Maximizing Your Benefits: A Guide to the Micro Invest Tax Credit in Malta

Chloris Portelli
26 minutes ago
3 min read

The Micro Invest Tax Credit in Malta offers a valuable opportunity for small investors and entrepreneurs to reduce their tax burden while supporting local business growth. Understanding how to make the most of this incentive can lead to significant financial advantages and encourage investment in Malta’s dynamic economy. This guide breaks down the essentials of the Micro Invest Tax Credit, explains eligibility, and provides practical tips to help you maximize your benefits.

What is the Micro Invest Tax Credit?

The Micro Invest Tax Credit is a government initiative designed to encourage investment in small and micro enterprises across Malta. It allows investors to claim a tax credit on qualifying investments, effectively lowering the amount of tax owed. This incentive supports economic growth by making it easier for small businesses to attract funding and expand their operations.

The tax credit is particularly aimed at individuals and entities investing in startups or small companies that meet specific criteria set by Maltese tax authorities. By reducing the financial risk associated with investing in smaller ventures, the scheme promotes entrepreneurship and innovation.

Who Can Benefit from the Micro Invest Tax Credit?

This tax credit targets investors who put money into qualifying micro and small enterprises. Eligible investors include:

Individual taxpayers resident in Malta
Companies investing in qualifying small businesses
Partnerships and trusts that meet the investment criteria

To qualify, the investment must be made in a company that:

Has fewer than 50 employees
Has an annual turnover or balance sheet total not exceeding €10 million
Is engaged in an eligible business activity as defined by Maltese law
Must be in good standing with its tax, VAT and FSS filings and payments

Investments in real estate or financial instruments like shares traded on the stock exchange typically do not qualify. The focus is on direct investments that contribute to business growth.

How the Tax Credit Works Mi

The Micro Invest Tax Credit allows investors to claim a percentage of their investment as a credit against their income tax liability.

A tax credit equal to 45% of eligible costs you incur for your business.

You may qualify for a higher tax credit rate of 65% total where the business is:
- Located in Gozo, or
- A registered family business, or
- Female‑owned (i.e., more than 50% ownership held by women)

Micro Invest for 2026

Max Tax Credits: €65,000 for Malta-based businesses, up to €80,000–€85,000 for Gozo-based and specific categories.
Eligible Investment (65% of costs): Digital solutions, artificial intelligence, cybersecurity, automation, IT systems, and machinery.
Wage Support: 65% of wage increases covered for employees (with 4+ years tenure) to a maximum of €780/year (or €960 in Gozo).

Timing & Deadlines

You normally claim the credit retrospectively: costs must be incurred in one calendar year and claimed in the following year.

The Primary Deadlines are:

26th March for Self Employed
28th May for Companies

Using the Tax Credit

Once approved the tax credit is applied against the tax you owe in future tax returns for the business activity to which it relates, up to the maximum cap over the allowable period.

If you can’t use all the tax credit in one year, it can typically be carried forward within the allowed period (usually up to the third year, or fifth year for qualifying start‑ups).

Applications

Applications are submitted electronically through Malta Enterprise’s Client Portal. Malta Enterprise will review your application. If approved, you’ll receive an Incentive Entitlement Certificate stating the amount of tax credit you can use.

At MCP Accountancy Services, we help small businesses and self-employed professionals navigate Malta’s Micro Invest Scheme with ease. From determining eligibility to preparing and submitting your application.