The government has introduced new incentives for green and digital self-employment, dedicated to those who start a business in Italy. This measure is aimed at young people under 35 who can obtain a monthly economic contribution of 500 euros and the exemption from paying 100% of social security contributions if employees are hired for the activity started
.
The incentives were introduced by the Cohesion Decree, converted into law on July 2, 2024.
In this guide, we explain in a clear and detailed way what 2024 green and digital self-employment incentives are and how they work
.
Table of Contents:
What are green and digital self-employment incentives 2024
Green and digital self-employment incentives are aid aimed at young unemployed people under the age of 35 who decide to start a business in Italy in strategic sectors for the development of new technologies and the digital and ecological transition, starting from July 1, 2024 and until December 31, 2025.
Established by the Cohesion Decree 2024, the aid makes it possible to obtain for a maximum period of three years:
- an economic contribution for the start of the business equal to 500 euros per month recognized by the INPS
Who are they entitled to
Green and digital self-employment incentives are for unemployed young people under the age of 35 who want to start a business on Italian territory in the sectors of ecological, digital transition or for the development of new technologies. An inter-ministerial decree will define the specific criteria for qualifying a company as “green and digital”, in line with the 2021 — 2027 Partnership Agreement and the 2021 — 2027 National Youth, Women and Work Program
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The decree of the Minister of Labor and Social Policies, adopted in agreement with other competent ministers, will also establish the procedures for accessing benefits, as well as the terms and methods for submitting communications for access to aid.
How green and digital self-employment incentives work
Green and digital self-employment incentives provide for two types of aid:
- Contribution for the activity equal to 500 euros per month: it must be requested from the INPS, it has a maximum duration of three years and cannot be recognized after December 31, 2028. It is disbursed in advance by the institution and liquidated annually for the number of months involved in carrying out the business activity. It does not contribute to the formation of income pursuant to the Decree of the President of the Republic of 22 December 1986, n. 917.
- Exemption from paying 100% of social security contributions: this relief is recognized for every new hire under 35, with a maximum limit of 800 euros per month for each employee hired indefinitely from July 1, 2024 to December 31, 2025. This incentive also has a maximum duration of three years and cannot be enforced beyond December 31, 2028
.
Details on the tax exemption
The Cohesion Decree 2024 specifies that:
- The relief does not include contributions for pension benefits paid by the employee in addition to the premiums and contributions due to INAIL
- The exemption does not apply to domestic employment relationships and apprenticeship relationships
- for employers who make use of the exemption, when determining the down payments due for the current tax period as of December 31, 2028, what would have been determined without the 2024 incentives is assumed as the tax for the previous period
- the exemption cannot be combined with other exemptions or reductions in financing rates provided for by current legislation, and is compatible with the increase in the cost allowed as a deduction in the presence of new hires
How to apply for green and digital self-employment aid
The methods for requesting green and digital self-employment incentives have not yet been clarified. You will probably need to submit a special application. The procedures for implementing the aid package will be defined by a decree of the Minister of Labor and Social Policies and the Minister of Economy and Finance, in agreement with other competent ministers. As soon as available, we will update this article and report it through our newsletter
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When they arrive
Green and digital self-employment incentives should be operational by the end of 2024. However, it will be necessary to wait for the decree implementing the measure and the authorization of the European Commission
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Resources
The measure is financed for the exemption with amounts equal to:
- 5 million euros for the year 2024
- 39.5 million euros for the year 2025
- 58.8 million euros for the year 2026
- 53.7 million euros for the year 2027
- 19.3 million euros for the year 2028
For INPS contributions, the measure is financed with amounts equal to:
- 1.8 million euros for the year 2024
- 14.1 million euros for the year 2025
- 21 million euros for the year 2026
- 19.2 million euros for the year 2027
- 6.9 million euros for the year 2028
Conclusion
The
2024 green and digital self-employment incentives offer significant opportunities for young people who wish to start an entrepreneurial activity in the strategic sectors of the ecological and digital transition. It is important to follow regulatory updates and find out about the requirements and methods of access to be able to benefit from
this aid.
