The Research and Development Scheme

Such R&D projects should address scientific or technological uncertainties, and the knowledge acquired through the research is expected to lead towards the development of innovative products and solutions.

This support measure also encourages cooperation between organisations by providing additional assistance for collaborative research projects.  This measure will be open until 30 September 2026.

Who is eligible for this scheme?

This scheme is open for the following types of enterprises: limited liability companies, partnerships and co-operatives. They must not be in default on income tax, vat and social security payments and must not be considered as undertakings in difficulty.

How is assistance granted?

The Aid may be awarded as Tax Credits, Cash Grants or a combination of any of these forms of aid. Cash Grants shall in principle be awarded on end finance basis, that is, beneficiaries may claim reimbursement of costs incurred. Malta Enterprise may accept to provide up to 30% of the approved amount as front financing. To be awarded a cash grant, applicants will need to demonstrate access to personal and private funds and explain how the shortfall between the funding awarded and the cost for implementing the project successfully will be covered.

The aid intensities vary from 25% - 80% depending on the size of the entity and the nature of the investment.

What costs are covered by this scheme?

The following costs are considered as eligible as long as they are incurred in relation to an approved Industrial Research or Experimental Development project. All costs must be linked to detailed objectives, tasks, expected outcomes and estimated timeframes.

1. Personnel costs -  These include wages of researchers, technicians and other supporting staff to the extent to which they are employed on the project;
2. Instruments and equipment – these shall be considered as eligible to the extent and for the period used for the project.
3. Contractual research, technical knowledge and patents  -  including those bought or licensed from outside sources at arm’s length conditions, as well as costs of consultancy and equivalent services used exclusively for the research project.
4. Land & Buildings  - to the extent and for the duration period used for the project
5. Other operating expenses - Additional overheads and other operating expenses, including costs of materials, supplies and similar products, incurred directly as a result of the project.

Should you require any further assistance or require any further information about the reduced rate of tax, do not hesitate to contact us so that we may assist you.

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