Investing in Italian startups in 2026: which tax incentives are actually left

If you are raising from business angels or private investors in Italy, one of the first questions you will get in 2026 is: "What deduction do I get?". The answer changed on 1 January, and many founders do not know it yet.

In short

• The ordinary 30% deduction for investing in innovative startups and SMEs cannot be used from 1 January 2026.
• The 65% de minimis personal income tax deduction remains available, but only for some startups and with tight limits.
• A restoration of the 30% scheme for 2026 has been requested and notified at EU level, but as of late October 2026 it is not yet approved.

What happened to the 30%

The ordinary scheme (an income tax deduction for individuals, a corporate deduction for companies) relied on an EU state-aid authorisation. That authorisation expired on 31 December 2025 and was not renewed in time, and the 2026 Budget Law did not replace it. The rule has not been repealed: it is suspended.

In June 2026 the Government said it had completed talks with Brussels and notified a new scheme, aiming to apply it retroactively from 1 January 2026. Industry associations have been asking for a multi-year restoration for months. Until the notification is approved, investors cannot rely on it.

What is left: the 65% de minimis scheme

The 65% deduction is higher, but much narrower:

• only for individuals investing in innovative startups (not innovative SMEs);
• the startup must have been registered in the special section of the Companies Register for no more than three years;
• eligible investment is capped at €100k per tax year, so the maximum deduction is €65k;
• the stake must be held for at least three years;
• a prior request on the Ministry (MIMIT) platform is required before investing;
• it counts as de minimis aid for the startup, so the company's remaining allowance matters;
• any portion that exceeds the investor's tax liability can convert into a tax credit;
• indirect investments through vehicles are excluded, and so are investors who are also significant suppliers of the startup.

What to do if you are raising

1. Check your status. Are you registered as an innovative startup? Since when? How much de minimis allowance have other grants already used?
2. Put it in writing in your investor materials. One clear page on what applies and what does not saves weeks of questions and surprises at transfer time.
3. Plan the timing. The MIMIT request comes before the investment: a rushed close can cost investors the deduction.
4. Have your accountant validate everything. The rules have exceptions that depend on each investor's situation.

Sources

• GDC Tax: innovative startups and SMEs, income tax incentive awaiting 2026 approval
• PMI.it: innovative startups, incentives and rules
• Edotto: the 65% deduction and the MIMIT request

This article is not tax advice. We update it as soon as things change: join Dispatch to get the update. More opportunities for North-East startups are in the Capital Map. If you are preparing a round and want a sounding board, write to us.