The New Funding Landscape in Malta – 2026 and Beyond

Malta’s funding environment continues to evolve rapidly. Once centred primarily on start-ups and micro-enterprises, today’s grant and incentive framework is broader, more strategic, and increasingly aligned with long-term competitiveness, innovation, and sustainability.

The introduction of enhanced tax credits, wider eligibility criteria, and greater support for digital transformation signals a clear policy direction: investment and innovation are the twin drivers of economic growth.

1. Widening Options: A Shift Toward Medium & Larger Entities

Malta’s funding ecosystem still provides extensive opportunities for start-ups and small enterprises, particularly through innovation vouchers, digitalisation support, and early-stage incentives.

However, there has been a clear broadening of scope. New measures increasingly cater to medium-sized and larger entities capable of undertaking projects with a stronger economic footprint — those that create employment, introduce new technologies, and generate export potential.

This shift reflects a policy objective: to support projects that contribute to structural growth, cluster development, and long-term resilience. For many established businesses, funding has become a core element of their investment planning cycle rather than an occasional opportunity.

2. Innovation, R&D and Sustainability at the Core

Across nearly all new schemes, projects are now expected to integrate research, innovation, or sustainability.

This does not necessarily mean laboratory-based R&D. It can involve developing new services, redesigning existing products, implementing cleaner processes, or adopting more energy-efficient technologies.

Sustainability has become equally important. Projects that demonstrate environmental responsibility, efficient resource use, or alignment with Malta’s low-carbon transition are increasingly prioritised.

The common thread across all programmes is measurable progress — a clear demonstration of how funding will lead to innovation, competitiveness, and greener outcomes.

3. Expanded Eligible Costs

The definition of what can be supported has expanded significantly, covering both capital and operational elements.

Eligible cost categories now include:

Infrastructure (CAPEX): construction, refurbishment, expansion, and, in certain cases, acquisition of land required for development.

Digitalisation (OPEX & CAPEX): implementation of new systems, automation tools, digital platforms, and process optimisation technologies.

R&D Activities: product design, testing, prototyping, and innovation-led development.

Wages (OPEX): personnel directly engaged in delivering the funded project.

This broader scope allows businesses to plan comprehensive projects — integrating physical development, innovation, and workforce capacity — within a single funding application or across multiple instruments.

4. Funding Formats: Cash, Tax Credits, Guarantees & Interest Subsidies

Malta’s incentive framework now combines a variety of mechanisms. Cash grants remain a central tool, particularly for start-ups and early-stage digital projects. However, tax credits are becoming increasingly important — particularly for established enterprises with consistent turnover.

For example, under current measures, hotels and tourism operators can access a 15% tax credit covering investment costs such as land acquisition, construction, finishing, and furnishing. This effectively offsets income tax obligations across the first five years of operation, freeing up cash flow and enhancing investment capacity.

Other mechanisms, such as guarantees and interest rate subsidies, also exist to support bank-financed projects, though these are less frequently used. The trend is clear: the mix of cash and tax credit support provides flexibility to suit different business structures and project scales.

5. Digitalisation: Beyond Online Presence

Digitalisation has evolved far beyond building a website.

Today’s funding priorities reward digital depth and interactivity — automation, data integration, and gamified engagement that improves user experience and long-term value creation.

Gamification is now emerging as a recognised innovation field. Whether in hospitality, retail, or services, digital experiences that build loyalty, gather data, or create measurable engagement are viewed as innovation-driven — and are increasingly eligible for funding.

Digitalisation is no longer an add-on; it is a core part of how businesses compete and scale.

6. Funds That Go Further

Modern funding frameworks are designed to reduce upfront risk and encourage investment continuity.

For start-ups, many schemes can cover a substantial portion of project costs, with the applicant’s main input often being time and project planning rather than large initial capital.

For established companies, the key lies in structuring projects to integrate funding at each stage — from concept and R&D through to expansion and internationalisation.

By combining grants, tax credits, and bank finance, businesses can minimise exposure, ensuring expenditure follows funding approval. The result is more efficient capital allocation, with funding embedded in every project phase.

7. The Business Diagnostics Approach

At Business Diagnostics, we see funding as a strategic component of business growth.

Our business planning process enables us to understand each client’s operations, objectives, and investment timelines. This allows us to identify which funding options to pursue, how to combine them, and when to apply over a given period.

The outcome is a clear roadmap — sequencing funding opportunities, aligning growth targets, and ensuring that investment decisions are both strategic and financially optimised.

In an environment where new schemes and instruments are introduced regularly, structured planning makes all the difference.

In Summary

Malta’s 2026 funding framework rewards ambition, structure, and foresight.

Whether you are launching a new venture or managing a large-scale investment, integrating funding into your business plan is now essential. With the right strategy and timing, your funding mix can extend your capital, accelerate transformation, and strengthen long-term competitiveness.

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Business Diagnostics helps companies plan, apply, and maximise funding opportunities in Malta and across the EU.