Micro Invest scheme reopens under new improved de minimis regulations

Malta Enterprise has re-opened its Micro Invest scheme following the publication of new regulations by the European Commission, which have set the maximum de minimis limit over a period of three years to €300,000.

De minimis refers to small amounts of aid granted to one undertaking, less than €300,000 in any rolling three-year period, which are exempt from the general ban on State aid.

This move aims to encourage innovation and growth in our business community. The applications for the Micro Invest Scheme can now be submitted via the corporation’s client portal.

Minister for Economy, Enterprise, and Strategic Projects Silvio Schembri emphasised that the initial stages of a business venture are invariably the most challenging. “Hence, no one should waver in their pursuit of transforming ideas into tangible realities.”

He pointed out that the Government, through the work of various entities, has been nurturing a strong start-up ecosystem to provide assistance, tax incentives, and funding for start-ups.

Besides the myriad schemes offered by Malta Enterprise, earlier this week through MIMCOL, the Ministry introduced a new concept for Malta, the Venture Capital Fund, which will assist and invest in start-ups that have an innovation incline.

“Start-ups are the catalyst for economic growth and sustainability, a strong foundation for start-ups ultimately leads to continuous economic growth, resilience, and diversification,” said the Minister.

The Micro Invest scheme encourages small businesses to invest in innovation, expansion, and development of 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 wage costs.

The self-employed, micro-enterprises, start-ups, and SMEs employing up to 50 people are eligible for this scheme. Malta Enterprise may approve a tax credit equivalent to 45 per cent of eligible expenditure in favour of each undertaking.

The maximum eligible tax credits per single undertaking shall be capped at €50,000 over three consecutive fiscal years, starting from eligible expenses incurred and paid for during the year preceding the year in which the claim is submitted.

This capping shall be increased by €20,000 (to a total of €70,000) for single undertakings: operating from Gozo; registered as a Family Business; or having more than 50 per cent of the ownership attributed to female persons.

The scheme will be extended until 31st December 2026 with the aim of covering costs incurred in 2023 and 2024.

More information on the scheme can be found here.