Italian incentives for start-ups and SMEs

Smart & Start Italy

Probably the most important measure, because it allows innovative start-ups to obtain a zero-interest loan, without any guarantee, to cover 80% of eligible expenses between € 100,000 and € 1.5 million, for the purchase of capital goods, services, personnel expenses and business operating costs.  This percentage can rise to 90% if the start-up:

• is made up entirely of women and/or young people under 36; nor if among the members there is an expert with the title of Italian PhD (or equivalent), who works abroad and wants to return to Italy.

Furthermore, start-ups based in the Regions Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia and Sicily and in the seismic crater of Central Italy, can enjoy a non-repayable grant equal to 30% of the loan and thus return only 70% of the funding received.

a) National Innovation Fund

The italian Ministry of Economic Development has allocated 200 million euros in favor of the National Innovation Fund (FNI) – the public fund to support Venture Capital – to encourage investments in the capital of start-ups and innovative SMEs by of qualified individuals.

What are the entry requirements?
Investments must be aimed at those start-ups and innovative SMEs that are carrying out investment rounds or that have already carried out one, at the latest in the six months prior to the entry into force of the Relaunch Decree.  Through the FNI, resources can be disbursed up to a maximum of 4 times the value of the investment by private investors, up to an overall limit of 1 million for each individual start-up or innovative SME.

• To find out more, request a call back from us.
• To send their application to the FNI, interested innovative start-ups/SMEs cannot do it directly, but only through their investors, by clicking here.
• Deadline of the call: until resources are exhausted.

b) National Fund for Energy Efficiency (FNEE)

The FNEE is an incentive provided by the MISE and the Ministry of the Environment, which aims to support the implementation of interventions aimed at ensuring the achievement of the energy efficiency objectives set by the Kyoto Protocol, by companies, Energy service companies – ESCo (consisting of at least 2 years; in single or associated/aggregate form as Consortia, Network Contracts and ATI) and Public Administration.
For companies and ESCOs, the concessions are granted, upon presentation of the request through banks or financial intermediaries, in the form:

• financing, to cover a maximum of 70% of the subsidized costs, for amounts between 250,000 and 4,000,000 euros;
• guarantee, on individual financing transactions (including capital and interest) to cover up to 80% of eligible costs for amounts from 150,000 to 2,500,000 euros.

The funded interventions are:

• the reduction of energy consumption in industrial processes;
• the construction and/or implementation of district heating and cooling networks and systems;
• the efficiency of public services and infrastructures, including public lighting;
• the energy requalification of buildings.

Eligible expenses are those for:

• consulting services;
• plant, machinery and equipment;
• interventions on the building envelope;
• specific infrastructures.
• To submit your application immediately, click here.
• Deadline of the call: the incentive is at the counter; applications are examined on the basis of the order of arrival; there are no rankings or deadlines.

3) Digital Transformation

The Digital  transformation call was provided for by the Growth Decree to support the technological and digital transformation of the production processes of micro and SMEs in possession of certain requirements and operating mainly or primarily in the sectors:

• manufacturing;
• direct services to manufacturing companies;
• tourism and / or commerce;

Through the implementation of the projects that enable technologies identified in the National Business Plan 4.0 (eg: (advanced manufacturing solutions, additive manufacturing, augmented reality, big data and analytics, etc.), as well as other technologies relating to digital supply chain solutions.
This call finances projects for amounts up to € 100 million, on the basis of a nominal percentage of eligible costs and expenses equal to 50%, of which 10% in the form of a grant and 40% as a subsidized loan.

• To submit your application for admission to the call immediately, click here.
• Deadline of the call: until resources are exhausted.

4) Calls for the development of industrial property (trademarks, patents, designs, etc.):

Patent box

It is a facilitated taxation regime that can be chosen by all the holders of business income deriving from the use of copyrighted software, industrial patents and designs/models.
Furthermore, companies that carry out research and development activities (therefore also many innovative start-ups) can exclude from the tax base 50% of the income deriving from:

• the use, even jointly, of the aforementioned intangible assets (software protected by copyright, industrial patents, etc.);
• the sale of the same, if 90% of the “proceeds” are reinvested in the maintenance or development of other intangible assets before the end of the second tax period following the one in which the sale took place.
• Deadline of the measure: no deadline.

5) Rest in the South (Italy)

Rest in the South (Italy) is the incentive that supports the birth and development of new businesses and freelancers in Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia, Sicily and in the 116 municipalities located in the areas of the seismic crater of Central Italy.
The measure:

• is aimed at those aged between 18 and 55 and companies operating in the sectors of industry, crafts, processing of agricultural products, fishing and aquaculture; provision of services to businesses and individuals; tourism.

covers up to 100% of expenses, with:

• a maximum loan of 50,000 euros for each applicant, which can reach up to 200,000 euros in the case of companies consisting of four shareholders;
• a maximum loan of 60,000 euros, only for companies exercised individually with a single proponent;
• an additional non-repayable grant:
• • • 15,000 euros for sole proprietorships and professional activities carried out individually
    • up to a maximum of 40,000 euros for companies.

• Deadline of the call: until resources are exhausted.

Applications are evaluated in chronological order of arrival within 60 days from the date of submission (except for any requests for integration of documents). Invitalia verifies the possession of the requisites and then examines the initiatives on the merits, also through an interview with the proposers.