Malta Incentives: Business Development

The Business Development 2021 scheme is available to Maltese companies willing to engage in the development of an undertaking, expansion projects, consolidation of business activities and re-engineering of their business processes. Such a scheme provides aid in the form of tax credits or cash grant of up to EUR200,000 as support for costs such as:

• relocation of personnel costs;
• payroll costs;
• Lease and rental of real estate;
• support and advisory services;
• rights, licenses and certifications; and
• relocation and procurement of tangible assets. 

In order to be eligible for this scheme particularly for the cash grant, the business activity shall include one of the following:

1. manufacturing;
2. management of waste and environmental solutions;
3. research and development activities;
4. provision of industrial services and solutions to manufacturing operations;
5. digitization of processes
6. development of digital service and systems (including video games and entertainment systems) intended for international markets;
7. maintenance, repair and overhaul of aircraft and other electromechanically equipment
8. artisanal works;
9. services that by nature are not limited to geographic scope and are scalable international;

In certain cases, where your business activity does not fall under any of the above-mentioned activities, but the project undertaken will lead to an increase in the overall business performance and innovation, the Corporation may still grant your business support in the form of tax credits.

A business development project may include:

• the initial development of an undertaking setting up operations in Malta;
• an expansion project;
• consolidation of business activities; and
• re-engineering of business processes.

A business development project can take the form of any type of project as long as it ultimately leads to new opportunities, additional employment, increased competitiveness or widening market research.

The Incentive Legislation team at KPMG can provide assistance as regards to whether the eligibility conditions in this scheme are satisfied, offer restructuring advice to ensure eligibility to the scheme, as well as assistance in the application process and the claiming of the funding awarded. In this regard, on the premise that this scheme is applicable to all those undertakings (irrespective of the size) embarking in any sort of business development project, it would be opportune to consider applicability of such scheme prior to investing in Malta and contact the team of experts for further guidance and assistance.