Malta, known for its strategic location and robust economy, offers a range of investment schemes, grants, and financial incentives to encourage business growth and innovation. These initiatives are designed to support both local and foreign businesses, particularly small and medium-sized enterprises (SMEs), startups, and enterprises operating in key sectors. Understanding the available funding options is essential for businesses looking to establish or expand their operations in Malta.
Investment Schemes and Grants in Malta
The Maltese government, through various agencies such as Malta Enterprise and the Ministry for the Economy, European Funds, and Lands, offers numerous financial support schemes to stimulate economic activity and attract investment. These schemes are often co-financed by the European Union and provide vital support for businesses seeking to enhance their operations, innovate, or expand.
1. Micro Invest Scheme
The Micro Invest Scheme is one of Malta’s most popular initiatives aimed at supporting small enterprises and self-employed individuals. Managed by Malta Enterprise, the scheme provides tax credits to encourage businesses to invest in their operations, improve their premises, and foster business growth.
Eligibility Criteria:
Small businesses and self-employed individuals with fewer than 50 employees.
Annual turnover not exceeding €10 million.
Registered in Malta and compliant with tax and social security regulations.
Benefits:
Tax credits of up to 45% on eligible investments.
Maximum tax credit capped at €50,000 over three years. Businesses with more than 50% female ownership are eligible for an increased tax credit cap of €70,000 over the same number of years.
Increased support for businesses operating in Gozo and female-owned enterprises.
Eligible Expenses:
Renovation and upgrading of business premises.
Purchase of machinery, equipment, and technology.
Investment in IT systems and software.
Wage costs if they increase by 3% from prior year.
2. Business Development and Continuity Scheme
This scheme supports businesses seeking to diversify, expand, or enhance their operations. It provides grants to help companies implement projects that improve competitiveness, sustainability, and market reach.
Eligibility Criteria:
Registered businesses in Malta.
Projects must contribute to business growth and development.
Benefits:
Non-repayable grants or tax credits covering part of the project costs.
Maximum support - €300,000 per Single Undertaking over 3 years covering up to 75% of eligible costs.
Assistance with consultancy fees, equipment purchase, and marketing initiatives.
3. Research & Development (R&D) Grants
To foster innovation, Malta Enterprise provides funding for businesses engaged in research and development activities. These grants aim to promote technological advancements and knowledge transfer within various industries.
Eligibility Criteria:
Businesses conducting R&D projects that lead to new products, services, or processes.
Projects with clear technical objectives and potential market impact.
Benefits:
Financial assistance covering up to 50% of eligible project costs by approving grants or tax credits.
Additional support for collaborative projects with research institutions.
Incentives for projects addressing environmental sustainability or digital transformation.
4. Start-Up Finance Scheme
The Start-Up Finance Scheme is designed to support innovative startups in their early stages of development. It offers equity financing and loan guarantees to help entrepreneurs launch and scale their businesses.
Eligibility Criteria:
Startups registered in Malta within the last five years.
Innovative business models with high growth potential.
Benefits:
Equity financing of up to €500,000, which needs to be re-paid.
Loan guarantees to facilitate access to bank financing.
Business advisory services and mentoring support.
5. EU-Funded Initiatives
Malta also participates in several EU-funded programs that provide grants and funding opportunities for businesses. An example is:
European Regional Development Fund (ERDF): Supports projects related to infrastructure, innovation, and business competitiveness.
Application Process
Applying for investment schemes and grants typically involves the following steps:
Identify the most suitable scheme based on business needs and eligibility criteria.
Prepare a detailed business plan outlining the project objectives, budget, and expected outcomes.
Submit the application through the relevant agency’s online portal.
Await evaluation and approval by the funding body.
Implement the project and submit periodic progress reports.
Challenges and Considerations
While investment schemes and grants offer valuable financial support, businesses should consider the following factors:
Compliance Requirements: Strict adherence to project guidelines and reporting obligations is essential.
Competition: High demand for funding may result in limited availability of certain grants.
Project Viability: Thorough planning and feasibility assessments are crucial for securing funding.
Conclusion
Malta’s investment schemes, grants, and micro-invest initiatives play a pivotal role in fostering business growth, innovation, and economic development. By taking advantage of these financial incentives, businesses can enhance their operations, improve competitiveness, and contribute to the country’s economic progress. Whether through tax credits, direct grants, or equity financing, these schemes offer valuable opportunities for both local and international enterprises.
For more information or assistance on applying for investment schemes and grants in Malta, please contact Quazar on quazaroffice@quazar.mt.
Get in Touch:
Cleaven Abela
cabela@quazar.mt / +356 2388 4600
Jade Sillato
jsillato@quazar.mt / +356 2388 4600
