Duration of the Scheme
The Scheme is applicable from 1st January 2024 and unless reviewed or updated, shall remain in force until 31st December 2026. However, the last cut-off date for submission of applications is 30th September 2026.
Qualifying Activities
The investment must relate to one or more of the qualifying activities, such as manufacturing, pharmaceuticals, hotels & guest houses and education & tuition. The full list of qualifying activities is listed in the guidelines of the Scheme.
Eligible Entities
Small, medium-sized and large enterprises, having their operations carried out in Malta. Entities which are engaged in provision of gaming services and financial services, holding a MGA or MFSA licence respectively, are not eligible to benefit from this Scheme.
Eligible Projects
Support may only be awarded for eligible investment projects commencing on or after 1st January 2024 and completed by 31st December 2027, for projects approved by 31st December 2023.
i. With respect to SMEs, the Initial Investment Project in tangible and intangible assets shall relate to:
- setting-up of a new establishment, extension of the capacity of an existing establishment, diversification of the output into products not previously produced by the entity or a fundamental change in the overall existing production process; or
- acquisition of assets belonging to an establishment that has closed down.
ii. With respect to Large Enterprises, the Initial Investment Project in tangible and intangible assets shall relate to a new economic activity.
Forms of Aid
Support may be awarded in the form of:
- tax credit,
- cash grant,
- loan interest subsidy, or
- loan guarantee (only for SMEs).
The type of aid to be granted to the applicant is optional, however, the eligible options depend on the type of the qualifying activity as highlighted in the guidelines. For example, a manufacturing company can choose between all four forms of aid; whilst an educational institution can only benefit from tax credits.
Maximum Support
| Size of Applicant (Activity) | Investment project in specific assisted areas | Investment project in Gozo and Comino | Investment project in other areas |
| Small undertaking excluding hospitality sector | 30% | 35% | 20% |
| Medium-sized undertaking excluding hospitality sector | 20% | 25% | 10% |
| Large undertaking | 10% | 15% | N/A |
| Small and Medium Sized Enterprises (SMEs) operating in hospitality sector | 15% | 15% | 10% |
Eligible Project Expenditure
Qualifying expenditure consists of:
- Acquisition of qualifying tangible and intangible assets, including:
- Land, buildings, plant, machinery and equipment.
- Motor Vehicle which is required for conducting the qualifying economic activity of the entity and constitutes part of the initial investment project.
- Finance lease of plant or machinery with an obligation for the beneficiary to purchase the asset upon expiry of the lease.
- Intangible assets such as patents, licences, know-how or other intellectual property, provided that these are used exclusively in the entity receiving the aid.
Or
2. estimated wage costs arising from job creation as a result of the project, calculated over a period of two years.
Zampa Partners can assist you with the preparation of the application form/s and relevant supporting documentation, submission thereof and follow-ups throughout the project.
The information provided in this article is accurate as of the date of last update. Please note that the scheme/s discussed may be subject to changes or expiration within a year. Readers are encouraged to verify the status of the scheme with the relevant authorities or official websites for the most up-to-date information.
Last update: 7th October 2024
Kris Bartolo
Partner
