Business Development 2021 Scheme

Supported initiatives should lead to new opportunities, additional employment, increased competitiveness or widening market reach.

Business Development Scheme Eligibility Criteria

  • Firms who are defaulting on VAT, Tax or Social Security payments are not eligible;
  • Public entities are excluded from the scheme;
  • The business cannot be an “Undertaking in Difficulty;
  • This scheme falls under the de minimis scheme.

Aid Awarded

  • The aid is a cash grant being a percentage of costs depending on the size of the undertaking;
  • An undertaking can claim up to €200,000 over a 3 year rolling period;
  • The aid given can be a cash grant or tax credits;
  • The scheme was launched in 2021 and closes in 31st December 2023;
  • The eligible costs can be:
  • Key personnel relocation costs;
  • Payroll costs;
  • Lease and rental of real estate;
  • Support and Advisory services;
  • Rights, licences and certifications;
  • Relocation of tangible assets and
  • Procurement of tangible assets.

Summary of Rules

The guidelines state that “Projects related to future development of the following activities shall be considered for support in the form of cash grants or tax credits
  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. Digitisation 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 internationally.
In addition, the guidelines state that “Projects that do not address the above activities but which may lead to increase in business performance and innovation, may be supported through tax credits”.

High-Level Process

  • The applicant is to apply online on the Malta Enterprise Client Portal;
  • The application consists of an application form where the applicant will need to detail a business justification for the project as well as information on how the project will be run and measured;
  • Malta Enterprise is to review the application and issue a letter of approval specifying the terms and conditions of the award;
  • Once the letter of approval is received the work can start to be carried out;
  • In order to claim the funds, usually 1 to 2 claims per annum can be made for projects however the Acceptance Letter will give more details and conditions once a project is accepted.
  • In submitting a claim, the applicant needs to submit a report analysing the services rendered and highlighting the key outcomes and followup actions, a copy of a document highlighting the deliverables, tax invoices and associated receipts covering the costs claimed and proof of payment.
CMG Consulta are advisors who carry out business consultancy with SMEs and family businesses. We can assist you with reviewing your business model, internationalising, reviewing your product portfolio, improving operational performance, re-engineering business processes and transforming your business. Please get in touch to explore actual opportunities.
This document was prepared based on the Malta Enterprise Incentive Guidelines for the Business Development 2021 Scheme as accessed on the Malta Enterprise Website on the date of publishing.