Micro Invest Scheme 2026 –2030

The scheme will apply as from 2026, with applications being accepted from 1 January 2027.

The scheme is administered by Malta Enterprise and provides assistance in the form of a tax credit to eligible undertakings, including self‑employed persons, supporting investment, innovation, and business growth in Malta and Gozo.

The Micro Invest Scheme is aimed at micro undertakings and self‑employed persons carrying out an economic activity in Malta or Gozo. Assistance is granted through tax credits on qualifying expenditure related to:

• Wage increases and employee retention,
• Capital investment,
• Digital transformation, and
• Refurbishment of business premises.

Updated guidelines issued by Malta Enterprise provide further clarification on implementation, documentation requirements, deadlines, and procedural matters.

Who is eligible?

Eligibility conditions remain unchanged under the Micro Invest Regulations 2026. Eligible applicants include companies, partnerships, and self‑employed individuals, provided that the undertaking:

• Employs at least one individual, on a full‑time or part‑time basis;
• Employs no more than 50 full‑time employees; and
• Is VAT registered, unless specifically exempt under VAT legislation.

What are the aid intensities?

Under the revised framework, aid intensities have been significantly increased:

• 65% of eligible expenditure for undertakings operating from Malta; and
• 85% of eligible expenditure for undertakings operating from Gozo.

This marks a notable increase from the previous rates of 45% and 65%, respectively.

What is the capping of this aid?

The maximum tax credit that may be awarded over a three‑year period has been revised upward. The base cap now stands at €65,000, with an additional €20,000 available where the undertaking falls within any of the following categories:

• Undertakings operating from Gozo;
• Undertakings registered as family businesses;
• Female‑owned undertakings; and
• Undertakings registered as social enterprises.

What is the eligible expenditure under this scheme?

Eligible expenditure is divided into two broad categories: wage‑related costs and investment‑related costs.

1.  Increase in wage costs

a) Increase in total full‑time wage costs

Undertakings may claim a tax credit on increases in full‑time wage costs by comparing the current year’s wage costs with the lowest wage costs incurred in the preceding two years, provided such costs exceed those incurred in 2025 or the last year in which support under this measure was granted.
The qualifying increase must exceed €5,000. In the case of mergers or takeovers, wage costs must be assessed on a consolidated basis.

b) Employee retention measure (new)

A new fiscal top‑up applies to wage increases implemented in 2026 and 2027 for employees who have been employed by the undertaking for more than four years. The wage increase must be at least 3% per annum, which may include COLA.

Support is capped as follows:

• Malta‑based undertakings: up to 65%, capped at €780 per employee per year, for up to two years;
• Gozo‑based undertakings: up to 85%, capped at €1,020 per employee per year, for up to two years.

The second year of support is conditional upon the wage being maintained or further increased.

   2.  Tax credits covering eligible investments

Only costs explicitly identified as eligible may be claimed. All taxes, including VAT and import duties, must be excluded. Individual invoices must have a minimum value of €500 excluding VAT, supported by valid fiscal documentation.

Eligible investments include:

a) Procurement of new tangible assets

When claiming costs under this measure, applicants must declare that the assets are registered as assets of the applicant and are necessary for the conduct of the applicant’s economic activity. For undertakings not required to prepare audited financial statements, such as self‑employed persons, a Certified Public Accountant (CPA) must confirm that an asset ledger is being maintained.

Eligible expenditure may include the procurement of new tangible assets, such as:

• Industrial machinery, electro‑mechanical and digital equipment required for business operations;

• Commercial vehicles (categories N1, N2, N3 and O) used in manufacturing, carriage of goods, construction, and repair or maintenance activities;

• Passenger vehicles (categories M1, M2 and M3, including hearses), subject to appropriate licensing, exclusive business use, and a €10,000 cap on the eligible value for M1 vehicles;

• Commercial vessels and aircraft licensed by Transport Malta and registered in the applicant’s name;

• Furniture, furnishings, apertures (doors, windows and balconies), as well as signage and shop display windows, required for business purposes.

The following exclusions and limitations apply:

• Costs relating to works of art, antiques, collectibles, spare parts and similar items are not eligible.

• Transport, installation and configuration costs are excluded unless they form part of an invoice for an eligible cost item.

• The purchase of portable digital equipment (such as mobile phones, tablets and laptops) is limited, per type of device, to the number of full‑time employees engaged by the undertaking.

• Systems intended to generate alternative energy are not eligible under this measure.

b) Refurbishment of business premises

Structural and finishing works are eligible where supported by:

• A Bill of Quantities certified by a licensed architect or civil engineer (Perit);
• Confirmation of legal title and exclusive business use; and
• Certification that the premises comply with all applicable legal and licensing requirements.

c) Digital solutions

Eligible expenditure includes digital and software related investments that directly support the applicant’s business operations, subject to the conditions outlined below:

• Packaged software solutions.

• Customisation and implementation of Software as a Service (SaaS) solutions, including licence fees for the first twelve (12) months only. Applicants must provide documentation confirming that the licence represents the initial subscription to the service.

• Development and customisation of software systems, websites, and digital applications, supported by a written agreement signed prior to the commencement of works, specifying the functionalities to be developed.

• Development, updating, and enhancement of websites aimed at improving accessibility for disadvantaged persons, which must be certified by the Foundation for Information Technology Accessibility (FITA).

• Maintenance and hosting costs are eligible only where they are directly linked to the procurement or development of a new digital solution falling within the categories above.

The following costs shall not be considered eligible:

• Ongoing maintenance costs, hosting services, subscription renewal fees, and

• Any other operating expenditure that does not meet the eligibility criteria set out above.

How does the application process work?

Undertakings may submit one application per year, covering eligible costs incurred during the previous three consecutive calendar years, provided such costs have not already been claimed.

Applications will be accepted from 1 January 2027. Submissions may be made at any time during the validity of the scheme and must be supported by the required documentation.

Applicants may engage a Certified Public Accountant (CPA) in accordance with technical guidance issued by Malta Enterprise and the Malta Institute of Accountants:

• CPA‑completed applications are processed within four weeks;
• Wage‑related claims must be reviewed and confirmed by a CPA;
• Applications that are not, or only partially, completed by a CPA will require a minimum of six months to process.

Tax credits must be utilised against business profits by the fifth year of assessment following the year specified in the tax credit certificate.

Contact us should you require our assistance in assessing your eligibility under this scheme or in determining how best to optimize this incentive to reduce your tax liability.

Written by Elaine Marie Debono, Tax Senior Manager, Forvis Mazars.