Incentives

Investment Aid

Qualifying companies are entitled to a tax credit based on an initial investment project which is calculated as a percentage of:

  • expenditure in tangible and intangible assets; OR
  • the wage cost for the first 24 months of the newly created job in relation to the supported investment project.

In exceptional circumstances promising high economic returns, tax credits may be granted in the form of cash.

Access to Finance

Access to Finance schemes are available to manufacturing enterprises and only after Malta Enterprise completes a due diligence exercise on the applicant and the proposed project:

  • Soft Loans: Soft Loans, granted by Malta Enterprise, usually 33% but in any case not exceeding 75% of the cost of plant, machinery and equipment at a reduced rate of interest
  • Loan Subsidies: Malta Enterprise may subsidize the rate of interest payable on bank loans. Loan interest subsidies are not additional to soft loans and may only be granted where a soft loan has not been granted. Such loans are provided by banks or other financial institutions
  • Loan Guarantees: Malta Enterprise can provide a guarantee for up to 75% of bank loans taken by a company to finance acquisition of additional assets to be employed in the company’s business
  • Malta Enterprise may also facilitate access to private equity

Allocation of FactorySpace

factories

Other Benefits

The attractive incentives package also comprises a number of fiscal and financial incentives, such as:

  • Corporate tax rate may effectively be reduced to 5% through a refund of up to 6/7th’s of the amount of tax paid upon distribution of dividends
  • Tax exemption on income from royalties on intellectual property
  • Around 60 Double Taxation Agreements in force
  • Business Development Grants up to €200,000 for high value-adding projects
  • Support to help companies internationalise their business
  • Support for education and training of workforce and initiatives to create Academies