Resident who invests in innovative startups located in Ticino, will receive a special taxation on such investment and, at the same time, the startups will benefit from a lower capital tax rate.
The latest tax reform allows the investors resident in Ticino who invest at least 50’000 Swiss francs in an innovative startup located in the Italian speaking Canton, to exempt the sum from their tax income. Therefore, such amount will be taxed separately with a rate of 1% up to a maximum of 80% of the taxable income, with a cup that will be defined by the Ticino’s State Council.
Furthermore, if an innovative startup should receive a donation from a Ticino taxpayer, the tax authorities will not levy any gift tax on such amount.
With this reform also the capital tax rate of the startups will be reduced from the ordinary 1.5% to 0.01%.
Through the reform, the Canton hopes to make the startups, that generally tend to have little or no profit, more attractive during the investment rounds. To benefit from these tax breaks however, startups must prove themselves to be innovative.
The special tax treatment is part of a tax package approved by the voting population of the Canton Ticino on Sunday 29 April 2018.