Tax Incentives Malta: Benefits for Individuals and Businesses

Support for Initial Investment Projects scheme, administered by Malta Enterprise, is a government incentive designed to support companies undertaking qualifying initial investments in Malta, including the setting up of new operations, expansion or diversification of existing activities, process upgrades, or the acquisition of assets from closing establishments. Support may be granted in the form of tax credits, cash grants, interest rate subsidies, or loan guarantees for SMEs, subject to eligibility and state aid rules.

The Micro Invest scheme offered by Malta Enterprise is a tax-credit incentive aimed at encouraging micro-enterprises, start-ups, family businesses, and self-employed individuals to invest in their business operations by innovating, expanding and developing their activities. Eligible undertakings must, at the point of application, have no more than 50 full-time employees, a turnover or annual balance sheet total not exceeding €10 million in the preceding fiscal year, and at least one employee (full or part-time), and must generally be registered with the VAT Department. The scheme provides a tax credit calculated as a percentage of eligible expenditure, which can include increased wage costs, costs for furbishing and upgrading business premises, investments in machinery and equipment, commercial vehicles, and certain certification costs. Basic tax credits can amount to 45 % of qualifying expenditure, with the potential to increase to 65 % for undertakings based in Gozo, registered as family businesses, or with more than 50 % female ownership, subject to a maximum cap on credits over a three-year period. Applications and claims are submitted through the Malta Enterprise client portal, and deadlines depend on the year in which costs were incurred.

The Support for the Rental & Acquisition of Industrial Space scheme, administered by Malta Enterprise, provides financial assistance to businesses engaged in qualifying industrial activities that need to rent or purchase industrial premises to start, expand, diversify, relocate due to eviction, or move from rented to owned space as part of long-term development strategies. Eligible undertakings may receive a mix of cash grants and tax credits covering up to 50 % of eligible rental or acquisition costs, capped at €50,000 per year and €300,000 over a six-year period, with applications open until 31 October 2030 and submitted through Malta Enterprise’s client portal.

The European Regional Development Fund (ERDF) is one of the European Union’s main funding instruments aimed at promoting economic growth, innovation, and regional development through co-financed investment projects. Under the current 2021–2027 programming period, ERDF funding in Malta supports initiatives focused on competitiveness, digitalisation, sustainability, and SME development, implemented through national operational programmes and targeted calls.

In addition to the above incentives, A2CO provides comprehensive support across the full range of Malta Enterprise schemes, assisting clients in identifying the most suitable incentives based on their business model, investment plans, and growth objectives. A2CO works closely with clients from the initial assessment stage through to application, approval, and post-approval implementation, including eligibility reviews, financial structuring, preparation and submission of applications, liaison with Malta Enterprise, and ongoing compliance, reporting, and claims management. By offering end-to-end advisory and administrative support, A2CO ensures that clients maximise available incentives while remaining fully compliant with Maltese and EU regulatory requirements.