How to receive incentives for startup investments

The tax break is equal to 50% of the investment up to € 100,000 for those who support startups and € 300,000 for innovative SMEs

(photo: Getty Images) A ​​new incentive for individuals who invest in startups and innovative SMEs: the decree defining the methods of implementation was published in the Official Journal. To establish the contours of the measure, introduced by the Relaunch decree (34/2020) are the ministry of economic development and that of the economy.

The tax advantage introduced is equal to 50% of the investment made with different limits in the two cases. If it is aimed at innovative startups, the maximum investment with respect to which the investor can access the incentive cannot exceed 100 thousand euros, in each tax period (for a deduction amount not exceeding 50 thousand euros). If, on the other hand, it is addressed in favor of innovative SMEs, the maximum eligible investment is 300 thousand euros (therefore no more than 150 thousand euros). Beyond this limit, the investor can deduct 30% on the excess part, in each tax period.

All this must be done within the limits of the thresholds set by the de minimis regime, established by the European Union to prevent state aid in any form can cause a distortion of competition in the market. In particular, the tax relief is up to a maximum amount of aid granted by way of de minimis to the same startup or innovative SME not exceeding 200 thousand euros over three financial years.

The investment can be carried out directly or indirectly through mutual funds (UCITS) and must be maintained for at least 3 years. The submission of the application, registration and verification of the de minimis aid must be carried out exclusively through an IT platform that the Mise is preparing.

The measure also includes the investments already made during 2020 and up to the platform's operation: the beneficiary company, duly registered in the special section of the register, can apply in the period between 1 March and April 30 this year. Once fully operational, investments must be made only after submitting the application.