Seed Investment Scheme 

The Seed Investment Scheme (hereinafter, ‘the Scheme’) has been reintroduced by virtue of LN 45 of 2024, the Seed Investment Scheme (Income Tax) Rules 2024 (hereinafter, ‘the Rules’). The Rules shall be deemed to have come into force on 1 January 2024 in respect of investments made as from basis year 2024, and shall have effect until 31 December 2026.

The Scheme offers incentives in the form of tax credits to qualifying natural persons, who invest, on their own behalf, in fully paid up equity shares in qualifying start-up businesses as defined in the Rules.

The salient features of the Scheme are outlined below:

• Qualifying investors, as defined in the Rules, can receive a tax credit equivalent to 35% of the value of investments made in one or more qualifying companies, up to a maximum of €250,000 tax credits per annum;
• A qualifying company cannot raise more than €750,000 in total, via qualifying investments made under this Scheme;
• A company seeking status as a qualifying company must be incorporated in Malta or controlled and administered from Malta or has a place of business in Malta and must not be listed on any recognised stock exchange;
• A qualifying company must satisfy a number of criteria, related to number of employees (less than 10), gross assets before issuance of equity shares to qualifying investors (not exceeding €250,000) and years of existence (less than three years following its first commercial sale);
• Natural persons and companies are required to apply to the competent entity for a formal determination of the status of qualifying investor and qualifying company respectively; and
• A qualifying investor shall invest in a qualifying company within a period of two years from when the qualifying company is first issued with a compliance certificate for the status of a qualifying company.

How can we help?

Deloitte Malta is able to assist in answering your queries, so please do not hesitate to reach out to us for any further guidance you may require.

In addition, Deloitte Malta is able to assist with the preparation of the required applications and any supporting documentation, as well as document submission and any required follow-ups.