Digitalise your SME

Who is eligible for this scheme?

This Grant Scheme seeks to support digitalisation investment initiatives by Start-ups and SMEs, in several economic sectors, in their digitalisation endeavours and to intensify the digitalisation of operations.

The scheme shall support enterprises through investments in digital technologies and related processes in the enterprise in particular hardware, software and other digital solutions to improve their efficiency, productivity and customer experience.

What expenditure is covered by this aid?

This Grant Scheme will support eligible enterprises to procure expenditure which is eligible under the general threshold as well as expenditure which is eligible under the increased AI-threshold.

Any of the eligible expenditure is to be identified in the Application and Investment Proposal (if applicable) and are to be procured from external and unrelated sources to the applicant.

Eligible Expenditure under general threshold

The following cost categories are eligible under the general threshold:

Digital Solutions:

• Commercial Off-The-Shelf (COTS) and Custom Software
• Hardware (such as Laptops, Docking Station, Port Replicator, Monitors, Tablets
• Analytical Tools (including necessary hardware and software) 
• Cyber Security systems 
• Cloud computing 
• Internet of Things (IOT)
• Artificial intelligence (AI)
• Big Data analysis
• Cyber Security
• Quantum Technology
• Routers, switches and WIFI related equipment 
• Other hardware, software or Digital Solutions (identified in the application and not already identified above, which the division may consider eligible under this scheme)  
• Installation including any training costs on the use of the specific item acquired under points above and included in the purchase price of the item in question, and thus from the same provider.
   

In addition to the above, applicants are also entitled in their operations budget another simplified cost option, being a flat rate on the eligible expenditure, to reflect as follows:

• 7% flat rate to finance any indirect costs related to the investment

Eligible Expenditure that qualify for the increased AI threshold

     a. Staff Costs (aligned with the eligible actions)

• Eligible staff costs shall correspond to the hours worked directly on the development or implementation of the AI solution. Project management activities shall not be eligible under this cost category. Such costs shall be capped at a maximum of 25% of the additional threshold.
• Eligible Staff costs shall be calculated on the basis of an hourly rate of €19.6216, multiplied by the number of hours identified in the scoping report. The roles of the staff concerned shall fall under the “Professionals” occupational category, in accordance with the International Standard Classification of Occupations.
• Beneficiaries shall provide the names of the employees involved, together with documentation issued by the service provider confirming the total number of hours performed by such employees.

     b. AI Solutions

• Acquisition of AI solution/models

Eligible investments may include:

• Custom-built AI solutions
• Customised off-the-shelf (COTS) AI systems
• Subscription-based AI platforms (for a period of up to 2 years)
• Consumption or usage based models (for a period of up to 2 years)17
• Integration services required to connect the AI solution with existing systems such as ERP, CRM, or other core platforms

• Procurement of hardware and/or cloud solutions

• Hardware or cloud services directly required for the implementation of the AI solution are eligible.
• Cloud services may be supported for a period of up to 2 years.

• AI-Related Components and Supporting Measures

Costs directly linked to the development of the AI solution, including:

• Cybersecurity measures
• AI assurance and responsible-use frameworks
• User Acceptance Testing (UAT)
• Deployment and configuration support

• External services required for the set-up of AI modules or cloud environments, where necessary for the solution’s deployment. This may include support to applicants under the scope of the EU AI Act to enhance their capacity to comply with upcoming requirements. Such support shall be limited till the coming into force of the requirements associated with High Risk AI Systems.

• User training specifically related to the approved AI solution is eligible when delivered by the same supplier(s) providing the AI system or related components

How is the grant calculated and what is the % covered by such?

The minimum grant value under this scheme is set at €25,000, while the maximum grant value for eligible actions is €120,000. An additional 7% flat rate is applied to the grant value to finance indirect costs related to the investment. For example, if the grant value amounts to €120,000, a 7% flat rate will be applied, resulting in a total maximum grant to €128,400.

AI-related projects shall have their maximum grant threshold increased by up to €100,000, applicable exclusively for Artificial Intelligence cost items. Up to 25% of this additional threshold may be allocated to staff costs. An additional 7% flat rate shall be applied on this additional threshold to finance indirect costs related to the AI investment. At the maximum additional threshold of €100,000, the application of the 7% flat rate results in a total increased maximum grant threshold to €107,000.

Applications under de minimis Regulation are eligible for part-financing eligible costs up to 50% for investments in Malta and 60% for investments in Gozo.

When are the cut off dates for this Scheme?

Whilst the Digitalise your SME  will remain operational until 31 December  2026, subject to availability of funds, it is worth noting that the next round of cut-off dates are the following:

31st July 2026

17 August 2026

18 September 2026

30 September 2026

16 October 2026

30 October 2026

13 November 2026

30 November 2026

14 December 2026

We at Forvis Mazars can  help you identify the schemes that best fit your company’s needs and objectives. We also provide practical support throughout the application process to ensure your submissions are complete, accurate, and timely. By simplifying requirements and offering clear, tailored guidance, we help your organisation make the most of the opportunities available. Whatever your growth ambitions, we ensure you are well‑positioned to benefit from the schemes that align with your goals.