Do you have an Initial Investment Project?
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.
What is the benefit?
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.
Are you engaged in a qualifying activity?
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 *:
Manufacturing
Repair, Overhaul or Maintenance
Industrial Services
Information Technology - Computer Programming
Information Technology - Data Processing and Hosting Facilities
Information Technology - Data Processing Services
Information Technology - Electronic and Mobile Platforms
Call Centre Activities
Research and Development, Design, and/or Innovation
Waste Treatment
Environmental Solutions
Life Sciences
Pharmaceuticals
Audio-Visual Productions
Audio Recording
Digital Video Games
Education and Tuition
Human Inpatient and/or Day Care Services
Logistics
Industrial Packaging
Hotels and Guest Houses
Knowledge Intensive Services
Restoration
Entertainment and Recreational Facilities
*May be subject to further conditions including a qualifying NACE Code.
Qualifying expenditure
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.
What is the size of the undertaking?
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.
Interplay with the Maltese general tax system
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.
Application deadline
Cut off dates are currently available from now until 30 September 2026.
How can we help?
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.
Contact Us
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.