Malta Incentives: Invest

The Invest - Support for Initial Investment Projects is a scheme (the ‘Scheme’) available to enterprises designed to facilitate and incentivise initial investment projects in Malta, including the setting up of new establishments, the extension of the capacity of an existing establishment, the diversification of the current processes of an establishment, and any fundamental changes in the overall process of the establishment. 

This Scheme is applicable to companies, partnerships, co-operatives, family businesses, or similar set-ups operating from Malta and incorporated in the European Union, which may include an undertaking newly set up for the implementation of a new project.

The Scheme provides aid in the form of tax credits, cash grants, loan interest rate subsidies and/ or loan guarantees, or a combination of these form of aids, depending on certain qualifying criteria.

The guidelines underlying this Scheme have widened the scope of qualifying activities in certain economic sectors, while easing some conditions previously applicable in other sectors. Qualifying activities include, but are not limited to the following *:

The qualifying expenditure which form the basis for funding may consist of either investment in tangible and intangible assets, or the wage costs of new employment created within three years of the completion of the project. The amount of tax credits or cash grant to be awarded is calculated as a percentage of the qualifying expenditure, ranging from 10% - 35% depending on the size, and of the undertaking, and the location of the business where the initial investment project is carried out.

The determination of the size of the undertaking requires a group-wide analysis with reference to linked and partner enterprises, rather than considering the applicant undertaking in isolation. This exercise, which can be quite complex, is central to the application process as it impacts eligibility and aids intensity.

The interplay between the tax credits and the Maltese general tax system comprising where applicable, the tax refund system and the notional interest deduction, results in further benefits for the qualifying company, including a very beneficial effective tax rate, which can go down to 0%, together with an increase in the longevity of the tax credits.

Cut off dates are currently available until 30 September 2026.

Our Incentive Legislation team can provide a holistic service with regards to the applicability of the Scheme and its interplay with Maltese income tax legislation and other incentive schemes. This includes the analysis of whether the eligibility conditions are satisfied, restructuring advice to ensure the eligibility, as well as assistance in the application process and the claiming of the funding awarded.