Micro Invest 2026

Micro Invest incentivises enterprises (including startups, family businesses, and self-employed individuals) to invest in their business, supporting innovation, expansion, and operational development.

Eligible businesses may benefit from a tax credit, calculated as a percentage of eligible expenditure, which also includes increases in wage costs.

Both companies and self-employed individuals may apply for this incentive.

Deadlines

Who is eligible for the tax credit?

Applications shall be accepted from undertakings which at point of application satisfy all of the following criteria:

• The undertaking did not employ more than 50 full time employees in its trade or business.
• The turnover or annual balance sheet total of the undertaking did not exceed €10 Million in the fiscal year preceding the year in which the application is submitted.
• At the date of application, the undertaking must employ at least 1 person (on full or part time basis)
• Unless exempted, the undertaking should be duly registered with the VAT department.

How much is the tax credit?

Malta Enterprise may approve a tax credit equivalent to 45% of eligible expenditure in favour of each undertaking.

An additional bonus of 20% (that is a total of 65% tax credit) applies to undertakings operating from Gozo.

What is the maximum tax credit?

The maximum eligible tax credits per single undertaking are capped over a rolling 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.

What’s new for YE 2026 (Budget 2026 update)

For applications relating to YE 2026, the maximum benefit has been increased, as follows:

• Malta: up to €65,000 per year
• Gozo: up to €80,000 per year

Which costs are covered under this scheme?

1. Increase in Wage Costs

A qualifying enterprise can request a tax credit for any increase in wage expenses exceeding 3%, determined by subtracting the highest annual wage costs incurred in the previous two fiscal years from the wage costs incurred in the relevant fiscal year.

2. Furbishing and refurbishing of business premises

Expenses related to furnishing, refurbishing, and upgrading business premises (including extensions and modifications) must:

• be incurred from unrelated parties.
• be supported by fiscal invoices/receipts.
• be supported by photographic documentation of the works, to be submitted as part of the application.

Furnishing and refurbishing of properties intended for short-term rentals will only be considered if the property is appropriately licensed at the time of application.

The Corporation shall only support costs incurred for the furbishing, refurbishing, and upgrading of business premises covered by one of the below Planning Authority licences (or equivalent permits):

• CLASS 2A – Residential Institution
• CLASS 2B – Non-residential institution
• CLASS 2C – Educational institution
• CLASS 3A – Guest Houses, Palazzini, Boutique Tourism
• CLASS 3B – Hotels
• CLASS 3C – Assembly and Leisure
• CLASS 4A – Financial, Professional and Other Offices
• CLASS 4B – Retail
• CLASS 4C – Food and Drink Establishments where no cooking is allowed.
• CLASS 4D – Food and Drink Establishments where cooking is allowed.
• CLASS 5A – Light Industry
• CLASS 5B – General Industry
• CLASS 5C – Specialised Industry
• CLASS 6A – Storage and Distribution

The Corporation shall only support costs for the refurbishment of short-term accommodation facilities which must be licenced by a Malta Tourism Authority permit.

3. Investment Costs

An undertaking may apply for investments in:

a. Acquiring new (or first time used in Malta) machinery, technology, apparatus, and instruments.

b. Acquiring new (or first time used in Malta) sea going vessels covered by a commercial vessel licence operator (excluding the carrying out of fishery and aquaculture activities).

c. Systems intended to produce alternative energy or improve energy efficiency unless receiving other state aid support (including non-market-based feed in tariffs).

d. Tangible and intangible assets required for digitisation of the business operation. Eligible costs may include:

i. Computer hardware.

ii. Packaged software solutions. Micro Invest

iii. Development costs for new software systems, websites, and digital applications.

iv. 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.

4. Motor Vehicle Costs

Qualified enterprises are entitled to recoup expenses for the acquisition of any Commercial Vehicle obtained as new or initially registered in Malta, provided it meets a European Emission Standard rating of at least Euro 5 as long as the vehicle is:

• Involved in the carrying of goods; or
• Special purpose Motor Vehicles; or
• Any vehicle that is designed specifically for the carriage of 7 or more persons.

Operators licensed to offer passenger transport services, possessing a valid license (Taxi Driver Permit and Tag) from Transport Malta, are eligible to request reimbursement for the expenses incurred in purchasing one plug-in hybrid (PHEV) or electric passenger vehicle within any rolling three-year period for providing passenger transport services.

For vehicles powered by a fossil fuel engine, the maximum support for procurement is limited to 30%, regardless of the aid intensities outlined in section 4.1. However, this restriction does not apply to plug-in hybrid (PHEV) and electric vehicles.

5. Certification Costs

Qualified businesses have the opportunity to request reimbursement for expenses related to obtaining certifications pertinent to their operations. Eligible costs encompass business advisory services rendered by unrelated entities, as well as the actual certification expenses. These certifications must lead to the attainment or, if applicable, the extension of any of the following certifications:

i. CE Markings

ii. ISO 9001 Quality Management Systems

iii. ISO 14001 Environmental Management System

iv. ISO 50001 Energy Management

v. ISO 22000 Food Safety Management

vi. HACCP

Budget 2026 Update (Guidelines Pending)

Following the Budget 2026 announcement, Micro Invest is expected to continue for YE 2026. However, Malta Enterprise has not yet published the final updated guidelines, meaning that the final rules and conditions will only be confirmed once the official documentation is released.

That said, the expected changes include:

• An increased maximum cap of €65,000 for businesses operating in Malta (with tax credits potentially up to 65% of eligible investment costs).
• A higher cap for businesses operating in Gozo, expected to reach €85,000.
• Improved support on wage increases, potentially subsidised at 65%, capped at €780 per employee (Malta) or €960 per employee (Gozo), provided the employee has been with the same employer for more than 4 years.

Need support with your Micro Invest application?

If you require additional guidance or support in preparing your Micro Invest claim (including reviewing eligibility, compiling documentation, and confirming qualifying costs), feel free to reach out to us — we will be happy to assist.