A Summary of Malta's Incentive Schemes in 2024

Explore Malta's incentives for businesses and individuals. From grants and tax credits to funding opportunities, these schemes foster innovation, growth, and sustainability.

Growth

The Application for Industrial Space for Small Business Activities is available for small businesses, including companies, partnerships, and sole traders, that employ fewer than 10 employees and require industrial space for operations, storage, offices, or other trading activities. The target applicants are small-scale businesses with less than 10 employees. This measures includes industrial space up to 300 sqm. Applications must be submitted using the form issued by Malta Enterprise and must include the last three tax returns, a plan layout, a bank reference, and the incorporation document or partnership contract.


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Accelerate supports undertakings in their initial 7 years in financing their participation in an Accelerator Programme recognised by Malta Enterprise. This measure is intended for ventures with potential for growth, that have a viable business concept based on sound technical and scientific know-how and that are in the process of developing the technology into a market ready offering. The aid consists in a grant up to Eur100,000 and the application deadline is 31st October 2030.


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The Business Development Scheme aims to facilitate value-added projects, including new business initiatives, start-up, expansions and transformation activities that contribute to the regional development of Malta. Supported projects are expected to lead to new business opportunities, creation of skilled and highly-skilled employment, increased competitiveness or widening market reach. The aid consists in a cash grant or tax credits amounting to 75% of eligible costs, capped at eur300,000 over 3 years.


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This measure is intended to sustain the regional industrial and economic development of Malta by facilitating initial investments. Eligible investments must result in one of the following activities: setting up of a new establishment, extension of the capacity of an existing establishment, diversification of existing business, fundamental change in an overall process or acquisition of assets of an establishment that would have closed down. The application deadline is 30th September 2026 and the project must have started after 1st January 2024.


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MicroInvest is a scheme that provide aid in the form of tax credit to applicants investing in eligible costs. The tx credit (45% of eligible costs and additional bonus of 20% for undertakings operating from Gozo) is capped to € 50,000 over any period of 3 consecutive fiscal years (increased to € 70,000 if operating in Gozo and is classified as a family business or is female-owned). One application per calendar year is permitted including costs incurred during the previous year.


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Through the Skills Development scheme business undertakings may be supported to provide training with the scope of developing and updating the skills and knowledge of their workforce, thus aiding them to perform more effectively. The aid can be in the form of cash grants or tax credits or a combination of both.


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The Rent Subsidy scheme is intended to support businesses engaged in industrial activities, that require industrial space for: starting a new business, expanding or diversifying operations, or optimising supply chains. The support subsidises rental of private industrial premises required for long term development strategies and also short-term temporary rentals to address specific requirements. Eligible costs shall only include the rental of the required space and must exclude tax and other services (such as cleaning, reception and security services) that may be included with the rental agreement.


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Education

GET QUALIFIED is an initiative that supports the personal development of individuals for the achievement of qualifications and certifications required by industry. The incentive is applicable to individuals following a course of studies leading to a certification, diploma, degree or post-graduate degree courses.


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Employment

This measure facilitates employment of non-residents in roles which are currently not addressed by the local labour market by temporarily easing the tax expenses (15% tax rate for a consecutive period of up to 4 years (additional application for 5 more years) incurred by such individuals through a fiscal incentive.

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Entrepreneurship

Business Start provides early seed funding for small start-ups that have an economically feasible business concept to further develop their business proposal prior to seeking further funding or third-party equity. The grant is up to € 10,000 (in tranches).


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Start-up Finance aims to support Small Start-up Undertakings that demonstrate a viable business concept and show commitment to expand and further develop their economic activity. The aid consists with a repayable advance (support between € 500,000 and € 1.5 Million) with a premium of 2% above the ECB's base rate and a minimum of 10% pre-tax-profit per annum must be repaid.


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Research & Innovation

EUREKA supports the development of rapidly marketable innovative products, processes and services across all technological sectors through collaborative Industrial Research or Experimental Development projects up to 36 months in duration involving partners from Malta and other EUREKA countries. The aid consists in a grant of € 60,000 (Innowide)


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The scope of Exploring Research Grant is to support businesses in planning better their R&D initiatives, with the aim of achieving a comprehensive feasibility study. Such feasibility study could form the basis of an application for support through other measures offered by Malta Enterprise to carry out R&D projects.


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Innovate aims to support SMEs in carrying out projects leading to product, process and organisational innovation through collaboration with Research & Knowledge-dissemination Organisation or through innovation advisory services through funding for the secondment of Highly Qualified Personnel, and access to innovation advisory and support services. The grant can be up to 50% of the costs (capped at € 250,000).


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The Patent Box Deduction Rules, 2019 establishes a fiscal regime for income arising from patents, similar intellectual property (IP) Rights and copyrighted software. The rules additionally provide that small companies may utilise the patent box rules on income from any intellectual property based on an invention that could be patented. A tax payer qualifying for the Patent Box deduction will be entitled to deduct a percentage of its income from taxable income. This deduction will be adjusted depending on the percentage resulting from dividing the qualifying IP expenditure by the total expenditure related to the particular IP.


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The R&D aid supports enterprises involved in Industrial Research and Experimental Development activities, leading towards the development of innovative products and solutions. The aid is in the form of cash grants, tax credits or combination of both, calculated as percentage of the cost incurred, dependent of type of research and size.


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Sustainability

The Green Mobility Scheme shall support the transition to more sustainable transportation by accelerating the uptake of electric vehicles used in business for the transportation of goods and people, by supporting investment in recharging infrastructure required for vehicles which are an integral part of a business activity. The scheme shall also support leasing of clean or zero-emission vehicles.


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The Smart and Sustainable Investment Grant provides business funding to support investments that lead to more sustainable processes. These investments are expected to enhance the competitiveness of the enterprises through the optimisation of the use of resources in their activities.


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