Malta AI & Digital Funding Schemes 2025–2026

Micro, small, and medium enterprises registered in Malta or Gozo, including start-ups up to 5 years old (micro/small only). Must be in eligible economic activity and not in financial difficulty.

• Custom software development
• Off-the-shelf software (COTS)
• AI, Big Data & Cloud tools
• Cybersecurity & IoT systems
• Hardware (servers, laptops, routers)
• Training linked to acquired technology
• +7% flat rate for indirect costs

• 50% standard (Malta)
• 60% standard (Gozo)
• +10% bonus for AI, IoT, Cybersecurity, Cloud, Quantum
• +€107,000 AI top-up: the €128,400 base grant rises to €235,400 total for AI-focused projects

The maximum 85% support rate is achievable only under specific stacked eligibility conditions (such as Gozo location, startup status, advanced technology uplift, and digital intensity improvement bonuses). Most applicants will typically fall within the 50–70% support range.

• Budget tripled to €15M
• Call 1 still running, with rolling cut-offs through 30 Jun 2026
• Call 2 opens 1 Jul 2026, with the first cut-off scheduled for 31 Jul 2026
• De minimis cap: €300k in state aid over 3 years

Micro, small, and medium enterprises in eligible economic activities, including start-ups up to 5 years. Must be legally registered and not in collective insolvency.

• Productive investments to improve competitiveness
• Innovation and smart economic transformation
• Digital innovation within operations
• Sustainability-linked digital investments

Must score ≥50% on: risk assessment, project excellence, impact and sustainability, quality of implementation. Financial viability assessed separately.

• Repair and maintenance
• Used or refurbished equipment
• Agriculture, tobacco, gambling sectors

A €4,000 lump-sum support measure covering 80% of costs towards externally prepared business reports, an external assessment to support business planning and operational improvement.

Micro, small, and medium enterprises registered in Malta. Applications are accepted on a rolling basis.

• Business Plans
• Process & Systems Reviews

KVLR Code can also use this scheme to support AI-focused operational and digital transformation reviews where eligible.

A tax credit against income tax, not a cash grant. Open to businesses with up to 50 employees, eligible businesses receive 45% of approved expenditure back as a credit applied to future income tax payable. The deadline for companies is 27 May 2026.

• Software licences and subscriptions
• IT equipment (3-year min. useful life)
• Wage increases above 3%
• Other eligible business investments

• €50,000 over 3 consecutive fiscal years
• €70,000 for Gozo-based, family-run, or female-owned (>50%) businesses
• Additional 20% for Gozo-based businesses

Budget 2026 announced enhanced limits for expenditure incurred from 2026 onwards, increasing support to:

• 65% with a €65,000 cap for Malta-based businesses
• Up to 85% with an €85,000 cap for eligible Gozo-based, family-run, or female-owned businesses

These enhanced limits apply to 2026 expenditure and are expected to be claimable in 2027. The 45% / €50,000 / €70,000 figures above remain the rates for the active 2025 expenditure claim window.

Simpler to apply for with lower documentation requirements. Reduces future income tax rather than providing cash upfront. Can be stacked with other schemes subject to de minimis limits.

SMEs and large enterprises undertaking projects that add economic value to Malta. Includes new initiatives, expansions, transformations, and digital innovation. Project must have started after 1 January 2024. Gambling, real estate, and financial services activities are excluded.

• Digital transformation initiatives
• New or innovative business models
• Environmental and sustainability actions
• Collaborative and cross-sector projects
• Operational expansion

Comprehensive business case, project plan, financial projections, and evidence of economic value. Merit-based evaluation. Requires demonstrable job creation, competitiveness, or market expansion outcomes. The scheme runs with a deadline extended to 30 September 2030.

• New business opportunities created
• Skilled employment generated
• Increased market competitiveness
• Expanded market reach

• Feasibility Studies (FONDI.eu): up to €100k for feasibility studies, SMEs and small mid-caps. Budget €2m. Deadline Dec 2026.
• MDIA MARG: up to €40k for AI research + €1.2m seed fund.
• R&D Incentive (Malta Enterprise): industrial research addressing scientific/technological uncertainties. Deadline 30 Sep 2026.
• FUSION Programme (Xjenza Malta): national R&I funding streams.

• Researcher and developer wage costs
• Contractual research and technical services
• Patents and IP registration (up to 90% via IPR Voucher)
• Technical knowledge acquisition
• Feasibility for novel AI products or services

A research grant for a 24-month digital innovation project. AI is Priority Area 1 of the programme. Applications are currently open — the call was published by Xjenza Malta on 7 May 2026, with a submission deadline of 1 July 2026.

• €200,000 base grant
• +€25,000 sub-grant available only for projects enrolled in TARF or the MDIA Sandbox
• Effective maximum possible funding: €225,000

Enterprises and research performers in Malta undertaking applied research with a clear digital innovation focus.

• Researcher and developer time across the project
• Applied AI research and experimental development
• Technical services and research inputs

Up to €10,000 for small start-ups with a viable early-stage concept. Software development is an explicitly eligible activity. Non-repayable. Scheme runs to 2026.

Covers payroll, asset procurement, technical services, and setup costs. Support starts from €500k. Repayable advance, not a grant. Open through 2026.

Equity shareholding up to €500,000 per start-up. Total fund: €10m. Targets high-growth tech ventures including AI. Government-backed co-investment model.

• YouStartIT (MITA Innovation Hub): accelerator with dedicated AI track for early-stage AI businesses.
• TAKEOFF Seed Fund: seed funding for researchers/entrepreneurs. Government has specifically increased funding for AI ventures.

EU-funded hub run by MDIA, MCESD, and University of Malta. Free, open services for SMEs, small mid-caps, and public sector: technology testing, training, business support, and access-to-finance advice.

Free AI training, certifications, and tool access, part of the national drive to build an AI-literate workforce. Central digital upskilling pillar for individuals and businesses.

Malta's first High Performance Computer, hosted at the Digital Innovation Hub. SMEs and start-ups receive complimentary access to AI infrastructure, cloud resources, and computing capacity.

Malta Budget 2026 commits €100 million to accelerate AI, cybersecurity, AR/VR, blockchain, and HPC adoption across the economy. This flows through schemes and initiatives over the coming years.