Insight

Micro Invest

February 26, 2026 | by Brainston Advisory
Micro Invest: Supporting Business Growth Through Tax Credits
In the ever-evolving Maltese economic landscape, the Micro Invest scheme remains one of the most effective tools for small businesses and self-employed individuals to fuel their expansion. Managed by Malta Enterprise, this incentive provides tax credits on qualifying business expenditure, including wages, assets, and business upgrades.

Recent national Budget announcements have outlined a number of enhancements to the Micro Invest scheme. These measures will apply once they are formally implemented through updated Malta Enterprise Incentive Guidelines. Until such guidelines are issued, the scheme continues to operate in accordance with the currently published rules, which remain legally binding

What is the Micro Invest Scheme in Malta?
The Micro Invest Scheme is a Malta Enterprise incentive that grants tax credits of up to 45% (65% for Gozo-based businesses) on qualifying business expenditure, including wages, digital investments, vehicles, and premises upgrades.
Current Support Levels
Under the existing Micro Invest Guidelines, the tax credit is calculated as follows:

    • 45% of qualifying expenditure for Maltese applicants
    • 65% for Gozitan applicants

 

Maximum Tax Credit (over any rolling 3-year period)

table 1
Important Deadlines for 2026
To avail of the tax credit against your

basis year 2025

      • tax return, applications must be submitted within the following windows:
    • Self-Employed Individuals: 25th March 2026
    • Companies: 27th May 2026
    • Late Applications: Can be submitted until 25th November 2026.

Please note: Late submissions will result in the tax credit only becoming available as from basis year 2026.

 

Qualifying Expenditure
The scheme covers a variety of costs aimed at modernizing and growing your operations. However, specific conditions apply to ensure the quality of the investment:

        • Wage Costs: Eligibility is triggered where the applicant demonstrates at least a 3% increase in wage costs compared to the higher of the previous two years.
        • Investments & Vehicles: Any machinery or commercial vehicles must be new or at least first-time registered in Malta. For motor vehicles, eligibility is typically restricted to commercial vehicles with a European Emission Standard of at least Euro 5.
        • Refurbishment: Costs for furbishing or upgrading business premises are only eligible if the premises are covered by the appropriate Planning Authority (PA) licenses or permits for the intended business activity.
        • Digitalisation & Tech: The scheme covers digital solutions including computer hardware, packaged software, and development costs for bespoke software and websites.
Eligibility Criteria
The scheme is strictly targeted at micro-enterprises. At the point of application, the undertaking must satisfy the following:

        1. Employ no more than 50 full-time employees.
        2. Have an annual turnover or balance sheet total not exceeding €10 Million.
        3. Employ at least one person (full-time or part-time) at the date of application.
Proposed Budget Measures (Subject to Official Guidelines)
Malta Budget 2026 announced a number of proposed enhancements to the Micro Invest scheme, aimed at strengthening support for investment, digitalisation, and workforce development.

These measures are not yet in force.

At the time of writing, Malta Enterprise has not issued updated Incentive Guidelines or legal notices to formally implement them. Until that happens, all applications must follow the currently published Micro Invest rules.

1.Higher Tax Credit Rates & Increased Caps (Proposed)

The Budget proposed increasing the level of support available to micro enterprises, including:

tabl 2
In addition, the standard tax credit rate for Maltese applicants was proposed to increase from 45% to 65%, aligning with the current Gozitan rate.

2.Digital & Innovation Investment Focus (Proposed)

The Budget highlighted the Government’s intention to widen the scope of eligible digital expenditure. Proposed qualifying areas include:

        • Automation and smart production tools
        • Cybersecurity systems
        • Advanced business software
        • Cloud-based systems
        • Digital workflow platforms

These digital investments were proposed to qualify for enhanced tax credit rates, subject to final guidelines.

3.Workforce Incentives (Proposed)

Additional support was proposed for businesses investing in staff retention and development, including:

        • Enhanced wage support for long-serving employees
        • Targeted incentives for skills development in digital and technical roles

Final conditions, rates, and limits remain subject to official publication.

4.AI, Automation & Cybersecurity Credit (Proposed)

The Budget also referred to a specialised Investment Tax Credit aimed specifically at:

        • Artificial Intelligence (AI)
        • Automation systems
        • Cybersecurity infrastructure

This incentive was proposed at a rate of 60%, spread over a four-year period for qualifying investments.

All of the above measures remain Budget proposals only. They will only become effective once formally issued by Malta Enterprise through updated Incentive Guidelines or legal notices.

Brainston Advisory will publish an update as soon as the official documentation is released.

At Brainston Advisory Limited, we specialise in guiding businesses through the entire application lifecycle, from initial eligibility assessment to the final submission of the claim.

Not sure if you qualify?
Contact Brainston Advisory today for a free initial eligibility review and ensure you don’t miss the deadlines.

Contact us

📞 +356 2152 1025/6

✉️ info@brainston.mt