RSM Malta

Malta Economic Regeneration Plan

On the 8th of June 2020, the Maltese Government has announced an economic regeneration plan aiming to boost Malta’s economy after the COVID-19 slowdown which can be categorised in three categories: Reduction of costs for businesses / Increasing domestic demand / Incentivising industry while safeguarding jobs.

Reduction of costs for businesses

  • One-time rent subsidy of Euro 2,500 for businesses listed in Annex A and Annex B
  • One-time utilities support of up to Euro 1,500 covering July, August and September for businesses listed in Annex A and Annex B
  • Reduction of petrol and diesel prices of 7c per litre from Monday 15th June
  • One year of Trade Licenses to be refunded
  • Up to Euro 10,000 support for digital marketing campaigns in new markets outside Malta
  • Refund of up to 80% incurred costs for international trade fairs that were cancelled due to COVID-19
  • Support to NGOs (Euro 3 million) and to old people’s homes (Euro 2 million)
  • Support for local producers (farmers and fishermen) to promote their product

Increasing domestic demand

  • Reduction of property transfer tax from 8% to 5% for sellers and transfer duty from 5% to 1.5% on transfers up to Euro 400,000 – contracts to be published by end of March 2021
  • Euro 100 vouchers to be granted to all residents (over the age of 16). Vouchers to expire at the end of September 2020 and are to be spent Euro 20 on retail outlets and Euro 80 on MTA licensed operators. This measure is expected to cost Euro 34 million
  • Wedding deposits to be refunded through Euro 2,000 per couple for weddings cancelled due to COVID-19
  • In work benefit to be increased and each family to receive an additional one-time benefit of Euro 250

Incentivising industry while safeguarding jobs

  • Wage supplement of Euro 800 to continue within the tourism industry. Other industries (in Annex A) to be reduced to Euro 600. Annex B has not been amended. This incentive is expected to continue till end of September
  • Grants of up to Euro 200,000 for the construction industry to acquire more eco-friendly equipment
  • Grants of Euro 5,000 to cover business consultancy fees to re-engineer their business models
  • Malta Development Bank to underwrite bonds that are not subscribed upon their roll-over
  • Tax credits received as part of the Malta Enterprise micro-invest scheme may be converted into cash grants (capped at Euro 2,000 for businesses in Malta and Euro 2,500 for businesses in Gozo)
  • Increase of Euro 5 million in the budget for the skills development scheme

Further details are to be published in due course.

For additional information contact [email protected] or [email protected]