-up’s share capital. More precisely, individuals are entitled to a deduction on the gross IRPEF (Personal Income Tax) equal to 30% of the amount invested in the innovative start-up share capital, for a maximum investment of 1 million euros per year. On the other hand, companies may benefit of the IRES (Corporate Income Tax) taxable income deduction equal to 30% of the investment, for a maximum amount of 1.8 million euros per year.

The innovative start-up, in addition to such tax benefits, may also take advantage of the “Smart&Start Italia”, a subsidy program supported by the INVITALIA Company, which is viable until the 31st of December 2020. This  program provides companies with the chance of obtaining a loan up to 70% of the total amount of the investment, with an interest rate equal to zero, as well as an outright grant equal to 20% of the loan (only applicable for start-ups located in determined Italian regions, such as: Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardegna and Sicilia). The subsidy request of the “Smart&Start Italia” shall be filled via online form and has to include the information about the applicant, the company model, the innovations provided by the project, the market field and all the technical, economic and financial aspects of the venture.

To be eligible for these benefits, the innovative start-up shall:

  • Have been launched for no longer than 48 months;
  • Be a small-sized enterprise with its registered and operational office located in Italy;
  • Be enrolled in the Business Register, without any undergoing insolvency or voluntary liquidation proceeding and without receiving public funds and/or benefits.

Furthermore, these benefits may also be requested by non-European citizens who are not resident in Italy, but have obtained the new “start-up” visa. This visa is specifically made for non-European citizens who intend to launch an innovative start-up in Italy and it is obtainable with an online procedure which is certainly easier and faster, compared to the self-employment visa procedure.

For further information about innovative start-up launching and the related essential requirements and obtainable benefits, don’t hesitate to contact us via info@dandreapartners.com