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Incentives for Businesses in Malta

Incentives for Businesses in Malta

Investors have always been interested in incentives for their businesses, no matter the country of establishment. Therefore, many who analyze the open market before registering a company can find out if there are dedicated programs that involve incentives. Malta is a country that offers many encouragements for foreign investors who want to position their business, grow when they recover, and enjoy profits. Our company formation agents in Malta offer support in terms of formalities for those who want to open a business in this country and benefit from the incentive schemes offered.

Maltese companies and Business Development Scheme

The Maltese authorities have implemented in 2021 the Business Development program which is aimed at business owners who intend to consolidate their business, expand and become more technological. With this program, participants can access grants in the form of grants or tax credits of up to EUR 200,000. This type of Malta incentives schemes can be used in the following cases:

  • • Office and/or workspace rental costs.
  • • Relocation of employees and related costs for salaries.
  • • Advisory services for business development.
  • • Coverage of costs for obtaining the necessary business license.

These are the most important benefits of the new incentive program offered in Malta. However, in order to qualify for this scheme, you need to work in certain industries, as mentioned in the program. Find out from our team of company formation agents in Malta what are the steps to follow in order to benefit from Malta incentives plans.

Industries where tax incentives apply in Malta

The above-mentioned program is addressed to companies operating in fields such as the development of digital services and systems, manufacturing, research & development, entertainment and video games for international markets, handicraft works, waste management, industrial services and solutions, digitization of processes.

Even if you do not fall into the above-mentioned areas, but the company has potential for development and performance, you can benefit from tax incentives in Malta, with the help of this program. We invite you to talk to our company formation specialists in Malta and find out more about Malta incentives schemes.

Some facts about tax incentives in Malta

An important Malta Incentives schemes refers to the one imposed on the distribution of profits. If they have already been subject to a reduced fee, they will not be charged again. It is important to note that this benefit also extends to the amounts that have not been subject to taxation on the account of investment tax credits and specific tax credits or special incentives valid in Malta.

Other incentives your company can benefit from in Malta

The Maltese authorities have implemented a number of specific programs to help them develop their business in this country, in a safe and advantageous climate. Here are some of these schemes which relate to Malta incentives plans:

  1. Total tax credit not exceeding EUR 250,000 per year for startups, through Seed Investment Scheme. Such a tax credit may be offset against the tax owed by the qualifying investor in respect of any taxable income in the assessment year following the base year in which those investments were made.
  2. Business Start Scheme – for startups that can obtain grants of up to EUR 10,000 in order to grow their business. Viable business plans can even receive EUR 20,000 as Malta incentive.
  3. Smart and Sustainable Investment Grant Scheme – grants of up to EUR 70,000 can be obtained for the digitalized process.
  4. Family businesses can also benefit from cash grants of up to EUR 15,000 for companies offering mediation, advisory, or succession planning services in Malta.

In terms of investments in Malta, foreigners benefit from a stable economic and political environment, where they can develop in a relatively short time. Here are some statistics in this direction:

  1. The total FDI for Malta in 2020 was around USD 241 billion.
  2. According to the 2020 Doing Business report, Malta ranked 88th out of 190 world economies in terms of optimal business conditions and climate.
  3. There are over 31,000 foreign companies registered in Malta, according to the latest data.

Want to know more about tax incentives in Malta and the business opportunities you can have in this country? We invite you to talk to our company formation specialists in MaltaContact us right away.