That of innovative startup is a legal status recognized by law, which provides access to a number of tax and financial benefits designed for supporting younger enterprises and high-tech potential.

For those who are starting a new business or have an SME with a strong research and development content, gaining this recognition can be an important competitive advantage, as long as you are familiar with the requirements and actual benefits.

The definition of an innovative startup has changed several times over the years, and so have the related benefits, so it is important to stay up-to-date. 

In 2025, as the latest changes introduced by the Laws 193/2024 and 162/2024, the incentive system for innovative startups has been significantly changed: tax deductions have been reorganized, some tax credits have been redefined, and other bonuses are being revised. But the very requirements for the definition of innovative startup have changed, and a new status in between startup and innovative SME has been introduced: that of scaleup.

In this article we will see in a clear and practical way how to become an innovative startup, what benefits it brings e Which facilities will remain active (or expire) in 2025-2026.

Innovative startup: the requirements

To obtain the qualification of innovative startup is not automatic it is necessary to comply with a series of legal requirements precise, established by Article 25 of the Decree-Law 179/2012 and updated in subsequent years.

If your business meets these criteria, it can register in the special section of the Register of Companies at the Chamber of Commerce and thus access all the tax and financial benefits provided. Let's analyze them all.

To meet the definition of an innovative startup, your company must:

• be a corporation (including cooperative), consisting of no more than 60 months;
• fall within the European definition of an SME (micro, small or medium-sized enterprise) according to the Recommendation 2003/361/EC;
• have head office in Italy or in an EU state but with an operating subsidiary in Italy;
• Do not result from merger, demerger or transfer of business;
• have as prevailing corporate purpose The production or marketing of innovative products or services with high technological value;
• Do not engage in predominantly agency and consulting activities;
• Do not distribute profits;
• not to exceed 5 million euros annual production value Starting from the second exercise.

In addition to the basic requirements, the regulations require the startup to meet the following at least one Of the following technological innovation criteria:

1. Expenditure on research and development equal to or greater than 15% of total costs of production (including R&D personnel, consultancies, prototypes, patents, etc.) or greater than 15% of the value of production, whichever is greater;
   
2. Highly qualified personnel, with at least One-third of employees holding doctoral degrees or at least two-thirds master's graduates;
   
3. Patent ownership or license industrial, registered software or other intellectual property directly related to the business.

These parameters are self-certified in the application for registration in the special section of the Register of Companies dedicated to innovative startups, but it is important to be able to document them in case of audits.

After the first three years, to remain on the registry the startup must demonstrate at least one of the following additional requirements:

• +25% of R&D expenditures.
• An experimental contract with a public administration
• Increase in revenue or employment >50% from the second to the third year of operation
• Capital reserve >€50,000 through a convertible loan, a capital increase at premium or an equity crowdfunding campaign (together with the +20% requirement of R&D expenditures).
• At least one patent.

From innovative startup to scale-up

With the regulatory changes made by Law 193/2024 and Law 162/2024 - the latest steps in the so-called “Scale-up Act” - a new status has been introduced in Italy for companies that, while starting out as innovative startups, show a significant leap in size and technology: the status of scale-up (i.e., innovative companies in the expansion stage).

After five years in the special section of the Companies Register, an innovative startup can extend its registration if it demonstrates that it has achieved certain growth requirements that set it up as a scale-up:

• A capital increase of at least 1 million euros over the two-year period through the entry of collective investment schemes (CIUs); or
  
• An increase in revenues from core business operations of more than 100 % (doubling) in a two-year period.

In addition to this, the company must still fall within the size requirement set by the European definition of an SME (micro, small or medium-sized enterprise) according to Recommendation 2003/361/EC.

From innovative startup to innovative SME

If the startup exceeds the limits set for scale-up status, or when 4 years have passed since entering scale-up status, it is possible to Evolve into innovative SME. Innovative SMEs share many of the tax and financial advantages of startups, but without the age limit-they are, in effect, the next step in the growth path of an innovative company.

Innovative startups: facilities

Once you have obtained innovative startup status, you can access a system of tax and financial benefits broad and articulated. Some measures are reserved for businesses, while others reward those who invest in the capital of startups, to help attract investment to innovative companies.

Tax breaks for those who invest

• IRPEF deduction of 65% of investments in innovative startups for individuals, up to a maximum of €100,000 per tax period.
• IRES deduction of 30% of investments in innovative startups for legal entities.

