Malta continues to position itself as a pro-business jurisdiction, particularly for small and medium-sized enterprises. For companies and self-employed individuals operating locally, the MicroInvest scheme remains one of the most relevant tax incentives available.
MicroInvest 2026 is primarily relevant to businesses that incurred eligible expenditure in 2025 and wish to benefit from a tax credit against future income tax liabilities. This article explains how the scheme works, who qualifies, what costs may be claimed, and the key compliance considerations.
What is the MicroInvest scheme?
MicroInvest is administered by Malta Enterprise and provides a tax credit (not a cash grant) to eligible micro and small undertakings.
The tax credit is calculated as a percentage of:
- Qualifying capital investment expenditure; and/or
- Increases in wage costs, where applicable
For expenditure incurred in 2025, the tax credit rate is generally:
- 45% of eligible costs
- Up to 65% for undertakings operating from Gozo (subject to scheme rules)
The credit is issued through a tax credit certificate and is typically utilised to offset income tax due in accordance with the conditions of the scheme.
Who is Eligible?
To qualify under MicroInvest, the undertaking must generally meet the SME thresholds:
- Fewer than 50 full-time employees
- Turnover or balance sheet total not exceeding €10 million
- At least one employee (full-time or part-time) at the time of application
- Compliance with tax, VAT and social security obligations
The scheme applies to:
- Limited liability companies
- Partnerships
- Self-employed individuals
- Registered family businesses
The “single undertaking” rules may apply, meaning connected entities could be treated as one group for the purpose of calculating caps. This is particularly relevant for business owners operating multiple structures.
What Expenditure Qualifies?
Eligible expenditure typically includes investment that strengthens or modernises the business.
Common qualifying categories include:
- Acquisition of machinery and equipment
- Technology and digital investment (software, hardware, business systems, websites)
- Refurbishment and upgrading of business premises
- Commercial vehicles, subject to scheme restrictions
- Certification and quality standards
- Increase in wage costs, where conditions are satisfied
Expenditure must be properly documented with invoices and proof of payment. Certain exclusions apply, and related-party transactions may require additional scrutiny.
Important: Assess eligibility carefully before submitting an application.
Tax Credit Caps
MicroInvest provides a tax credit calculated as a percentage of qualifying expenditure incurred by eligible small and micro undertakings. For costs incurred in 2025, the standard rate is 45% of eligible investment, with an increased rate of up to 65% available for undertakings operating from Gozo, subject to the applicable scheme conditions. The benefit is granted in the form of a tax credit certificate issued by Malta Enterprise and is applied against future income tax liabilities in accordance with the rules of the scheme. It is important to note that MicroInvest is not a cash grant but a fiscal incentive designed to reduce the effective tax burden of business investment.
Application Deadlines for MicroInvest 2026
For expenditure incurred during 2025, the expected deadlines are:
- 25 March 2026 – Self-employed individuals
- 27 May 2026 – Companies
- 25 November 2026 – Final deadline for late submissions
Applications are submitted through the Malta Enterprise client portal.
Late submissions may be accepted within the final deadline, but early preparation reduces compliance risk.
Compliance Considerations
Businesses should review:
- Whether the employee requirement is satisfied at application date
- Whether all claimed expenditure falls strictly within eligible categories
- Whether the undertaking exceeds cumulative caps
- Whether connected entities affect eligibility under single-undertaking rules
- Interaction with other state aid received
Improper classification of expenditure or incomplete documentation may result in reduced entitlement.
Planning Ahead: Budget 2026 Updates
Budget 2026 discussions have referenced potential enhancements to the MicroInvest scheme, including increased caps and a stronger digital focus. However, businesses should rely on official Malta Enterprise guidelines applicable to the relevant expenditure year. Investments incurred in 2025 must follow the rules applicable to that claim period.
Conclusion
MicroInvest 2026 offers a structured and practical tax incentive for SMEs and self-employed individuals who invested in their business during 2025. When properly utilised, it can significantly reduce effective tax exposure and improve post-investment cash flow.
However, the scheme operates within strict eligibility and documentation requirements. Careful planning and review are essential to ensure the tax credit is both maximised and compliant.
For businesses operating in Malta, MicroInvest should form part of a broader tax and investment strategy rather than being treated as a standalone opportunity.
How Expatax Malta Can Assist
MicroInvest can deliver meaningful tax savings, but only when eligibility, documentation and state aid positioning are handled correctly.
At Expatax Malta, we support businesses with:
- Reviewing whether your undertaking qualifies under SME and single-undertaking rules
- Assessing which 2025 expenditures are properly claimable
- Verifying compliance with EU de minimis state aid thresholds
- Structuring wage cost calculations correctly
- Ensuring documentation aligns with Malta Enterprise requirements
- Integrating the MicroInvest claim into your broader corporate tax planning
We also work closely with specialised partners who have direct technical expertise in Malta Enterprise incentive schemes. This allows us to ensure that applications are prepared with both tax precision and scheme-specific technical accuracy.
For expatriate entrepreneurs, foreign-owned SMEs, and newly established Maltese companies, MicroInvest should form part of a wider strategic tax review. The tax credit impacts income tax exposure, shareholder planning, dividend timing and overall business structuring.
If your business incurred qualifying investment during 2025 and you are considering a MicroInvest 2026 claim, we recommend reviewing your position well before submission deadlines.
You may contact Expatax Malta for a structured eligibility assessment and coordinated support together with our specialist partners to ensure your claim is both compliant and optimised.
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