Incentives for SMEs in the new public budget for 2016

The Maltese Government has recently published the new 2016 Budget which contains measures to help both enterprises and private consumers. The new Budget Law stands out by providing several incentives to Maltese small and medium-sized enterprises (SMEs) among which unprecedented grants. You can ask our Maltese specialists in company formation about the tax incentives in the new 2016 Budget.

Maltese companies to receive more support from the Government

The Government has drafted the new 2016 Budget Law while keeping in mind the interest of Maltese small and medium-sized companies which are currently helping the country’s economy to thrive. The Government is committed to aid these companies and foreign investors wanting to start businesses in Malta. One of the most important measures is the new scheme under which foreign enterprises opening a company in Malta will be awarded a grant of up to 200,000 euros payable back in up to 10 years. Innovative companies will also be granted financial support that can reach up to 500,000 euros for investments in equipment and machinery. Additionally, new crowdfunding platforms will be enabled in order to help companies to raise capital.

Foreign investors wanting to set up companies in Malta will also benefit from reduced costs with the registration procedures. The new measure will apply to companies with a maximum share capital of 1,500 euros. If you need assistance with the company registration procedure you can rely on our experts in Malta.

Financial aid for several industries

Realizing the potential of the research and development (R&D) and the manufacturing industries, the Government has put in place new measures for helping companies acting in these two sectors. Maltese companies in the R&D industry will benefit from tax credits running up 10,000 euros for hiring specialists in the sciences, IT and engineering fields. This will benefit both companies and the Maltese workforce and will lead to the growth of employment rates.

Companies in the manufacturing sector, on the other hand, will be compensated for relocation costs. Each company can receive up to 10,000 euros per year for a period of 2 years if they move their premises to properties built by construction companies in the private sector. This way, the Government will help both Maltese real estate developers and companies in the manufacturing industry.

The new 2016 Budget comes with many changes in the taxation system, which is why in order to find out more about it we invite you to contact our local agents.