SHELTONS INTERNATIONAL GROUP
Malta has positioned itself as a dynamic hub for businesses seeking growth, innovation, or relocation within Europe. Its strategic location, EU membership, skilled workforce, and competitive tax framework make it attractive, but what often tips the balance for investors is the availability of grants, co-financing schemes, state-backed venture capital, and tailored financial incentives.
Yet, while the framework appears straightforward on paper, the reality is more complex. Companies must navigate eligibility criteria, overlapping schemes, reporting obligations, and state aid rules. The application process can be highly technical, and approvals are not automatic. This is where experienced advisors such as Sheltons Malta become essential. Our dedicated grants and incentives team ensures that applications are not only accurate but strategically structured, so businesses secure the maximum available support without risking delays or rejections.
Malta Enterprise: The Backbone of FDI and Strategic Investment
Malta Enterprise (ME) is the principal government agency responsible for attracting and supporting investment. It offers a broad range of incentives, from cash grants and tax credits to soft loans and tailored aid packages.
For strategic industries such as advanced manufacturing, med-tech, ICT, life sciences, and R&D-driven sectors, Malta Enterprise can approve packages valued at up to €15 million per project. Unlike smaller schemes, ME is highly flexible: aid is structured around the business model, with a mix of instruments that can include wage support, training aid, machinery and equipment financing, and research funding.
However, approvals depend on strict EU state aid rules, and success requires detailed financial modelling and careful justification of the economic impact. Applications must demonstrate how the project will contribute to Malta’s economy, employment, and innovation ecosystem. Sheltons Malta assists in preparing this case, ensuring that submissions are not only compliant but persuasive.
Measures and Support Division: EU Co-Funded Grants
The Measures and Support Division (MSD) manages EU co-financed schemes, particularly those backed by the European Regional Development Fund (ERDF). These schemes are targeted at small and medium-sized enterprises (SMEs) and focus on investment in equipment, process improvements, digitalisation, and energy efficiency.
MSD grants are usually capped at around €500,000 per application, but a single company can apply for multiple schemes if eligible. Over the course of a funding cycle, it is realistic for SMEs to secure between €1 million and €1.5 million in support, depending on the combination of projects. For example, one firm might apply for a competitiveness grant, an energy efficiency upgrade, and a digitalisation programme.
It is important to note that MSD schemes generally require applicants to provide part of the financing themselves. Higher co-financing rates are often available for startups and companies operating in Gozo. Sheltons Malta guides clients through eligibility checks, cost planning, and compliance with procurement rules, helping to avoid the common pitfall of ineligible expenses.
Venture Capital: Malta Government Investments
For startups and scale-ups, grants may not be sufficient, particularly when equity financing is required to accelerate growth. Malta Government Investments (MGI) manages a state-backed venture capital scheme with a €10 million allocation. Companies can access equity injections of up to €500,000, usually matched with private investment.
The scheme prioritises innovative, R&D-driven sectors such as artificial intelligence, life sciences, and digital technologies. It is often combined with Malta Enterprise support and MSD grants to create a blended funding package covering both capital expenditure and growth capital.
Other Forms of Support
Additional schemes are also available. Industrial space support provides up to €300,000 per company over six years, capped at €50,000 annually. Startups can access repayable advances and soft loans of between €400,000 and €800,000 under Malta Enterprise’s Startup Finance scheme. These programmes can be combined, subject to state aid ceilings, enabling smaller firms to secure between €1.5 and €2 million in total support.
What Companies Need to Know
While the funding landscape is generous, it is not without complexity. A few important realities should be highlighted:
Application process: Grants are not automatic. Proposals must be detailed, compliant with regulations, and demonstrate economic value. Incomplete or poorly prepared submissions are often rejected or delayed.
Funding disbursement: In most cases, companies do not receive the entire grant upfront. Payments are released in tranches against proof of investment, invoices, or project milestones. Businesses must therefore manage cash flow carefully.
Multiple applications: Companies can apply for more than one grant at the same time, provided they do not breach state aid limits or claim the same expense under two schemes. Strategic planning is essential to avoid overlaps.
Eligibility abroad: Generally, applicants must be registered in Malta or Gozo, but companies can apply while still in the process of relocating. Sheltons Malta assists international investors in structuring their presence to qualify.
Beyond money: Some schemes include non-financial support, such as subsidised office or industrial space, training programmes, and advisory services.
The Tax Advantage
Grants and co-financing are only one side of the equation. Malta’s competitive corporate tax system, provides a significant benefit to companies relocating to Malta enhances the impact of financial aid. Combined with over 70 double taxation treaties, the Maltese fiscal incentives and pro-business environment allows companies to expand internationally while maintaining efficiency, maximizing liquidity, and increasing investors’ returns.
Why Professional Guidance Matters
Incentives in Malta are designed to reward high value-added activity, but they require careful structuring. Many companies underestimate the complexity of eligibility, reporting, and state aid compliance. Even when applications succeed, delays in disbursement or compliance failures can create serious operational challenges.
At Sheltons Malta, we have a dedicated team specialising exclusively in grants and incentives. Our role is to ensure that:
– Applications are strategically prepared and aligned with business goals.
– Clients are fully informed at every stage of the process.
– Reporting and compliance obligations are managed seamlessly.
– Opportunities to combine different incentives are maximised.
This allows clients to focus on their core business — developing products, winning customers, and building revenue — while we ensure the support framework operates in the background, smoothly and efficiently.
Malta offers one of the most supportive frameworks in Europe for businesses that bring innovation, efficiency and growth. With the right combination of grants, co-financing, venture capital, and tax optimisation, companies can engineer an incentive package worth millions. The real challenge is not the availability of funds, but ensuring that applications are designed strategically, deadlines are met, and reporting requirements are respected.
Sheltons Malta makes this possible by handling the full process on behalf of our clients. From the first eligibility check to securing approvals and ensuring smooth disbursement, our grants and incentives team allows businesses to stay focused on growth while we take care of the technicalities.
Frequently Asked Questions
Can one company apply for more than one grant?
Yes, provided the expenses do not overlap and state aid thresholds are not exceeded. With careful planning, it is possible to combine different schemes into a multi-million-euro package.
Do companies receive all funds upfront?
No. In most cases, funding is released in stages after investments are made and verified. This is why financial planning is essential.
Is there a limit on the maximum support available?
Yes. For large-scale strategic projects supported by Malta Enterprise, packages can reach up to €15 million. For SMEs under MSD schemes, the ceiling is typically €500,000 per application, with the possibility to secure €1–2 million in total across multiple applications.
Small amounts of aid granted to one undertaking, that is, less than €300,000 in any rolling 3-year period, are considered to be so small as to have no appreciable effect on competition or trade and, under the De Minimis Regulation (EU) 2023/2831 rule, these are exempt from the general ban on State aid.
Can foreign companies apply before establishing in Malta?
Yes. Companies relocating to Malta can apply during the setup stage, but they must establish a legal presence in Malta to finalise the process.
Are non-financial benefits available too?
Yes. Some programmes provide subsidised office or industrial space, advisory support, and training programmes in addition to cash or tax benefits.
Why not apply directly without advisors?
While applications are open to all, the process is highly technical, subject to strict compliance rules, and competitive. Errors can cause delays or rejection. Working with Sheltons Malta ensures applications are accurate, optimised, and strategically positioned for approval.
