The Micro Invest Scheme is a fiscal incentive administered by Malta Enterprise designed to support small businesses, self-employed persons, start-ups and family businesses in investing in their operations. The scheme provides support in the form of a tax credit calculated as a percentage of eligible business expenditure, including qualifying investments and increases in wage costs.
The objective of Micro Invest is to encourage enterprises to innovate, expand and improve competitiveness by easing the financial burden associated with business development.
How can you benefit from Micro Invest?
For an entity to benefit from the Micro Invest scheme the following criteria must all be satisfied.
- During the year in which the costs were incurred, the undertaking did not employ more than fifty (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 one person (on full or part time basis. This includes the self-employed person or sole worker with a company.
- Unless exempted, the undertaking should be duly registered with the VAT department.
Scheme’s benefits
Micro Invest offers a tax credit equivalent to:
- 45% of eligible expenditure for undertakings based in Malta (rising to 65% from fiscal year 2026)
- 65% of eligible expenditure for undertakings operating from Gozo
- In the case of the procurement of motor vehicles powered by fossil fuels the maximum support is capped at 30%
The maximum tax credit is capped at €50,000 per undertaking over any rolling three-year period (this is due to increase to €65,000 with regards to the 2026 fiscal year). This cap increases to €70,000 for undertakings that operate from Gozo, are registered as family businesses or are majority female owned. For undertakings operating from Gozo the cap is set to increase to €85,000 with regards to the 2026 fiscal year.
Eligible costs
Eligible costs must be incurred during the calendar year preceding the application and must be properly supported by fiscal documentation. Qualifying expenditure includes, among others:
- Increases in wage costs exceeding 3% compared to previous years
- A tax credit of 45% for undertakings based in Malta and 65% for an undertakings based in Gozo is provided in the current form of the scheme.
- Tax credits on qualifying wage increases will be granted at a rate of 65% starting from the 2026 fiscal year, subject to a maximum benefit of €780 per employee based in Malta or €960 (80%) per employee based in Gozo, provided that the employee has been continuously employed with the same employer for a period exceeding four years.
- Refurbishment and upgrading of licensed business premises
- Investment in machinery, technology and equipment
- Digitisation costs, including software, systems and website development
- Energy efficiency and alternative energy investments (subject to conditions)
- Commercial vehicles and certain passenger vehicles used for licensed transport services
- Costs related to obtaining recognised business certifications
Only costs directly related to the business activity are eligible, and several categories of expenditure, such as VAT, operating costs and consultancy fees, are specifically excluded.
Application guidelines
Preliminary guidelines indicate that application deadlines for expenditure incurred in 2025 are set in 2026, with the key filing dates being:
- Self-employed: 25 March 2026
- Companies: 27 May 2026
- Late applications can be submitted up to 25 November 2026, subject to conditions.
How does the application process work?
Businesses may submit one application per calendar year, covering costs incurred in the previous year. Applications must be submitted to Malta Enterprise within the established deadlines. Late submissions are accepted but may delay the year in which the tax credit can be utilised.
Once an application is approved, Malta Enterprise issues an Incentive Entitlement Certificate, which allows the business to apply the tax credit against its tax liability, subject to the applicable conditions and time limits.
To make the best use of this scheme, all investments should be planned in advance, all expenditure should be properly documented and applications are to be submitted within the primary deadlines.
If you wish to enquire on how to make the best use of this scheme, for both costs incurred in 2025, and for any planned investments for 2026, reach out to us and allow us to guide you.