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Malta Enterprise has recently launched a new scheme, the Invest Scheme, which is similar to the Investment Aid 2021 Scheme which closed on 31st December 2021. This Scheme is intended to support initial investment projects through the setting up of new establishments, expansion of existing facilities and diversification of existing businesses. 

 

Timeline

Duration of the Scheme 

The Scheme is applicable from 1st May 2022 and shall remain in force until 31st December 2023. However, the last cut-off date for submission of applications is 30th September 2023. 

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 May 2022 and completed by 31st December 2026, 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: 

  1. 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 Debattista can assist you with the preparation of the application form/s and relevant supporting documentation, submission thereof and follow-ups throughout the project. 

Kris Bartolo

Partner

Rosann Axiaq

Financial Advisory Leader

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