With the aim of encouraging the development and growth of innovative start-ups and SMEs, the Italian legislator has introduced incentive measures in favor of investors. Among the most important tax benefits, the following are currently provided:

• incentives for capital investment, with a Personal income tax deduction equal to 30% of the amount invested, up to a maximum of 1 million euros; for legal entities, Corporate income tax deduction equal to 30% of the amount invested, up to a maximum of 1.8 million euros (art. 29, DL 179/2012). Since 2017, the use of the incentive is conditional on maintaining the participation in the innovative company (holding period) for a minimum of three years;
• tax incentives in the “de minimis regime”, that is a Personal income tax deduction of 50% intended for individuals who invest in the risk capital of innovative startups or innovative SMEs (art. 29-bis, DL 179/2012);
• temporary tax exemption of capital gains realised by individuals deriving from the sale of shares in the capital of innovative start-ups and innovative SMEs, as well as of capital gains reinvested in start-ups and innovative SMEs, under specific conditions linked to the time of subscription of the shares and to the maintenance of the investment over time.

However, in order to ensure...