According to the law, a “business angel” investor is exempted from the tax on revenues from dividends from the company he has invested in, for five years. In addition, when the investor decides to sell his/her shares from the company, he/she is tax exempted of the revenue he/she has obtained (the positive difference between the sale price and the purchase price), if the transfer takes place after three-year period from the acquisition.
In order to benefit from the provisions of the law, the investor should enter the business as an individual and could receive 49 percent of the company he/she is investing in, at the most.
The company he/she invests in obtains the necessary capital to develop the business through an interest-free loan. Besides the money, he/she draws into the company from the investor, experience and know-how.
In its turn, the company the money is invested in should fulfill a series of conditions: to be a limited liability company (LLC), to be an autonomous company, not to be under bankruptcy or liquidation. In addition, it should be a micro-enterprise or a small company (with assets and turnover smaller than EUR 10 million and less than 50 employees). (source: business-review.eu)