The essential benefits of the law
Individuals can get up to a 45% tax cut if they invest directly in new shares of a startup that is less than 4 years old. The startup can receive a maximum of 250.000 euro of capital for which this law is valid, and the tax benefit per investor is limited to an investment of 100.000 euro per year (for all the investments made during that year).
For every startup this is an interesting way to attract funds, since the investors are already certain of 30-45% of gains, thanks to the tax benefit.
There are more limitations and small caps.
This is the essence:
- small (up to 30% tax benefit) and micro startups (up to 45% tax benefit)
- participation in the share capital of max. 100.000 euro per individual per year
- maximum 250.000 euro investment with tax shelter benefit per legal entity