Startup Funding in Italy for an MVP: Smart&Start, Startup Innovativa and the Fondo di Garanzia

Italy's main national scheme for early-stage founders is Smart&Start Italia, run by Invitalia: a zero-interest loan for 80% to 90% of a business plan between €100,000 and €1.5 million, with part of it turned into a grant in the South. It is open on a first-come basis, and its eligible costs explicitly include custom software development by third parties. Around it sit the innovative startup regime (startup innovativa), which gives tax and administrative advantages rather than cash, and the Fondo di Garanzia per le PMI, which guarantees bank loans. Smart&Start is the one that can fund an MVP build directly, if your plan is large enough to clear its €100,000 floor.

This page sets out each scheme as its official sources describe it on 20 October 2026, then answers whether the money can pay an outside development team, or one outside Italy. One rule in particular, the exclusion of turnkey contracts, matters to anyone planning to outsource the build. This is orientation, not financial, tax or legal advice. For other countries, see the European MVP funding hub, and for programmes run from Brussels, EU funding for startups.

At a glance

Smart&Start Italia

Status. Invitalia shows the measure as active, with "nessuna graduatoria" and no deadline: applications are assessed in order of arrival "fino a esaurimento fondi" (until the funds run out), within 60 days including an interview (how to apply).

A change is coming. The Gazzetta Ufficiale of 14 September 2026 carries a notice of a ministerial decree of 13 July 2026 amending Smart&Start "al fine di tenere conto della nuova definizione di start-up innovativa e introdurre ulteriori semplificazioni" (to reflect the new definition of innovative startup and introduce further simplifications). The full text is published on the ministry's site, which we could not reach today, and Invitalia's pages do not yet reflect it. Everything below comes from the operating circular Invitalia still lists. Ask Invitalia whether the new decree changes any of it before you apply.

Who can apply. According to Invitalia and the operating circular of 16 December 2019 (section 4.1):

• small innovative startups "costituite da non più di 60 mesi" (incorporated no more than 60 months before applying), with their office anywhere in Italy;
• teams of individuals who intend to set one up, including people living abroad and holders of a Startup Visa;
• foreign companies that commit to "istituire una sede sul territorio italiano" (set up an office in Italy).

Amounts. Eligible costs, net of VAT, must be "non superiore a euro 1.500.000,00 e non inferiore a euro 100.000,00" (between €100,000 and €1.5 million), per what it funds. The aid is a "finanziamento agevolato, senza interessi" (zero-interest loan) for 80% of eligible costs, or 90% if the team is made up entirely of women and/or people aged 35 or under, or includes a PhD holder who has worked in research abroad for at least three years. No guarantees are required, and the loan is repaid over up to ten years, starting 12 months after the last disbursement (agevolazioni).

The grant element. In Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia and Sicily, and in the 2016 central Italy earthquake area, only 70% of the loan is repaid. Elsewhere, part of the loan can convert into a grant of up to 50% of new third-party investment, if that investment is at least €80,000, the investor does not take a majority, and the stake is held for at least three years. Startups no more than 12 months old also receive tutoring worth €7,500, or €15,000 in the South.

Match funding. You pay the share the loan does not cover into the project's restricted account (FAQ). On a €100,000 plan at 80%, that is €20,000 of your own money.

Eligible costs (circular, section 10.1), all new:

• plant, machinery and equipment;
• intangibles such as patents, licences and certifications;
• "servizi funzionali alla realizzazione del piano d'impresa" (services needed to carry out the business plan), explicitly including "la progettazione, lo sviluppo, la personalizzazione e il collaudo di soluzioni architetturali informatiche" (the design, development, customisation and testing of IT architecture solutions), specialist technology consultancy, incubator services and marketing;
• staff working on the plan;
• plus working capital of up to 20% of the plan, including hosting services.

Timing. Costs count only if incurred after the application is submitted (FAQ; circular sections 10.2 and 10.8). The plan must be completed within 24 months of the financing contract.

How to apply. Online only, through Invitalia's application area, with SPID, CNS or CIE, a digital signature and a PEC address. You fill in the form and upload the business plan.

What it means for an MVP. Smart&Start fits a startup with a real plan for its first two years, of which the MVP is one part. A €20,000 MVP on its own is far below the €100,000 floor.

The innovative startup regime (startup innovativa)

The status comes from article 25 of DL 179/2012, substantially amended by Legge 16 dicembre 2024, n. 193, in force since 18 December 2024.

Requirements, as amended:

• a capital company or cooperative, unlisted, and now "una microimpresa o una piccola o media impresa" (a micro, small or medium enterprise);
• "costituita da non più di sessanta mesi" (incorporated no more than 60 months ago);
• resident in Italy, or in the EU or EEA with a production site or branch in Italy;
• from the second year, annual production value of no more than €5 million, and no profits distributed;
• its main purpose is innovative, high-tech products or services, "e non svolge attività prevalente di agenzia e di consulenza" (and its main activity is not agency or consultancy work);
• at least one of: R&D of at least 15% of the higher of costs and production value; a third of the team with a PhD or researcher profile, or two thirds with a master's degree; or a patent or registered original software.

Duration. Status lasts three years from registration, and can run "fino a complessivi cinque anni" (up to five years in total) if the company meets one of several conditions, such as R&D raised to 25%, an experimental contract with a public administration, more than 50% growth in revenue or staff, or a qualifying investment. Further extensions apply to scale-ups.

