Start-Up and Research Funding in Malta

Kresse Law supports businesses in benefitting from Start-Up and Research Funding

Malta, a small yet dyanmic Mediterranean island, is rapidly emerging as a hub for innovation and entreprenuership. The Malta Enterprise is the Government's economic development agency which nurtures the country's start-up ecosystem. Through a range of funding programmes and support initiatives, Malta Enterprise helps turn innovative ideas into thriving businesses. Two great funding opportunities offered by the Malta Enterprise are the Start-Up Finance Grant and the Exploring Research Grant.

I. Start-Up Finance

This supports aspiring businesses, Malta Enterprise grants loans of up to €1,500,000 to start-ups. A budget of €63,000,000 is allocated to this programme. The programme runs till 31st December 2026, applications can be submitted until 30th September 2026.

(1) Eligibility

Start-ups which are limited liability companies (or similar organisations having limited liability) within the EU and with an operating base in Malta. Enterprises not yet incorporated may still apply for funding as long as the formation of the company will be completed within a timeframe established by Malta Enterprise. To qualify the company must fulfil the following criteria:

- Five years haven't passed since its registration (if necessary, otherwise the five-year-term starts with the company’s economic activity or its tax liability with regard to its economic activity, whichever is earlier);

- Profit not yet distributed;

- Less than 50 full time employees and less than €10,000,000 annual turnover or an annual balance sheet not exceeding €10,000,000;

- Hasn’t taken over the activity of another enterprise, unless the turnover of the overtaken activity accounts to less than 10% of the turnover of the eligible undertaking in the financial year preceding the take-over; and

- Hasn't acquired another undertaking or hasn’t been formed through a merger, unless the turnover of the acquired undertaking accounts for less than 10% of the turnover of the eligible undertaking in the financial year preceding the acquisition or the turnover of the undertaking formed through a merger is less than 10% higher than the combined turnover that the merging undertakings had in the financial year preceding the merger.

Start-ups must also be engaged in at least one of the following activities:

- Manufacturing;

- Software development;

- Industrial services analogous to manufacturing;

- Health, Biotechnology, Pharmaceuticals and Life Sciences; and

- Other innovative economic activities which are enabled through knowledge and technology providing services or products which are currently not readily available in the relevant market or which shall be provided through a process which is novel.

At least two of the following criteria must be met:

- Propose products and or services that have the potential to generate income from various geographical markets;

- Produce products and or services which are new or substantially improved compared to complementary products on the market; and

- Utilise processes which are new or substantially improved compared to those adopted in current complementary activities.

Companies that are active in the real estate and gambling sectors are excluded from the possibility of funding. Companies whose business activities consist of wholesale or retail trade of goods or services to which the eligible undertaking has no added value in the carrying out of his economic activity, are also ineligible.

(2) Amount of Funding

For small start-ups a maximum grant of €500,000 is possible, this is doubled for innovative start-ups. The amount of the loan increases further if the start-up operates out of an assisted area.

- Small start-ups: €500,000;

- Innovative start-ups: €1,000,000;

- Start-ups operating from an assisted area: €750,000; and

- Innovative start-ups operating from an assited are: €1,500,000.

(3) Uses of Funding

The funds may be used by the company for various, yet limited expenses. For example, 75% of personal costs, costs for the procurement of materials, and of specialised and technical services as well as costs incurred for establishing an operation in Malta.

For funding details and clarifications, please contact us.

(4) Application Process

Dr Kresse International Law Firm will be pleased to assist you with your application, please get in touch for further information.

(5) Premium and Redemption

The annual premium will be 2% over the European Central Bank\\\'s base rate as set out at the beginning of the year in review (with a minimum of 1%). After the tenth year from the disbursement of the loan, Malta Enterprise might begin negotiations to restructure any outstanding balance.

II. The Exploring Research Grant

This promotes research and development, Malta Enterprise grants loans up to €100,000. A budget of €1,000,000 is allocated to this programme. Applications may be submitted until 30th October 2026.

(1) Eligibility

Limited liability companies, partnerships or co-operatives can apply. Generally, they cannot have any dues in relation to VAT, Income Tax, and Social Security payments that in total exceed €1,000, unless the applicant has a repayment agreement to settle any dues that is being honoured.

Certain applicants cannot be considered, such as public entities and research and knowledge-dissemination organisations. The product the company wants to finance with the grant must be implemented and finalised within 52 weeks after the commencement date.

(2) Eligible Costs

Eligible costs consist of wage costs, costs related to contractual research, technical knowledge and patents and other operations costs incurred for carrying out the study. Depending on the category of the undertaking, 50-70% of the eligible costs are to be covered by the grant. The loan amounts to a maximum of €100,000. For further details please contact us.

(3) Application Process

The application must be submitted prior to the start of the project and before 30th October 2026. Dr Kresse International Law Firm will be pleased to assist with your application, please get in touch for further information.