Italy for eXtrepreneurs

Italy’s 1.5 trillion euro GDP is 10th among the OECD nations and 4th within the European countries. Furthermore, the WTO ranks it at 10th place in terms of world trade for merchandise.

With its rich and vibrant art and culture, Italy has fostered creativity and innovation and funded industrial and global business development. As per a KPMG report, “Made in Italy” is the 3rd best known brand in the world. This provides eXtrepreneurs an opportunity to leverage the global image of Italy. Various resources such as a highly educated workforce, extensive network of manufacturing SMEs, strategic location to tap into various European markets and one of the most unique features of the Italian startup ecosystem: a flexible and tailor-made labour law make it a top choice for founders.

As of 2020, more than 631,000 businesses have been setup by foreign founders in Italy. The Italian economy offers robust investment incentives and has pioneered capital raising tools for startups, thus providing an ideal environment for startups to develop and grow. 

Italy for eXtrepreneurs
Italy Startup Visa

Overview

In 2014, the Italian Government, in order to encourage foreign innovation in its economy had launched the Italia Startup Visa Programme. The Programme has had tremendous success leading to sustainable growth, technological development and employment in key industrial sectors. The programme is aimed at harnessing the talent of non-EU country innovator-founders and provides many benefits: robust tax-relief policies on seed and venture capital investments, introduction of equity crowd-funding provisions, minimizing compliances, etc,. Thus, the Programme is a gateway for extrepreneurs who have a unique business idea and are looking to establish their business in Italy. As per the last ISV Report released by the Ministry of Economic Development in 2019, 481 applications were received under the programme of which only 250 had been approved in January 2020. The highest rate of acceptance was found to be among Brazillians (83%), followed closely by Ukrainians (81%) and Japanese (80%). On the other hand Pakistan faced the maximum rejections, with only 1 out of every 10 being accepted, while 1 of every 5 applications from India had been accepted.

Highlights

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Tax incentives for investment in the capital of innovative startups

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Equity crowdfunding for any company since 2017

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Low minimum investment requirement of EUR 50,000 for the entire team

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Can enjoy ‘startup’ status for up to 5 years

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No restriction on age, gender or background of founder

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Certificate of No Impediment to the granting of the visa is normally released within 30 days of submission of application

7

ISV to grant Certificates of No Impediment to 5 non-EU founders (In exceptional cases, 10) per project

Eligibility

What qualifies as a “Innovative Startup” under Italia Startup Visa programme?

  • Must be a limited company;
  • Must be a new business or operational for a period of less than 5 years;
  • Headquarters must be in Italy or in any other EU country, with at least a production site branch in Italy;
  • It should not distribute dividends;
  • It shall not be listed on a regulated market or multilateral trading system; 
  • Annual turnover must be below €5 million;
  • Should not be an entity formed as of a result of merger, split-up or selling off
  • Develop, produce and commercialize innovative products or services that is solely and primarily focused on technological innovation;
  • A startup is considered “innovative” if it fulfills any of the 3 conditions:
    • Expenses in R&D and innovation are at least 15% of either its annual costs or its turnover (the largest value is considered); or
    • employs highly qualified personnel (at least 1/3 PhD holders and students, or researchers, or at least 2/3 Master’s graduates); or
    • is the owner, depositary or licensee of a registered patent, or the owner of a registered software  

Renewal

- Once a founder applies for the Italia Startup Visa, on qualifying for the same, he obtains a 1-year startup self employment visa. 

- Within 8 days of receipt of Visa, founder shall apply for 1-year self-employment residence permit after submitting the requisite documents. 

- After 1 year, no later than 60 days before the date of expiry of the residency permit, the founder can apply for a 2 year self-employment residence permit, after submitting the below-mentioned documents to the local police headquarters (Questura) in person:

  • Visura Camerale: Certificate of Incorporation, AOA and file search report of the innovative startup;
  • Evidence of adequate annual income;
  • The business established should meet all the requirements of being an innovative startup
  • Be registered in the special section of the Business Register

For renewal of a residence permit, the applicant should have remained in Italy for a continuous duration of 6 months prior to application for renewal.

Note: The 2 year self-employment residence permit can be renewed for a further two years. The Italia Startup Visa is valid for maximum 5 years.

Permanent Status

After 5 years, the founder (non-EU Citizen) can apply for a long-term residence permit which has no expiration date.

  • Must meet all the conditions of being a innovative startup as per the Italian Startup Act, 2012
  • Have a minimum income that is not lower than the amount of welfare allowance
  • Be a regular resident of Italy for 5 years (should not be away from the Italian territory for more than 10 months in the 5-year block period or for 6 months continuously)
  • Provide Police Clearance Certificates
  • Pass an Italian language test, equivalent to A2 Level 
  • Furnish evidence of having suitable accommodation

Process and Timelines

Overview

Highlights

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Eligibility

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Renewal

Permanent Status

Process and Timelines

Overview

Highlights

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Eligibility

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Renewal

Permanent Status

Process and Timelines

European Business Expansion & Mobility for Founders

DG Country Comparison ToolTM

Compare

Quick peek at the top countries for eXtrepreneurs.

This tool compares the top nations inviting eXtrepreneurs on over 40 vital parameters to provide a holistic view and a comprehensive perspective of the Entrepreneur mobility options, the start up ecosystem and the policy benefits, to be availed.

Explore
South Africa
-40
19
Netherlands
47
3
Cyprus
26
30
Italy
34
15
Australia
-30
130
Austria
42
13
UK
50
-4
Canada
50
-110
United States
35
-100