These deductions are subject to conditions:

• the investor cannot hold more than the 25 % of the capital stock after the investment;
  
• the investment must be maintained for at least 3 years;
  
• the operation must be within the regime de minimis European. According to the Regulation (EU) No. 1407/2013, an enterprise can receive up to €200,000 aid de minimis Over three consecutive fiscal years, including public and private funds.

This is a very powerful incentive that increases the attractiveness of innovative startups compared to other investment instruments, but it must be included in the overall funding environment of the startup. Therefore, investments that want to fall under this facility must be approved by a body that verifies that the overall threshold is not exceeded de minimis, and it is the startup itself that has to apply for the facility on behalf of the investors.

For investments approved by the December 31, 2024, not yet perfected or made in several tranches, the previous 30% rate outside the regime de minimis. However, new facilitation applications submitted in 2025 automatically fall under the updated scheme.

This transition phase is important to consider if you are planning an equity crowdfunding campaign or capital raise: clearly communicate which tax regime applies can directly influence the investment decision. We also emphasize that in the absence of a tax deduction applicable without limit to all investors, it will become even more important to offer some reward exclusive and attractive to stimulate participation in a crowdfunding campaign.

Incentives for businesses

Innovative startups benefit from a number of direct advantages that ease management and support investment:

• Exemption from stamp duty and chamber fees, both at the time of incorporation and throughout the period of registration in the special section of the Commercial Register.
  
• Priority access to the SME Guarantee Fund, which can cover up to 80% of bank loans or loans provided by supervised intermediaries.
  
• Research, development and innovation tax credit, recognized on expenses related to technology projects, prototyping, digitization and sustainability. The rate varies according to the type of activity (R&D, technological innovation, design), and is being revised under the Transition 5.0 Plan. The Plan aims for greater traceability of eligible expenses and imposes limited cumulability with other regional or European incentives for the same expenses.
  
• Work for equity: possibility of remunerating employees and consultants with company shares, tax- and contribution-free, encouraging team involvement and talent attraction.
  
• Participatory Financial Instruments (PFS), inspired by the U.S. SAFE model, which allow capital to be raised even before a pre-money valuation is established.
  

Financial facilities and calls for proposals

In addition to the tax benefits, innovative startups can preferential access to public funds and national development programs, such as:

• Smart & Start Italy (Invitalia): subsidized financing of up to 1.5 million euros, with non-repayable portion up to 30% in the South and earthquake regions.
  
• ON - Beyond New Zero-Income Enterprises, also managed by Invitalia, dedicated to women and youth startups.
  
• National Innovation Fund and programs of co-investment CDP Venture Capital, flanking private investors in equity rounds for innovative companies.
  
• Regional calls for innovation, which give additional scores to companies registered as startups or innovative SMEs.
  

Many of these measures can be combined, as long as they meet the limits de minimis And don't fund the same expenses twice.

Why it pays to be an innovative startup

Being recognized as innovative startup is not just a bureaucratic formality: it is a strategic lever that can change the way your business grows, raises capital and presents itself to the market.

Innovative startups fit in In a privileged ecosystem made of incentives, networking, investor networks and alternative finance tools. 

The first benefit is concrete and immediate: A reduction in operating costs, which stems from the exemptions we have listed in the previous paragraphs.

Added to this are:

• simplified access to funding banking and public through priority in the SME Guarantee Fund;
  
• More streamlined administrative procedures, such as the possibility of setting up the company entirely online and making digital capital increases.
  

All this means more operating speed e less bureaucracy, two factors that make a substantial difference in growth.

But the real value of innovative startup status is. strategic, not just economic.

• Makes it more attractive for investors: The combination of tax deductions and high innovation potential balances the perceived risk.
  
• Increase your commercial and technological credibility: being registered in the special section of the Companies Register is a public recognition that attests to the high innovative content of the project.
  
• It opens the door to Network of incubators, accelerators and venture funds Operating exclusively with innovative startups.
  
• It allows you to use flexible financial instruments (such as the work for equity or the Participative Financial Instruments) to attract human and financial capital even without immediate liquidity.
  

Crowdfunding as leverage for innovative startups

Innovative startups are major players in the Italian crowdinvesting, because the prospect of the tax deduction comes in handy as an incentive to find investors in large numbers, and because at this stage it is particularly valuable for companies to raise capital without going into debt and to turn their customers into partners.

Do equity crowdfunding as an innovative startup therefore means Multiplying marketing and financing levers, collecting what can be called smart money: capital that also brings with it relationships, skills and visibility.