Government Incentives

Apart from fiscal incentives the Government of Malta attracts foreign investment with a variety of different incentives mainly through its agency Malta Enterprise.

All investment incentives are specified by law and not made available in an ad hoc manner and treatment of domestic and non-Maltese investors is identical.

There are currently no performance requirements other than those linked to the goals stated by the investor at the time of application for assistance to Malta Enterprise.

Soft Loans: Promoters of industrial projects may seek soft loans from Malta Enterprise covering up to 75% of the projected capital outlay. Alternatively, companies may benefit from low interest rates payable on loans taken up from licensed financial institutions to acquire additional assets.

Investment Tax Credits: The Government of Malta offers substantial investment tax credits of up to 50% in relation to the new jobs created. The relative percentage could be increased to 65% in the case of SMEs. Companies that are entitled to the benefit of reduced rates of income tax also qualify for investment tax credits.

Ivestment Allowance: An Investment Allowance of 50% on plant and machinery and 20% on industrial buildings and structures, in addition to normal tax depreciation can be obtained.