The Law of September 12, 2025, No. 131, published in the Official Gazette on September 19, 2025, introduces important support measures to promote economic development and counter depopulation in mountain areas. The provisions, which came into force on September 20, 2025, provide for tax credits, contribution exemptions, and grants for businesses, professionals, and families operating or relocating to mountain municipalities.
Many of the planned incentives require implementing decrees that will define criteria, operating procedures, and the final list of eligible municipalities.
Territorial scope: which municipalities will be affected?
An upcoming Decree of the President of the Council of Ministers (DPCM) will define the criteria for classifying mountain municipalities based on altitude and slope parameters, approving the official list of affected municipalities. Within this general list, additional DPCMs will identify which municipalities will have access to specific support measures.
Tax credit for young entrepreneurs
The tax credit is aimed at young entrepreneurs under 41 who start a new business in mountain municipalities from September 20, 2025. The incentive applies for the year the business starts and for the following two years, with a reduced tax rate of 15% on business income up to €100,000 (€150,000 for municipalities up to 5,000 inhabitants with linguistic minorities). The credit can be used only through tax offset via Form F24.
Tax credit for green investments in agriculture
Agricultural and forestry entrepreneurs based in mountain municipalities can benefit from a tax credit for investments made between January 1, 2025, and December 31, 2027 aimed at ecosystem and environmental services. The credit amounts to 10% of the investment value, rising to 20% for municipalities up to 5,000 inhabitants with linguistic minorities.
Incentives for first home purchase
Young people under 41 who take out a mortgage to purchase or renovate their primary residence in a mountain municipality can benefit from a tax credit on the mortgage interest. The incentive applies for the year the mortgage is taken out and for the following four years.
Tax credits for healthcare and education personnel
Doctors, nurses, teachers, and other personnel who work in mountain municipalities and relocate to the same municipality or a neighboring one can access a tax credit equal to the lesser of:
- 60% of the annual rent or annual mortgage amount (75% for small municipalities with linguistic minorities)
- €2,500 (€3,500 for small municipalities with linguistic minorities)
Contribution exemption for smart working employees
Companies can benefit from an exemption from employer contributions for employees under 41 who work regularly in smart working from mountain municipalities with less than 5,000 inhabitants. The exemption is recognized on a decreasing basis: 100% for 2026-2027 (maximum €8,000 per year), 50% for 2028-2029 (maximum €4,000 per year), and 20% for 2030 (maximum €1,600 per year).
One-time grant for newborns
A one-time grant is provided for each child born or adopted and registered in the registry office of mountain municipalities with a population not exceeding 5,000 inhabitants, after September 20, 2025. The amount will be defined by decree of the Minister for Family Affairs.
Studio RCG is available to provide clarification on any matter.