Family Business Office Incentives
Bank Financing
Bank Financing
Advantageous loan debt financing by Bank of Valletta and Malta Development Bank up to a value of €750,000. For more information, kindly visit:
Fiscal Incentives
Family Business Transfer
Business Transfer – Parents transferring their family business to their children during this one year period will benefit from a reduced stamp duty of 5% to 1.5% with no capping on the amount to be transferred. For further information refer to S.L. 364.15 Duty on Donations of Marketable Securities and Immovable Property used for Business (Exemption) Order as amended.
Immovable Property
When transferring a family business, duty on immovable property shall be chargeable on the first €500,000 of the value of the property transferred at the advantageous rate of €3.50 per €100.00.
For further information refer to Chapter 364 of the Laws of Malta ‘DUTY ON DOCUMENTS AND TRANSFERS ACT’, as amended.
Shares Interest
When transferring shares, interests in a partnership, trust or foundation no account shall be taken of the first one hundred and €150,000 or such other greater amount.
For further information refer to Chapter 364 of the Laws of Malta ‘DUTY ON DOCUMENTS AND TRANSFERS ACT’, as amended.
Governance Incentives
Advisory
Professional advisory and mediation services for the purpose of assistance in the succession or business transfer of a registered family business.
The increased benefit over previously launched schemes will see registered Family Businesses potentially avail of a maximum support of 15,000 Euro per family business in any rolling three (3) year period.The main aim of this scheme is to help family businesses, to address transitionary issues by facilitating access to advisory and mediation services.
This scheme is now available through the Family Businesses Grant Scheme and further information can be obtained by following the below link.
Micro Invest
Micro Investment of a maximum tax credit of €70,000 over a three year period.
Education and Training
Through these schemes Family Business owners and their employees will be able to receive training to develop and update their skills and knowledge. The current available scheme shall support training and knowledge transfer intiatives that will support owners and employees to acquire new skills, knowhow and knowledge.
Mediation
Under this scheme registered Family Business may apply to receive a grant to enable them to access meditation services where they encounter challenges that need to be resolved to ensure continuity and possible succession of the family business. More information about this new scheme shall be made available soon.
Investment Aid
The Incentive Guidelines for Investment Aid 2014 – 2020 launched by Malta Enterprise in 2014 specify that in the case of acquisition of the assets of an establishment only the costs of buying the assets from third parties unrelated to the buyer shall be taken into consideration. The transaction shall take place under market conditions. If aid has already been granted for the acquisition of assets prior to their purchase, the costs of those assets shall be deducted from the eligible costs related to the acquisition of an establishment. The Incentive Guidelines shall allow that where a member of the family of the original owner, or an employee, takes over an enterprise, the condition that the assets be bought from third parties unrelated to the buyer shall be waived.
Lease Renewal
The positive consideration of lease renewals occupying government premises; When a registered family business is occupying industrial government premises or land on lease or emphyteusis respectively as prescribed under Chapter 325 the Business Promotion Act and subject to the business satisfying all the conditions of the tenancy agreement, the Regulator shall recommend to the Malta Enterprise Corporation and, or Malta Industrial Parks to renew the tenancy, which renewal shall not be unreasonably withheld when the objectives of the renewal are to ensure the continuity of the family business between family members.