Benefits. For investors, a 30% tax deduction or credit, or an alternative 65% personal income tax deduction under de minimis rules on up to €100,000 a year, for the first three years from registration. The 2024 law excludes investors who also supply services to the startup with billings above 25% of their investment. The business register's page lists further benefits: exemption from some fees and stamp duties, more flexible fixed-term contracts, tax-neutral stock options and work-for-equity, equity crowdfunding, and simplified access to the Fondo di Garanzia. Some figures on that page are out of date, so check the current rule for any benefit you rely on.

What it means for an MVP. The status brings no money for the build, but it makes the company more attractive to investors and is the gateway to Smart&Start. Note that the R&D test counts "consulenti esterni impiegati nelle attività di ricerca e sviluppo" (outside consultants working on R&D) alongside in-house staff.

Fondo di Garanzia per le PMI

What it is. A state guarantee on bank loans, not a lender. "La garanzia pubblica, in pratica, sostituisce le costose garanzie normalmente richieste per ottenere un finanziamento" (the public guarantee, in practice, replaces the costly collateral normally required to get a loan), according to the Fund.

Coverage. An 80% direct guarantee, or 80% reinsurance on a Confidi guarantee of up to 80% of the loan, for investment loans to listed categories including "start-up, start-up innovative, incubatori certificati"; 50% for liquidity loans. The Fund says these transitional rules have been extended to 31 December 2026. A December 2023 announcement set the maximum guaranteed amount at €5 million per company from 1 January 2024; the current overview page does not restate a cap, so confirm it with your bank.

Startups. The Fund treats companies "costituite o in attività da non più di tre anni" (set up or trading for no more than three years) as startups and assesses them on forecast figures and a business plan (evaluation models). Innovative startups and certified incubators can skip the credit assessment under certain conditions.

How to access. You do not apply yourself. Your bank requests the guarantee when it lends to you, or a Confidi gives the first guarantee and requests counter-guarantee from the Fund.

Can this money pay an outside development team, or one in another country?

Scheme by scheme, from the official rules:

• Smart&Start Italia. Yes, in principle: third-party software design, development, customisation and testing is an eligible service. The operating circular attaches conditions that matter to an outsourced build:

  • Turnkey contracts are excluded. Section 10.4 excludes "le spese effettuate, in tutto o in parte, mediante il cosiddetto 'contratto chiavi in mano'" (costs incurred wholly or partly under a so-called turnkey contract). The circular does not define where a fixed-price software contract stops and a turnkey contract starts. Ask Invitalia how to structure a development contract so that it is eligible, before you sign one.
  • Unrelated suppliers at market terms. Purchases must be made "a condizioni di mercato da terzi che non hanno relazioni con l'acquirente" (at market terms from third parties with no relationship to the buyer). Nothing supplied by shareholders, directors, employees or their close relatives, or by companies they own or sit on the board of, is eligible (section 10.12).
  • One-off consultancy. Consultancy must serve the project directly and be provided by third parties "a titolo non continuativo o periodico" (on a non-continuous, non-recurring basis).
  • Used in Italy. Goods and services must be used only by the company at the funded production unit in Italy.
  • Small invoices. Invoices under €500 taxable are not eligible.

  The circular sets no rule on where a supplier is located, inside or outside the EU. It does not explicitly allow a non-EU supplier either. Ask Invitalia before you commit, and check whether the July 2026 decree changes anything.

• Startup innovativa. Not funding, so the question does not arise for the build. Outside consultants' R&D costs count towards the 15% R&D test, and the law does not restrict them by location.

• Fondo di Garanzia. The Fund guarantees the loan; it sets no supplier rules. What the money pays for is between you and your bank.

About us. Easify invoices in euros from its registered entity in India, so for an Italian company we are a supplier outside Italy and outside the EU, and the reverse charge normally applies for VAT. Under Smart&Start, the turnkey exclusion and the absence of a stated rule on non-EU suppliers both need confirming with Invitalia before you plan a Smart&Start-funded build with us, or with anyone else outside Italy. If they say a non-EU supplier is not acceptable, you should know that before you sign.

How to plan your MVP budget around it

1. Apply before you incur costs. Smart&Start counts only costs incurred after the application is submitted.
2. Plan your own share. 20% (or 10%) of the plan goes into the restricted account from your own funds.
3. Specify deliverables, not a turnkey package. Given the turnkey exclusion, a contract that sets out the services (design, development, testing, deployment) and their prices is easier to defend than a single lump sum for a finished product. Confirm the form with Invitalia.
4. Write the scope down. A business plan Invitalia can assess, and a quote it can check against market terms, both start from a clear scope. Our €900 MVP Scoping Sprint produces a written scope with a fixed price and timeline, and the €900 is credited against the build if you build with us. That is general advice: no Italian scheme requires or accepts our document specifically.
5. Size version one. Our MVPs typically cost €5,000 to €25,000 over four to twelve weeks; MVP costs in Europe explains what moves the price, and our 12 questions for choosing an MVP agency help you compare quotes.

Products we build are deployed to EU data-centre regions. Our engineering team is in India, so describe that accurately in your privacy notice. We work in English, so Italian copy and legal texts come from you or a translator.

Founding in Spain or France instead? See startup grants in Spain and startup funding in France.

Scheme details checked against official sources on 20 October 2026. Schemes change; confirm with the programme before applying.