Malta Enterprise, the government economic development agency tasked with facilitating growth and attracting new foreign direct investment, has launched a new incentive programme specifically designed to support eligible undertakings to participate in a recognised 'accelerator programme' in Malta.
'Accelerate 2024' provides grants of up to €100,000, subject to an overall capping for de minimis assistance of €300,000 over a rolling period of three financial years for a single undertaking, to support ventures that are registered in the European Economic Area, have been operating for less than seven years, and are participating in a recognised accelerator programme in Malta.
The accelerator programme must be a fixed-term, cohort-based programme designed to accelerate the growth of its participants by providing mentorship, resources, funding and networking opportunities. Businesses that do not have a material presence in Malta may only be supported in participating in an accelerator programme being held in Malta.
Eligible applicants must have a viable business concept based on sound technical and scientific know-how and should be in the process of developing the technology into a market ready offering in one of the following areas:
- Manufacturing
- Software development
- Industrial services analogous to manufacturing
- Health, Biotechnology, Pharmaceuticals and Life Sciences
- Other economic activities that are enabled through knowledge and technology, and which have the potential to expand internationally.
Eligible applicants receive grants to cover costs related to the establishing a start-up venture in Malta, the fees charged by the accelerator programme, and other costs incurred during the acceleration period such as corporate service provider fees, rent for business premises in Malta and the rent of necessary plant, machinery and equipment.
Undertakings intending to carry out activities related to construction and real estate, or gaming are excluded. Applications under this scheme must be submitted by 31 October 2030.
Malta Enterprise has been focusing on attracting valuable accelerator programmes in strategic areas, following the success of its first accelerator programmes with Plug and Play and SuperCharger Ventures.
These programmes are designed to accelerate the growth of start-ups already established in Malta, as well as attracting new ones. They also provide participants with access to a global network of mentors and investors, an aspect that is critical given the small size of Malta's local ecosystem.
Malta Enterprise also sponsored the EU-Startups Summit, which was held in Malta for the first time in May, bringing together European entrepreneurs and investors under one roof. Prime Minister Robert Abela said: "While foreign direct investment is and remains important, this does not diminish the importance of local entrepreneurs and professionals."
He referred to the ongoing work to establish a Start-up Framework to pave the way for the country to be the most start-up friendly European country. He said that Malta was changing and improving laws to address the vulnerabilities of start-ups, improve fiscal measures and reduce bureaucratic processes for start-ups operating in Malta. It was no coincidence, he said, that the Europe Start-up Nations Alliance (ESNA) ranked Malta in fourth place among European countries with innovative start-ups.
New businesses that wish to set up in Malta or existing businesses that wish to expand can benefit from a raft of incentive schemes that are intended for every type and size of business:
- Business Development Scheme – to facilitate value-added projects, including new business initiatives, start-up, expansions and transformation activities that contribute to the regional development of Malta.
- Business Start – to provide early seed funding for small start-ups that have an economically feasible business concept to further develop their business proposal prior to seeking further funding or third-party equity.
- EUREKA Instruments – to support the development of rapidly marketable innovative products, processes and services that help improve the daily life of everyday people. Participation in Network projects, European Partnership on Innovative SMEs / Eurostars and Innowwide, Clusters amongst other EUREKA instruments raises participants' international profiles through EUREKA label award, facilitates access to finance for companies involved, offers high degree of flexibility and bottom-up approach to project generation with greater chance of project proposal success.
- Exploring Research Grant – to support businesses in planning R&D initiatives by encouraging businesses to think strategically, consider the market disruptions resulting from the research and looking beyond the organisation for strategic collaborations.
- Family Business Grant – The Family Business Act provides a framework to support family businesses in planning for succession and an effective transfer of ownership. The Family Business Grant provides part financing of advisory and mediation services.
- Innovate – Innovation Aid for SMEs – to facilitate access to expertise and new knowledge towards accelerating innovation, enhancing business performance and driving competitive advantage through engagement of highly qualified personnel, and access to innovation advisory and support services.
- INVEST – Support for Initial Investment Projects – to sustain the regional industrial and economic development of Malta by facilitating initial investments resulting in the setting up of new establishments, the extension of the capacity of existing establishments, diversification of existing businesses, or a fundamental change in an overall process, amongst other activities.
- Micro Invest 2024 – to encourage undertakings, including start-ups, family businesses and self-employed, to invest in their business, to innovate, expand and develop their operations. Undertakings benefitting from this measure will be supported through a tax credit calculated as a percentage of eligible expenditure, which also covers increased in wage costs.
- Patent Box Deduction – the Patent Box Deduction Rules 2019 established a fiscal regime for income arising from patents, similar intellectual property (IP) rights and copyrighted software. The rules additionally provide that small companies may utilise the patent box rules on income from any intellectual property based on an invention that could be patented.
- Qualifying Employment in Innovation and Creativity (Personal Tax) – to facilitate employment of non-residents in roles that are currently not addressed by the local labour market by temporarily easing the tax expenses incurred by such individuals through a fiscal incentive.
- Rent Subsidy – to support businesses engaged in industrial activities that require industrial space for starting a new business, expanding or diversifying existing operations or optimising supply chains. The support subsidises rental of private industrial premises required for long term development strategies and short-term rentals to address specific requirements.
- Repatriation of Persons Established in a Field of Excellence Rules – these guidelines provide a framework for individuals seeking a determination of eligibility for the option provided by S.L Repatriation of Persons Established in a Field of Excellence Rules, as Subsidiary Legislation to the Income Tax Act (CAP. 123) of the Laws of Malta.
- Research & Development – to support industry in undertaking industrial research and experimental development activities that address scientific or technological uncertainties. The knowledge acquired through the research is expected to lead towards the development of innovative products and solutions.
- Skills Development – to support business undertakings to provide training with the scope of developing and updating the skills and knowledge of their workforce thus aiding them to perform more effectively.
- Skills Pass Support – to support licensed operators in the Tourism and Hospitality sector by ensuring that their staff have the necessary basic requirements to retain their employment and continue working in the sector.
- Smart & Sustainable Investment Grant – to provide business funding to support investments that lead to more sustainable processes. These investments are expected to enhance the competitiveness of the enterprises through the optimisation of the use of resources in their activities.
- Start-up Finance – to support small start-up undertakings that demonstrate a viable business concept and show commitment to expand and further develop their economic activity.
By providing vital support to businesses at every stage of their journey, these incentives and grant programmes demonstrate Malta's commitment to economic growth, innovation and entrepreneurship.
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