Malta is a popular choice in Europe for entrepreneurs and companies looking to set up a business on the island. One of the more favourable reasons is the Malta Tax benefits and opportunity for businesses to reduce their effective rate of corporate tax to 5%, making it one of the lowest in the EU. However, the Malta Government has positioned itself as a pro-business island offering incentives and support for businesses setting up in Malta. Thus, in this article, we will explore if your business can qualify for these incentives as well as what support your business can receive in Malta.

Firstly, Malta Enterprise is responsible for offering support measures and incentives for businesses in Malta. Malta Enterprise develops incentives for the promotion and expansion of companies to improve their competitive edge within the global market. Malta Enterprise actively engages with many industries including manufacturing, ICT development activities, call centres, healthcare, pharmaceuticals, biotechnology, aviation and maritime services, education and training and logistics, to name a few. 

Malta Enterprise offers significant incentives to SME Startups and Businesses. 

Aid for Research and Development Projects (Tax Credits)

This incentive measure allows companies to claim tax credits on costs incurred directly or indirectly in carrying out an R&D project or projects within the field of science or technology through the resolution of scientific or technological uncertainty.

Innovation Aid for SMEs

This measure allows for part of the costs incurred for the loan of large projects and Research and Knowledge-Dissemination Organisation to be to recovered in the form of tax credits and shall be capped at 50% of the eligible costs.

Start-up Finance 2020

This measure aims to support Small Start-up Undertakings that demonstrate a viable business concept and that exhibit commitment to expand and further develop their economic activity.

Brexit Support Scheme

The incentive aims to assist enterprises to analyse the possible effects of Brexit on their business and to develop business strategies to mitigate the impact of Brexit and maximise the business opportunity that Brexit might create.

Business START (B.Start)

Malta Enterprise, via Business START, is offering seed funding for startups. The measure intends to support Small Start-up undertakings that have a viable business concept and are in the early stage of its development.

Skills Development Scheme

Through this scheme, Malta Enterprise shall support training and knowledge transfer initiatives that will assist employees in acquiring new skills, know-how and knowledge.

Startup Advance

Startup Advance intends to support small startup undertakings that are in the process of consolidating a business operation that has demonstrated market potential and is deemed as economically feasible and innovative by the Corporation.

Development of Video Games with a Cultural Dimension

The scheme targets limited liability companies engaged in the development of video games with cultural content. The maximum support per single undertaking may not exceed €200,000 over three consecutive fiscal years. It shall cover up to 30% of the qualifying costs incurred for the development of the video game.

Micro Guarantee Scheme 2017-2020

The Micro Guarantee Scheme has the objective to accelerate growth by facilitating access to debt finance for smaller business undertakings.

Business Development and Continuity

The programme intends to facilitate value-added projects that are expected to contribute to the regional development of Malta and to support existing undertakings sustain operations during restructuring.

Allocation for Industrial Land application and Application for Industrial Space for Small Business Activities

Distribution of industrial spaces more than 300 sqm and Industrial Space for Small Business Activities

Investment Aid for Energy Efficiency Projects

Assistance to facilitate investments in technological solutions that provide higher energy efficiency and contribute directly towards a reduction in the energy requirements of the beneficiaries in the form of a tax credit.

For more information on business support and incentives in Malta, you can visit the Malta Enterprise website.

Can we help?

If you’re considering starting a company in Malta and you need assistance with the Company Formation and Registration as well as other back-office services, we can help. Papilio Services is one of Malta’s leading Corporate Services Providers, and we offer a 360′ support to businesses that need our assistance. Contact us today if you would like to discuss your needs, plans, and what support you require. 

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