The Business Development Incentive is a key scheme from Malta Enterprise, designed to support value-added projects that drive regional development, job creation, competitiveness, and market reach.
Operating under the De Minimis Regulation, the scheme provides up to €300,000 in aid per undertaking, delivered through a combination of cash grants and/or tax credits. All assistance is provided on a reimbursement basis. While the regulation permits an aid intensity of up to 75% of eligible costs, the support generally does not exceed 50%.
For the hospitality sector, this incentive specifically covers upgrading costs, including construction expenses for hotels and guesthouses. It can also support energy-saving measures, such as investment in modern HVAC systems and the installation of heat pumps to replace light fuel oil boilers. (for the latter we can also consider assistance through the Smart & Sustainable incentive)
The Invest Incentive is designed to facilitate major initial investments by hotels and guesthouses. This support is primarily provided as a tax credit and covers the investment required to either:
- Construct and operate a new hotel/guesthouse (new establishment). This encompasses the full range of investment costs, from the purchase of land and construction to the installation of building services and required furnishings.
- Increase the capacity of an existing hotel or guesthouse. This includes the full investment necessary to achieve an increase in the number of beds and become fully operational with the extended capacity.
The support under the Invest Incentive covers the qualifying expenditure related to tangible assets (land, buildings, plant, machinery, equipment, and furnishings) and intangible assets required for the initial investment project.
Operating under the General Block Exemption regulation (GBER) the aid intensity is established according to the enterprise size and location were the project is to be implemented (refer to incentive guidelines for further guidance on the assisted area)
The Corporation shall consider supporting training that meets at least one of the following criteria:
- a) training that leads to the acquisition of skills, knowhow or knowledge directly related to the business operations of the applicant undertaking and the development of the current and future function of the trainees within the organisation
- b) training provided to non-Maltese employees to support them in learning the Maltese language and culture
- c) training in the use of digital technologies, digital communications, cyber security, and other topics related to digitisation
d)training on improving the applicant’s position vis-a-vis Environmental, Social and Corporate Governance practices. Training shall be provided by qualified trainers employed by the applicant or engaged specifically for the delivery of the training. The Applicant must identify clear learning outcomes to be achieved from the training and establish a methodology on how the attainment of these outcomes will be measured at the end of the session(s). The Corporation shall support training that: a) is delivered to at least 5 employees, and that has a duration of at least six (6) hours.
(Note: For training to be delivered by external experts the Corporation may request the Applicant to confirm that such training is not and may not be supported by other public organisation such as Jobsplus Corporation)
Malta Enterprise may approve a tax credit equivalent to 45% of eligible expenditure in favour of each undertaking. The maximum eligible tax credits per single undertaking shall be capped at €50,000 over any period of three (3) consecutive fiscal years, starting from eligible expenses incurred and paid for during the year preceding the year in which the claim is submitted. In calculating the maximum aid awarded, the Corporation shall consider any aid awarded under the previous Micro Invest Scheme. The capping specified above shall be increased by €20,000 (to a total of €70,000) for single undertakings:
- operating from Gozo
- registered as a Family Business
- having more than 50% of the ownership attributed to female persons
Qualifying Costs
Costs claimed must have been invoiced between 1st January and 31st December (both days included) of the year preceding the year in which the claim is submitted.
- Increase in Wage Costs. An eligible undertaking may apply for a tax credit on an increase in wage costs that exceed 3%, calculated by deducting from wage costs incurred in the relevant fiscal year, the highest annual wage cost incurred in the preceding two (2) fiscal years.
- Furbishing and refurbishing of Business Premises Costs incurred for furbishing, refurbishing, and upgrading (including extension and modifications) of Business Premises should be rendered by unrelated parties and covered by fiscal invoices or receipts. Photographic evidence of the work should be taken and provided to the Corporation.
- Investment Costs.
- Systems intended to produce alternative energy or improve energy efficiency unless receiving other State aid support (including non-market based feed in tariffs).
- Tangible and intangible assets required for digitisation of the business operation
- Development costs for new software systems, websites and digital applications. In these cases, the undertaking must submit the agreement with the supplier specifying the parameters and functionality of the systems/website/application being developed
- Costs incurred in relation to the undertaking’s websites developments, updates and enhancement, including modifications to existing computer systems and websites to increase accessibility for disadvantaged persons
- Certification Costs
CE Markings
ISO 9001 Quality Management Systems
ISO 14001 Environmental Management System
ISO 50001 Energy Management
ISO 22000 Food Safety Management
HACCP