25% income tax reduction on interest on loans taken out to take over a company

The Economic Initiative Act creates an income tax reduction equal to 25% of the interest on loans taken out to acquire, as part of a takeover, a stake in an unlisted company giving a majority of voting rights (Article 199 terdecies-0 B of the General Tax Code). The buyer must keep the shares until 31 December of the fifth year and hold a management position; the company taken over must not exceed €40 million in turnover or €27 million in total assets. Interest is taken into account up to an annual limit of €10,000 for a single person and €20,000 for a couple, for loans taken out from the publication of the Act.