The Landscape of Business Incentives for Entrepreneurs in Italy 2026

Italy has over 34 national incentive programs for entrepreneurs, managed mainly by Invitalia, MISE (Ministry of Business and Made in Italy) and other bodies. To these are added numerous regional calls. This guide presents the 10 most important tools for those who want to start or develop a business in Italy in 2026.

1. Resto al Sud — up to €200,000

Invitalia's flagship program for the South. Intended for entrepreneurs between 18 and 55 years old who start a business in the regions of Southern Italy (Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia, Sicily).

• Coverage: 100% of investment
• 50% non-repayable grant + 50% zero-rate financing
• Individual amount: up to €200,000
• Company amount: up to €800,000

2. Smart&Start Italia — up to €1.5M

Zero-rate financing for innovative startups registered in the special section of the Business Register. Covers up to 80% of eligible expenses.

• Amount: €100,000 to €1,500,000
• Rate: zero
• Bonus: 90% coverage for startups in the South, female-led or youth-led
• Management: Invitalia

3. ON — Beyond New Enterprises at Zero Rate — up to €3M

Incentive for young people (18-35 years old) and women who start a business: zero-rate financing covering 90% of investment, with a non-repayable portion up to 40%.

• Maximum amount: €3,000,000
• Non-repayable: up to 40%
• Zero rate on remaining 60%

4. Guarantee Fund for SMEs — guarantee up to 80%

The most used tool in Italy: the Fund guarantees free coverage up to 80% of bank loans for SMEs and freelancers. It does not disburse funds directly but greatly facilitates access to credit.

• Free guarantee up to 80% of loan
• Guaranteed amount: up to €5 million
• For: SMEs, micro-enterprises, freelancers

5. New Sabatini — interest rate subsidy

Interest subsidy for the purchase of capital goods: machinery, equipment, hardware, software and digital technologies. Higher rate for Industry 4.0 investments and in the South.

• Eligible investment: €20,000 to €4,000,000
• Subsidized rate: 2.75% (3.575% for 4.0)
• Sectors: all

6. Tax Credit for R&D, Innovation and Design

Automatic tax credit for companies investing in research, development, technological innovation and design:

• R&D: 10% (maximum €5M)
• Technological innovation: 5% (maximum €2M)
• Design and aesthetic creation: 5% (maximum €2M)
• Ecological/digital 4.0 transition: 10% (maximum €4M)

7. Transition 5.0 — tax credit up to 45%

The new Transition 5.0 program rewards investments in energy efficiency and digitalization with tax credits up to 45% for SMEs that reduce energy consumption by at least 3%.

8. Innovative Startup — tax benefits

Innovative startups registered in the special section of the Business Register enjoy:

• Exemption from chamber fees and stamp duty
• 30% IRPEF deduction for individual investors
• 30% IRES deduction for corporate investors
• Simplified access to the Guarantee Fund

9. SIMEST — financing for internationalization

For companies wanting to expand abroad: subsidized financing from SIMEST (CDP group) up to €500,000 for digital transition, ecological transition and participation in international trade fairs.

10. South Decontribution

Contribution exemption up to 30% on social security contributions for companies headquartered in the regions of the South. Valid for all employees, with no spending limits per company.

How to Find the Right Incentive

With over 34 national programs and dozens of regional calls, navigating can be complex. Use the BoostPro AI incentives simulator to discover in just a few minutes which incentives are available for your profile, sector and business stage.

Application Tips

• Prepare a solid business plan: most programs require it. Create one with the BoostPro AI business plan generator.
• Respect deadlines: many calls have specific deadlines and require applications to be submitted before project launch.
• Check cumulation rules: many incentives can be combined with each other within de minimis compliance.
• Check regional calls: each region offers complementary programs.

Conclusion

Italy offers one of Europe's most comprehensive incentive systems, with tools for every entrepreneurial stage — from creation to international growth. The secret lies in knowing the opportunities and preparing adequately to access them.