Family Businesses Measures
Support measures for family businesses, including incentives such as reduced duty on intra-family transfers of 1.5%, grants for governance and succession planning, training initiatives for next-generation members, and assistance with digitalisation and financial needs, will be prolonged to foster resilient succession strategies and long-term business sustainability.
Tax Credit in the Malta Budget 2026
- Increased Tax Credit for Malta-Based Businesses: the maximum tax credit under the Micro Invest Scheme will rise to €65,000, covering up to 65% of eligible costs.
- Gozo-Based Businesses: the additional 20% support for eligible businesses in Gozo remains unchanged, bringing the total benefit to €80,000 for qualifying entities.
New Investment Tax Credit
- A new incentive will offer a 60% tax credit on qualifying capital investments made over the next two years.
- Eligible expenditures include machinery, IT systems, automation tools, and cybersecurity infrastructure.
- The credit can be claimed over a four-year period.
Wage-Support Mechanism
- Malta-Based Businesses: Eligible businesses will benefit from a government subsidy covering 65% of wage increases for a period of two years.
- Gozo-Based Businesses: The support level is increased to 80% of wage increases, also for two years.
- Eligibility Criteria: Applies to employees with more than four years of service.
- Annual Cap: The maximum annual support per employee is €780 for Malta-based businesses and €960 for Gozo-based businesses.
Cooperative Tax Filing Exemption
- Cooperatives will be exempt from the requirement to submit audited accounts for tax purposes.
Court Updates
- New court facilities are under development to accommodate entities such as the Commercial Court.
- Judicial services will keep moving online with remote hearings, digital case filing, and electronic access to judgments and records.
Initiative and Incentives for SMEs in the Malta Budget 2026
Hal Far Innovation Complex: A Strategic Investment in Biotech and Research & Development
The Malta Budget 2026 introduces a new industrial complex in Hal Far aimed at SMEs in health, pharmaceuticals, biotechnology, and marine biotech. Its main aim is to strengthen the country’s innovation ecosystem, empower young entrepreneurs, and enhance SME competitiveness across high-value sectors. This initiative is designed to:
- Promote research and development (R&D).
- Facilitate market access for high-value sectors.
- Position Malta as a regional leader in life sciences and marine innovation.
Industrial Garage Scheme: €300,000 Support for SME Expansion
- A new scheme will provide up to €300,000 for SMEs and self-employed individuals to purchase industrial garages. This measure aims to reduce barriers to physical expansion and promote long-term investment in production infrastructure.
Youth in Tech: Academy for Interactive Media & Startup Launchpad
To foster young talent in technology, Malta will launch an Academy for Interactive Media in summer 2026. The academy will be complemented by startup programmes focused on pitching, mentoring, and a dedicated Pitch Day event with seed funding support. These initiatives are expected to create a pipeline of skilled youth-led ventures in gaming, media, and digital innovation. The key components include:
- Startup programmes on pitching, mentoring, and business development.
- A Pitch Day with seed funding support.
Legal Empowerment for Young Entrepreneurs
In a landmark move, Budget 2026 introduces a legal framework enabling 16- to 18-year-olds to start businesses and open bank accounts independently. This reform removes longstanding barriers to youth entrepreneurship and aligns Malta with international best practices in financial inclusion and startup policy. This reform will therefore allow young entrepreneurs to:
- Start businesses independently.
- Open bank accounts without parental consent.
This change enhances financial inclusion and aligns Malta with EU youth entrepreneurship standards.
Cultural Startups: Promoting Maltese Language and Heritage
- Startups that promote Maltese language and culture will receive targeted support, reinforcing the role of entrepreneurship in cultural preservation and creative industries. This measure reflects a broader commitment to inclusive growth and national identity.
Startup Financing: B-Start, Accelerate, and Startup Finance
Malta is expanding its startup ecosystem through a trio of targeted programmes:
- B-Start: Early-stage funding and mentoring.
- Startup Finance: Capital support for scaling.
- Accelerate: Growth-focused programme for high-potential ventures.
The Malta Government Venture Capital Fund has already made strategic investments in sectors such as health tech, gaming, and fintech, reinforcing the country’s commitment to innovation.
In addition, SMEs now benefit from free access to cutting-edge resources including Artificial Intelligence (AI), High-Performance Computing (HPC), and cloud technologies via the newly launched European Digital Innovation Hub.
Banking Reform: Legal Right to Open a Business Bank Account & Enhanced Lending Support
Budget 2026 introduces a transformative approach to financial inclusion and commercial lending for businesses.
Legal Entitlement to Open a Business Bank Account
The government is actively consulting with banking institutions to establish the right to open a business bank account as a legal entitlement. This reform aims to eliminate longstanding barriers faced by startups and SMEs, improving the ease of doing business and ensuring equal access to financial services.
Credit Review Office: Supporting Fair Lending Practices
To further support businesses, the government has launched the Credit Review Office, a dedicated platform to facilitate dialogue between banks and commercial entities. In cases where a loan application is unfairly denied, the office provides:
- A structured pathway for appeal.
- Guidance on escalating cases to the Financial Services Arbiter.
This initiative enhances transparency and accountability in Malta’s lending ecosystem.
Central Common Data Repository & Streamlined Due Diligence
To reduce administrative burdens, the Budget also introduces a Central Common Data Repository and enhanced due diligence protocols. These measures aim to:
- Simplify applicant identification.
- Minimize documentation requirements.
- Accelerate onboarding processes for financial services.
Interested in other topics announced in Malta Budget 2026?
