Malta Enterprise Scheme: Innovation Aid for SME`s

Would you like to grow your business but you are lacking the necessary funds, or are you a start-up looking for incentives to help you set up in the market?

Innovation Aid for SME’s

  • The aid shall be granted in the form of tax credits and shall be capped at 50% of the eligible costs.
  • The loan agreement must commence prior to 31st December 2020 and must not be extendable beyond a period of 24 months.
  • This measure is open to all SMEs
  • Eligible costs recover in the form of tax credits. Part of the costs incurred for the loan of highly qualified personnel from large undertakings and Research and Knowledge-dissemination Organisation.
  • This measure has a budget of EUR 500,000.
  • Applicants must not be defaulting on VAT, Income Tax, and Social Security.

Eligible Entities

Entities shall be incorporated under the Companies Act, Chapter 386 of the Laws of Malta being a partnership en nom collectif, en commandite or a limited liability company; or

  1. registered as a Cooperative under the Co-operatives Societies Act, Chapter 442 of the Laws of Malta; or
  2. registered as a self-employed with Jobsplus.

Eligible Costs

Costs incurred from a research and knowledge-dissemination organization or a large undertaking for secondment of highly qualified personnel employed are eligible for this incentive.


Highly Qualified Personnel

For the purpose of these Incentive Guidelines, ‘highly qualified personnel’ shall mean staff having a tertiary education degree and at least five (5) years of relevant professional experience which may also include doctoral training.

SME (Small and Medium-Sized Enterprise)

Main factors determining whether an enterprise is an SME are:

Company Category

Staff Headcount



Balance Sheet Total

Medium- Sized

< 250

≤ € 50 m

≤ € 43 m


< 50

≤ € 10 m

≤ €10 m



≤ € 2 m

≤ € 2 m


For the purpose of these Incentive Guidelines, a ‘secondment’ means temporary employment of staff by a beneficiary with the right for the staff to return to the previous employer.

Experimental Development

‘Experimental Development’ means acquiring, combining, shaping and using existing scientific, technological, business and other relevant knowledge and skills with the aim of developing new or improved products, processes or services. This may also include, for example, activities aiming at the conceptual definition, planning and documentation of new products, processes or services.

How can Erremme help you?

Erremme can guide you through the application process by completing the relevant application forms, business plans and other documents. The admission process is managed and regulated by the Malta Enterprise and these Incentive Guidelines will remain active until 31st December 2020.

For more information contact us on


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