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The Italia Startup Visa scheme is an initiative by the Italian Government that grants residency to talented non-EU, non-EEA, and non-Swiss entrepreneurs in order to establish and grow innovative startups in Italy.
What are the main aims and objectives?
The main aim of the Italia Startup Visa is to attract high-tech entrepreneurs from outside the EU/EEA region to Italy in order to foster innovation within the country. In particular the initiative is designed to offer a rapid and digital procedure for applicants, saving them time and making the process more efficient. By doing so, it aims to contribute to the Italian economy, create job opportunities, and strengthen Italy's position as an international hub for innovative businesses. Additionally, the scheme also aims to capitalize on Italy's robust investment incentives and pioneering capital raising tools for startups. 
How does the program work?

The Italia Startup Visa introduced a simplified path to obtain a self-employment visa, for non-EU entrepreneurs who plan to set up an “innovative startup” entreprise in Italy (as defined by Decree-law n.179/2012, art. 25.2). 

The Italia Startup Visa programme allows potential startup entrepreneurs to get the authorisation to collect a self-employment visa – previously a lengthy procedure that must take place in Italy at the Chambers of Commerce, required contacts in the country, knowledge of the Italian legal system, and was subject to regional variation and discretionary evaluation from the Chambers themselves – through an online, fast-track channel (the applicant gets a final reply in less than 30 days), and with no application costs. The requirements are a business plan proposal that fits the requirements that qualify “innovative startups” according to the Italian law (Italian Startup Act), and financial resources, which is to be invested in the future innovative startup, amounting to no less than 50,000 euros. 

The procedure takes place as follows: 

  • The applicant sends his or her application form, passport, demonstration of financial resources and optional additional supporting documentation to the email address italiastartupvisa@mise.gov.it, managed by the DG Industrial Policy of the Ministry of Economic Development; 

  • The application is deferred digitally to the Italia Startup Visa Committee (made up of VCs, business angels representatives, and other key players of the Italian startup ecosystem), which, by majority vote, assesses the suitability of the business plan, its consistency with the educational and employment background of the applicant, and the solidity of the financial resources proposed; 

  • At the same time, the Ministry contacts the Immigration Office at the Central Police Office of the province (intermediate local authority similar to British counties and French départements) where the applicant intends to settle, for a preliminary security check; 

  • When both authorisations are received, the Ministry sends to the applicant a digital copy of a Certificate of No Impediment to the issuance of a 1-year visa for “startup” self-employment. By rule, the procedure never takes more than 30 days, with the possible exception of problematic cases that require multiple rounds of evaluation. 

  • With that certificate, the applicant has a 3-months’ time to go to an Italian diplomatic representation abroad in the country of his or her permanent residency and collect the visa. The visa must then be converted to a residence permit no more than 8 days after the visa holder enters Italy. 

As defined by decree-law 179/2012 (the Italian Startup Act), art. 25.2. The requirements to be registered as a startup company are: 

  • be a company with shared capital (i.e. limited companies), including cooperatives, the shares or significant registered capital shares of which are not listed on a regulated market nor on a multilateral negotiation system. 

  • These companies must also meet the following requirements: 

  • be new or have been operational for less than 5 years; 

  • have their headquarters in Italy or in another EU country, but with at least a production site branch in Italy; 

  • have a yearly turnover lower than 5 million Euros; 

  • do not distribute profits; 

  • produce, develop and commercialize innovative goods or services of high technological value; 

  • are not the result of a merger, split-up or selling-off of a company or branch; 

  • be of innovative character, which can be identified by at least one of the following criteria: 1. at least 15% of the company’s expenses can be attributed to R&D activities; 2. at least 1/3 of the total workforce are PhD students, the holders of a PhD or researchers; alternatively, 2/3 of the total workforce must hold a Master’s degree; 3. the enterprise is the holder, depositary or licensee of a registered patent (industrial property) or the owner of a program for original registered computers. 

Support measures apply to newly established companies for the first 5 years of activity, provided that they meet the aforementioned requirements. 

What is the overall cost?
The Italian government does not publish the exact cost of running the Italia Startup Visa initiative. However, there are no major costs associated with visa schemes outside of the administrative costs of processing applications, conducting background checks and maintaining the program’s infrastructure. Indeed, it is highly likely that any costs that do exist will be outweighed by the economic benefits associated with the program.  
How was it implemented?

The policy was designed and is implemented in collaboration Italian Ministry of Economic Development and the Directorate General for Industrial Policy, Competitiveness and SMEs. Additionally the Italian Startup Visa Committee is composed of six members five executives of representative bodies of the Italian startup ecosystem (university incubators, venture capitalist, business angels, science and technology parks, technological transfer centres), and the Director General of DG Industrial Policy as chairman. 

Other bodies involved: 

Ministry of Foreign Affairs – through diplomatic representation abroad and the national Visa Centre 

Ministry of Interior (Home Affairs) – through local Central Police Offices (Questure), Immigration Offices 

Ministry of Labour and Social Policies 

The legal basis of this policy lies in a provision included in the decree of the President of the Council of Ministers enacted on 15 November 2013, “Provisional programming of entry-flows of non EU workers to Italian territory for non-seasonal work for 2013” (so-called Flows Decree 2013). The decree, on Article 3, introduces a new category of entry to Italy for self-employment: “foreign citizens [intending] to establish innovative startups in accordance with law 221 of 17 December 2012, who meet the requirements envisaged by that same law and who will be entering into a self-employment relationship with the enterprise concerned”. This provision has been renewed, unchanged, in the corresponding decrees on migration inflows for 2014, 2015 and 2016. The policy entered into force in III quarter 2014, after the publication of dedicated guidelines, website and email address. 

General regulations on self-employment visas, whose startup visas remain broadly subjected to, are found in Article 26 of the Consolidated Law on Immigration (Legislative Decree 286 of 25 July 1998), Article 39 of Presidential Decree 394/1999 and Inter-ministerial Decree 850/2011. 

What impact has been measured?

Until 2020, the Italian Ministry of Economid Development published statistics on the Startup Visa each quarter. The numbers as of January 1st 2020 were: 

  • 481 applications were received 

  • 250 applications were approved with 184 rejected and 47 withdrawn 

  • Approval rates stood at just 52% 

  • The most common reason for rejection was “weakness of business model” which accounted for 45% of declines 

  • A further 38% of declines were due “the lack of innovative value of the business project” 

  • The highest rates of acceptance were from Brazilians (83%), Ukrainians (81%) and Japanese (80%) 

  • The lowest rates were from Pakistan (10%) and India (20%) 

  • Visa holders had so far established 40 new companies while others had joined 19 existing innovative startups. The remainder were in the process of establishing their companies 

What lessons can be learned?

While the issuance process for entry visas has been drastically simplified, regulations on residence permits – outside the domain of competence of the Ministry – have remained unchanged. The latter procedure takes a longer time to be completed: until then all of the formal steps required to incorporate the new business cannot be taken. The applicants have also experienced problems in everyday life activities – e.g. booking an apartment or hiring a car – during this waiting period. A few visa holders have renounced their visa to start the business and moved elsewhere. 

The applicants often choose Italy out of individual initiative and they have little or no previous contacts with the Italian startup ecosystem. The Italia Startup Visa is referred to as a “programme”, instead of a “procedure”, because the support initiatives extend beyond the issuance of the visa: visa holders are encouraged to see the program as a “help desk” and arrange other kinds of information activities, such as a webinar cycles.  

CURATED BY

Roberto Geno Volpe

Junior policy officer
Italian Ministry of Economic Development
Italy