Malta AI & Digital Funding: What's Open in 2025–2026
A plain-English run-through of the nine AI and digital funding schemes open in Malta this cycle: what each one covers, where the ceilings sit, and which fits your project.
Most businesses building AI or custom software in Malta are leaving grant money on the table. Not because the schemes are obscure (several are well-publicised), but because nobody has sat down to work out which ones apply and whether the project can be structured to qualify. We put together a complete reference guide covering every active scheme this cycle. What follows is the plain-English version.
Just announced: €235,400 for AI projects
On 4 May 2026, Malta tripled the budget for Digitalise Your SME Call 2 to €15 million and introduced a dedicated €107,000 AI top-up on top of the existing €128,400 base grant. For AI-focused projects, that means up to €235,400 in cash from a single scheme. It’s the first concrete tranche of Malta’s €100M national AI commitment. Call 1 is still running, with rolling cut-offs through 30 June 2026. Call 2 opens 1 July 2026.
Nine schemes, most of them open right now
Between EU ERDF funding, Malta Enterprise national schemes, R&D grants, startup finance, and free infrastructure access, there are nine routes currently available. Coverage ranges from 45% to 85% of eligible project costs. The headline ceilings are €235,400 for AI-focused custom builds (Digitalise Your SME with the AI top-up), €300,000 for larger transformation projects, €225,000 for 24-month digital R&D programmes, €100,000 for feasibility-stage R&D, up to €500,000 in equity via the Malta Venture Capital Fund, and repayable advances from €500,000 via Start-up Finance. Malta Budget 2026 put €100 million behind AI and digital technology adoption, and the schemes below are where that flows.
The ERDF grant is the most relevant for software projects
Digitalise Your SME (FONDI.eu) is the primary route for businesses commissioning custom software or bespoke AI systems. It runs at 50% coverage as standard (60% in Gozo), with a +10% bonus for AI, IoT, Cybersecurity, Cloud, and Quantum projects. With the new €107,000 AI top-up layered on, an AI-focused build can reach €235,400 in support. A Gozo-based SME building AI sits in the 70% coverage band, and startups higher still.
Eligible costs include custom development, off-the-shelf AI tools, cloud platforms, hardware with a three-year useful life, and linked training. In straightforward terms, if we’re building something for you, a significant share of the invoice is grant-eligible. Call 1’s budget is rolling with cut-offs through 30 June 2026, and Call 2’s €15M pot opens 1 July 2026.
The Malta Enterprise routes fill different gaps
SME Enhance runs to a €128,400 ceiling with an innovation-led mandate (€6M budget, deadline 31 December 2026). It’s a good fit for businesses adopting AI to improve productivity or competitiveness rather than building from scratch.
Business Reports for SMEs is new and small but useful, a €4,000 lump sum covering 80% of the cost of an AI-focused business review. Rolling applications. It’s essentially the structured assessment we run at the start of an engagement to identify where AI fits the operating model before committing to a build.
Micro Invest is different in kind, a tax credit rather than a cash grant. You get 45% of eligible expenditure back against income tax, with a simpler application and lower documentation overhead. It’s particularly useful for businesses investing in AI subscriptions or software licences (Copilot, ChatGPT Enterprise, analytics platforms) without the need for a full ERDF application. Cap is €50,000 over three fiscal years, with an additional 20% for Gozo-based businesses. The company deadline is 27 May 2026.
The Business Development Scheme is the highest-ceiling national route at €300,000, covering up to 75% of costs. It’s built for projects that can demonstrate clear economic value to Malta, such as jobs created, markets expanded, or competitiveness improved. More involved to apply for, but the ceiling reflects that. The deadline has been extended to 30 September 2030, which makes it a viable home for multi-year transformation work.
R&D grants are for building AI, not adopting it
If the project involves developing original models, proprietary architectures, or genuinely novel applications rather than deploying existing tools, the R&D streams are more appropriate. The FONDI.eu Innovation & Entrepreneurship Grant offers up to €100,000 for feasibility studies (€2M budget, deadline December 2026). Malta Enterprise’s R&D Incentive runs to 30 September 2026. MDIA’s MARG provides up to €40,000 specifically for AI research plus a €1.2M seed fund. Xjenza Malta handles the FUSION Programme for broader national R&I funding. The distinction matters for eligibility: these aren’t for digitising a workflow.
The Xjenza Digital Innovation Programme is the new heavyweight in this category, up to €225,000 over a 24-month research project, with AI named as Priority Area 1. The call opens 1 July 2026 and is squarely aimed at applied AI research and experimental development. For longer-horizon, research-backed AI builds, this is the route.
For early-stage businesses, the startup funding cluster spans a €10,000 seed grant (Business Start), repayable advances from €500,000 (Start-up Finance), and equity up to €500,000 through the Malta Venture Capital Fund. YouStartIT has a dedicated AI accelerator track, and TAKEOFF Seed Fund has specifically increased its allocations for AI companies this cycle.
Malta EDIH is the smart first step
Before going near a formal grant application, it’s worth knowing what’s free. Malta EDIH, run by MDIA, MCESD, and the University of Malta, gives SMEs open access to technology testing, training, and business support. The Digital Innovation Hub provides complimentary time on Malta’s first High Performance Computer. Budget 2026’s “AI for Everyone” initiative covers AI training and certifications at no cost.
Going through EDIH before applying for a grant reduces pre-project costs and often strengthens the application itself. Validated feasibility and documented testing carry real weight in scoring.
A note on applications
The reference guide has filters by company size and project type, with full eligibility criteria and links to the administering bodies for each scheme.
The thing we’d add is that applications work best when the project is scoped with the scheme in mind from the start, not restructured to fit after the fact. How costs are categorised, how outcomes are framed, how economic value is evidenced: all of it affects how an application scores. If you’re planning a project and want to work through which schemes apply and how to structure it, get in touch.
Funding data updated May 2026 to reflect the 4 May Digitalise Your SME announcement. Verify eligibility and deadlines with the administering body before applying.
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