Smart&Start Italia explained: Italy's interest-free loan for innovative startups
Italy will lend a tech startup most of a 24-month plan at zero interest. Here is what it takes, especially if you are setting up from abroad.
What is Smart&Start Italia?
It is Italy's main public loan for early-stage tech companies, created by a ministerial decree in 2014 and updated several times since, most recently by a decree of 13 July 2026. The Ministry of Enterprises (MIMIT) sets the rules; Invitalia, the national development agency, assesses business plans, signs the loan contracts and pays out against invoices.
1,444
Can founders from outside Italy apply for Smart&Start?
Yes. According to Invitalia's eligibility page, three kinds of applicant qualify besides existing Italian startups:
- teams of individuals who intend to set up an innovative startup in Italy, even if they live abroad; the ministry says the company must then be incorporated within 30 days of the admission notice;
- non-EU citizens holding an Italian startup visa;
- foreign companies that commit to establishing a seat in Italy.
Existing companies must be registered as innovative startups and incorporated no more than 60 months earlier. That means meeting every condition of Italy's Startup Act, including the 2024 rule that the business must not mainly sell consultancy or agency services; our guide to Italian innovative startup requirements walks through them. On size, the sources differ: the ministry's page, updated in September 2026, says micro, small and medium enterprises, while Invitalia's pages still say small. If you are close to the small-company limits, ask Invitalia before you write the plan.
What are the loan terms?
- Plan size: €100,000 to €1.5 million.
- Coverage: 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 returning from at least three years of research or teaching abroad.
- Cost: zero interest and, according to Invitalia's description of the benefits, no collateral.
- Repayment: up to ten years, starting twelve months after the last instalment is paid out.
- Southern bonus: startups in Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia and Sicily, and in the central Italy earthquake area, repay only 70%.
- Timeline: spending must start after you apply and finish within 24 months of signing the contract.
Two practical consequences: you fund the remaining 10% or 20% yourself, and work done before the application does not count. If the build has already started, agree with your accountant what stays outside the plan.
What can the money pay for?
| Category | Examples | Notes |
|---|---|---|
| Equipment | New technological plant, machinery, hardware and software components | Must be consistent with the business plan |
| Intangibles | Patents, trademarks, software licences, certifications, know-how | Useful if IP is your innovation test |
| Services | Design, development, customisation and testing of IT solutions; specialist technology consulting; incubators and accelerators; marketing and web marketing | Product development by an outside team fits here |
| People | Staff and collaborators working on the plan | Reimbursed at standard costs |
| Working capital | Raw materials, services such as hosting, rented assets | Up to 20% of the other costs, according to the ministry |
The full list is on Invitalia's eligible costs page. For a sense of how much software budget to plan, our guide to MVP development cost explains what drives the price.
How can part of the loan become a grant?
By bringing in private equity. Under the debt conversion rules, part of the loan can be converted into a non-repayable grant worth up to 50% of what outside investors or individual shareholders put in, capped at 50% of the total support. The investment must be in cash, at least €80,000, made within five years of the grant decision and held for three years; outside investors must not end up with a majority. The converted amount sits in a locked reserve for five years. In other words, an early angel round also shrinks your debt: see the seed round explained.
How does the application work?
Applying, step by step
Sort out Italian digital identity early
Access requires SPID, CNS or CIE (Italian digital identity systems), plus a digital signature and a certified email address (PEC). For founders abroad this is often the slowest step, so start here.
Register the company on the platform
Since 3 November 2025, companies that already exist must first enrol in the platform's company and delegation module.
Write the business plan online
Plan, costs by category and attachments, in the format set out in Invitalia's application manual.
Submit and get your reference number
Applications are first come, first served, with no ranking, until funds run out. Invitalia's application page has the details.
Prepare for the interview
The merit review includes an interview with Invitalia's experts and normally ends within 60 days, unless they ask for more documents.
Plans are scored on four criteria: the team's skills, how innovative the idea is, economic and financial sustainability, and technical and operational feasibility. Working with research bodies, incubators, accelerators or digital innovation hubs earns extra points.
What changed in 2026?
The decree of 13 July 2026 aligns the scheme with the 2024 definition of innovative startup, simplifies plan assessment and reworks the terms for converting the loan into a grant. The ministry now describes €10,000 of technical and management mentoring for startups up to 36 months old, while Invitalia's pages still describe mentoring for startups under one year. Until the two match, rely on the version of the call you apply under and confirm with Invitalia.
If Smart&Start does not fit, or you want to combine it with something else, our map of startup funding in Italy lays out the alternatives.
Frequently asked questions
Is Smart&Start Italia a grant?
No, it is a zero-interest loan. Part of it becomes non-repayable in two cases: for startups in the eight southern regions, which repay 70%, and when private investors come in, through the conversion of up to 50% of what they invest.
Do I need an Italian company before applying?
No. A team of individuals can apply, even from abroad, and incorporate after admission; the ministry sets a 30-day deadline from the admission notice. Foreign companies must commit to opening a seat in Italy.
How long does Invitalia take to decide?
Invitalia says the assessment ends within 60 days unless it requests more documents. Applications are handled in order of arrival, so a complete file saves time.
Can Smart&Start pay an outside team to build the product?
Design, development, customisation and testing of IT solutions, and specialist technology consulting, are eligible costs. Spending must start after the application and be fully documented.
Can an innovative SME apply?
No. The scheme is for registered innovative startups and teams that will form one. Our comparison of innovative startups and innovative SMEs explains the difference.
Sources
- MIMIT, Smart&Start Italia (pagina aggiornata il 02/09/2026, con il DM 13 luglio 2026) (19 October 2026)
- Invitalia, Smart&Start Italia: cos'è (dati al 31/08/2026) (19 October 2026)
- Invitalia, Smart&Start Italia: a chi si rivolge (19 October 2026)
- Invitalia, Smart&Start Italia: le agevolazioni (19 October 2026)
- Invitalia, Smart&Start Italia: cosa finanzia (19 October 2026)
- Invitalia, Smart&Start Italia: come presentare la domanda (19 October 2026)
- Invitalia, Smart&Start Italia: conversione del debito, come funziona (19 October 2026)
- Normattiva, DL 179/2012, art. 25 (definizione di startup innovativa) (19 October 2026)
Figures and definitions checked on the dates shown.
