Investing in Innovative Start-ups in Italy in 2026: 65% Tax Relief, the 30% Scheme and SAFE Agreements
September 30, 2026
65% personal income tax relief
Individuals investing in the share capital of
Italian innovative start-ups may benefit from a 65% IRPEF tax credit under Article 29-bis of Decree-Law No. 179/2012.
IRPEF (Imposta sul Reddito delle Persone Fisiche) is the Italian personal income tax.
The incentive applies under the EU de minimis regime (the European framework governing limited amounts of State aid). The eligible investment may amount to up to €100,000 per tax period, must generally be held for at least three years and applies to innovative start-ups during their first three years of registration in the special section of the Italian Companies Register.
Before the investment is made, the innovative start-up must also complete the required procedure through the platform of the Italian Ministry of Enterprises and Made in Italy (MIMIT).
The ordinary 30% incentive in 2026
Article 29 of Decree-Law No. 179/2012 provides, subject to the applicable conditions, for an ordinary 30% tax incentive for investments in innovative start-ups.
For investments made in 2026, however, the previous EU authorisation expired on 31 December 2025. The applicability of the incentive must therefore be assessed in light of the procedure for the renewal of the relevant European authorisation.
According to the framework available in September 2026, the process was aimed at restoring the incentive, potentially with effect from 1 January 2026.
Its effective availability should therefore be verified at the time the investment is made.
SAFE agreements and convertible investments
Further clarification concerns SAFE agreements (Simple Agreement for Future Equity – agreements under which an investor provides funds in exchange for the right to receive equity in the future).
In Ruling No. 137/2026, the Italian Revenue Agency examined the treatment of SAFE agreements and recognised, with reference to the specific case considered, that a SAFE may qualify as a convertible investment for the purposes of the 65% tax relief.
Where the statutory conditions are met, the tax benefit may arise when the funds are transferred, without waiting for the subsequent conversion into shares or quotas.
The structure of the investment, the minimum holding period and the supporting documentation should therefore be reviewed carefully before the transaction is completed.
