Malta Budget 2024: Focus on Supporting Start-Ups

Malta Budget 2024: Focus on Supporting Start-Ups

The Minister of Finance reiterated the Government's commitment to supporting entrepreneurs and start-ups by extending multiple incentives through the year 2024.

These measures are tailored to provide significant support to budding businesses and innovative ventures. The continuation of various schemes are aimed at not only fostering growth but also bolstering sustainability, innovation, and skill development within the start-up sphere.

Continued Support Initiatives

The extended schemes include:
  • Seed Investment Scheme: Continuing to provide a legal framework that incentivizes individual investment in qualifying start-up companies through a tax credit system, the Seed Investment Scheme aims to stimulate early-stage entrepreneurial growth by channelling financial support into promising ventures, subject to specific criteria and regulations.
  • IStart-Up Finance Scheme: This initiative, extended for another year, continues to support small start-up enterprises with promising business concepts and growth commitment. By offering funding for Innovative Enterprises in the form of a repayable advance, subject to specific rules, this scheme plays a pivotal role in enabling start-ups to flourish and expand.
  • ISkills Development Scheme: Extended support for businesses in enhancing and updating employee skills and knowledge remains a crucial aspect of the extended ISkills Development Scheme. This initiative aims to tackle skill shortages, upgrade workforce competencies, facilitate re-skilling, and foster a knowledge-based workforce, provided in either tax credit or cash grant format, subject to specific eligibility criteria.
  • Rent Subsidy Scheme: Continuing to aid small and medium-sized undertakings engaged in eligible activities that require industrial space, the Rent Subsidy Scheme facilitates the acquisition of industrial premises. Designed to support business activities, growth plans, increased orders, supply chain optimization, and process innovations, this initiative stands to benefit enterprises meeting specific eligibility criteria by providing aid for rental of industrial spaces.
  • Innovation Scheme: The extended Innovation Scheme enables eligible small and medium-sized enterprises (SMEs) to collaborate with Research and Knowledge-Dissemination Organizations. This collaboration aims to drive innovation by facilitating the design of innovative products, processes, and services. The scheme provides access to expertise, knowledge, and resources, thereby enhancing business performance and fostering a competitive advantage.
  • Smart & Sustainable Scheme: The extension of this initiative signifies continued support for enterprises to make sustainable investments that enhance competitiveness through optimized resource use. This scheme focuses on digitalization and environmental performance to ensure responsible utilization of resources.
  • Investment Aid for Energy Efficiency Projects: Continuing to assist eligible undertakings in Malta, this initiative provides cash grants or tax credits for investments in technological solutions aimed at enhancing energy efficiency. The extended scheme is subject to specific eligibility criteria and serves to promote sustainable and efficient business practices.
ESG Consultancy scheme 
In addition to these continued initiatives, a new scheme will be introduced to assist small and medium-sized enterprises in obtaining consulting services that concentrate on Environmental, Social, and Governance (ESG) principles. This initiative aligns with the growing emphasis on sustainability within business operations, aiming to fortify the incorporation of responsible practices and frameworks within SMEs.
How can BDO help
We can help young enterpises explore these start-up initiatives and make sure they adhere with the specific guidelines by providing specialised advise and support.

Get in touch

Article written by Dr. Andrea Abela, Junior Lawyer