The Business Development Scheme

On 19th April 2024, Malta Enterprise published a new incentive called the Business Development Scheme. This schemes aims to facilitate value-added projects, including new business initiatives, start-up, expansions and transformation activities that contribute to the regional development of Malta. It will remain open until 30th September 2030.

Supported projects are expected to lead to new business opportunities, creation of skilled and highly-skilled employment, increased competitiveness or widening market reach.

Who is eligible for this scheme?

The measure does not apply to enterprises that generate revenue:

  • directly or indirectly through gambling activities;
  • the sale of real estate as a business activity;
  • wholesale or retail activities
  • the provision of financial services.

Applicants must not be defaulting on Income Tax, VAT and Social Security payments.

Applicants must be eligible to receive de minimis aid.

Eligible projects must address one of the following categories:

  • Setting-up, expansion and modernisation of an eligible activity

This includes the setting up, expansion and modernisation of facilities for carrying out the following activities:

a) manufacturing;

b) industrial service analogous to manufacturing;

c) maintenance repair and overhaul of electro mechanical equipment, air craft and sea going vessels.

d) software development (including video game development);

e) the development and/or provision of digital solutions intended for an international market;

f) waste recycling;

g) product development and design;

h) activities related to development and manufacture of pharmaceuticals and medical devices.

i) filming, recording and editing of audio and visual content.

j) research and development;

  • Environmental Actions

Projects to improve environmental protection and performance. Such projects shall result in a positive environmental outcome such as the minimisation of waste, a reduction in carbon footprint, an increase in recycling and reuse, or the remediation of advanced human activities.

Project should be supported by an independent report compiled by an expert advisor, indicating the objectives of the project and the envisaged environmental gains.

  • Innovative New Business

The setting up of new business operations (by start-ups or established undertakings) that provide products or services which are not readily available in the local market and can demonstrate through a business plan, a drive towards international growth in the forthcoming 3 years.

  •  Facilitate Employment of Workers with Disabilities

Projects approved by the CRPD that facilitate the integration of disabled persons in the workplace, that extend beyond the requirements imposed by the applicable legislation.

  • Collaborative Projects

Projects submitted by business associations (irrespective of their legal form) that lead to solutions of common benefit to multiple undertakings (such as coordinated employee transport, industrial zone surveillance, or consolidated warehousing etc) shall be considered for support in the form of cash grants or tax credits. Any aid shall be limited to the activities of the business association and may not be transferred to the participating business.

  • Upgrading for Facilities (Industrial Sites and Hotels)

Projects for the upgrading of industrial facilities and hotels (having a valid and active MTA licence) that result in an improvement in the services provided from the facility / establishment and that are not considered to be part of the upkeep of the facility / establishment.

  • Establishing and upgrading Artisanal Facilities

Projects for establishing and upgrading facilities that incorporate artisan and design workshops. The Corporation shall consider projects that are focused on creative products and that demonstrate a potential to reach international clients.

  • Business Re-engineering and Digital Transformation

The carrying out of a review of business processes and re-engineering projects leading to enhanced use of digital technology. Enterprises implementing such projects shall be expected to achieve higher efficiency by adopting technological solutions in their business.

  • Access to Markets and Certification

Projects leading to recognised certifications that are beyond the legal requirements of the applicant enterprise and are intended to achieve further economic development, business growth or enhanced environmental protection.

What costs are eligible under this scheme?

Eligible costs include:

  1. Wage Costs
  2. Lease and Rental of industrial and non-residential properties
  3. Shared industrial or business facilities
  4. Advisory Services
  5. Procurement of Tangible Assets
  6. Procurement of Intangible Assets
  7. Digital Technologies
  8. Construction, and related services
  9. Relocation of employees

How is assistance granted?

The maximum support that can be claimed under this scheme is €300,000 per Single Undertaking over 3 years covering up to 75% of eligible costs.

Assistance in granted in the form of cash grants and tax credits.

If you require further guidance or details in relation to this process, please do not hesitate to contact us so that we may assist you.

Get in touch

Want to know more?