The Maltese government has developed a package of measures aimed at boosting the economy in structurally weak areas. Companies investing in these disadvantaged areas can expect subsidies, grants and tax breaks.

On 27 March 2022, the Maltese Labour Party secured its third consecutive mandate since 2013 and set about implementing its electoral pledges in various policy areas. Its aim is to boost the economy as well as assist companies seeking to invest in Malta. Specifically, the government pledged that it would develop a national plan to identify poorer areas in need of assistance, as the Ecovis consultants know.

Various grants and subsidy measures

Companies operating in these structurally weak areas will benefit from special grants and subsidies, including

• EUR 15,000 grant for start-ups
• 50% rebate on restoration costs up to EUR 15,000
• EUR 30,000 subsidy for first-time buyers of immovable property in certain areas
• 30% subsidy on workers’ salaries, up to EUR 6,000 per worker, for businesses in these areas

The tax breaks and grants for investments in structurally weak regions of Malta are also interesting for foreign investors.

Dr Roberta Avellino Pulé, Senior Legal Consultant, ECOVIS GRC Limited, Mosta, Malta

Tax incentives for investing companies

Other incentives beneficial to companies and other clients interested in investing in Malta include:

• Income tax changes and a reduction in corporate tax from 35% to 25% on the first EUR 250,000 of profit
• 30% subsidy on capital investments, rising to 40% for businesses in Gozo or in the environmental, renewable energy, digital, social and educational sectors
• Tax on share transfers to be slashed from 5% to 1.5%
• Businesses reinvesting their profits will be exempted from paying tax on those investments

For further information please contact:

Dr Roberta Avellino Pulé, Senior Legal Consultant, ECOVIS GRC Limited, Mosta, Malta
Email: roberta.avellinopule@ecovis.com.mt