AI & Digital Funding Schemes in Malta — 2025–2026

Who can apply

Open to micro, small, and medium enterprises registered in Malta or Gozo. Start-ups qualify up to 5 years old (micro and small only), provided the business operates in an eligible economic activity and is not in financial difficulty.

What the grant covers

• Bespoke software builds
• Off-the-shelf software (COTS)
• AI, Big Data & Cloud tools
• Cybersecurity & IoT systems
• Hardware such as servers, laptops, and routers
• Staff training on the newly acquired technology
• A flat 7% uplift for indirect costs

Support rates

• 50% base rate for Malta-based projects
• 60% base rate in Gozo
• An extra +10% where the project involves AI, IoT, Cybersecurity, Cloud, or Quantum
• +€107,000 AI top-up: AI-focused projects can push the €128,400 base grant to €235,400

Reaching the full 85% rate means stacking several eligibility bonuses at once — Gozo location, startup status, the advanced technology uplift, and digital intensity improvements. In practice, most applicants land between 50% and 70%.

Calls and cut-offs

• The scheme budget has been tripled to €15M
• Call 1 remains open on rolling cut-offs until 30 Jun 2026
• Call 2 launches 1 Jul 2026; its first cut-off is 31 Jul 2026
• State aid is capped at €300k over 3 years under de minimis rules

Who can apply

SMEs of every size — micro through medium — working in eligible economic activities. Start-ups up to 5 years may apply, as long as the company is legally registered and not in collective insolvency.

Where it applies

• Productive investment that lifts competitiveness
• Smart economic transformation and innovation
• Bringing digital innovation into day-to-day operations
• Digital investment tied to sustainability goals

How projects are scored

Projects need a score of ≥50% across four axes — risk assessment, project excellence, impact and sustainability, and quality of implementation — with financial viability reviewed as a separate check.

What it won't fund

• Repairs and routine maintenance
• Second-hand or refurbished equipment
• The agriculture, tobacco, and gambling sectors

How it works

A lump sum of €4,000, covering 80% of costs, for commissioning an externally prepared business report — an outside expert’s assessment of your planning and operations.

Who can apply

Any micro, small, or medium enterprise registered in Malta. There is no fixed call — applications roll year-round.

What it pays for

• Business Plans
• Process & Systems Reviews

Where the scheme’s criteria allow, Born can direct this support towards AI-readiness and digital transformation reviews.

How it works

Not a cash grant — a tax credit offset against future income tax. Businesses employing up to 50 people can claim back 45% of approved expenditure; for companies, submissions close 27 May 2026.

What it pays for

• Software licences and subscriptions
• IT equipment with a useful life of at least 3 years
• Wage growth beyond 3%
• Other qualifying business investment

Credit ceilings

• Capped at €50,000 across 3 consecutive fiscal years
• Raised to €70,000 for businesses that are Gozo-based, family-run, or majority (>50%) female-owned
• Gozo-based businesses earn a further 20%

Budget 2026 enhanced limits

For expenditure incurred from 2026 onwards, Budget 2026 raises the ceilings:

• 65%, capped at €65,000, in Malta
• Up to 85%, capped at €85,000, for eligible Gozo-based, family-run, or female-owned businesses

The new ceilings cover 2026 expenditure, expected to become claimable in 2027; the 45% / €50,000 / €70,000 figures above still govern the active claim window for 2025 spending.

Compared with cash grants

The paperwork is lighter than a grant application, and it stacks with other schemes within de minimis limits — the trade-off is that value arrives as reduced future tax rather than cash in hand.

Who can apply

Both SMEs and large enterprises, provided the project adds economic value to Malta — new ventures, expansions, transformations, or digital innovation — and started after 1 January 2024. Gambling, real estate, and financial services activities are excluded.

What qualifies

• Digital transformation programmes
• Launching new or innovative business models
• Environmental and sustainability measures
• Cross-sector and collaborative projects
• Expanding operations

The application

Applications are judged on merit and need a full business case: project plan, financial projections, and evidence of the economic value created — demonstrable job creation, competitiveness gains, or market expansion. The deadline has been extended to 30 September 2030.

What evaluators look for

• The new business opportunities a project opens
• Skilled jobs created
• Gains in market competitiveness
• Broader market reach

The streams

• Feasibility Studies (FONDI.eu) — up to €100k for SMEs and small mid-caps, from a €2m budget; deadline Dec 2026
• MDIA MARG — up to €40k for AI research, backed by a €1.2m seed fund
• R&D Incentive (Malta Enterprise) — industrial research tackling scientific or technological uncertainty; deadline 30 Sep 2026
• FUSION Programme (Xjenza Malta) — the national R&I funding streams

What it pays for

• Wages for researchers and developers
• Contracted research and technical services
• Patent and IP registration, funded up to 90% through the IPR Voucher
• Acquiring technical knowledge
• Feasibility work on novel AI products or services

How it works

Funds a 24-month applied research project in digital innovation, with AI ranked as Priority Area 1. Xjenza Malta published the current call on 7 May 2026 and applications are open until the 1 July 2026 submission deadline.

How the grant stacks

• A base grant of €200,000
• A +€25,000 sub-grant, reserved for projects enrolled in TARF or the MDIA Sandbox
• Bringing the effective maximum to €225,000

Who can apply

Malta-based enterprises and research performers running applied research with a clear digital innovation focus.

What it pays for

• Researcher and developer time over the project's lifetime
• Experimental development and applied AI research
• Research inputs and technical services

Business Start (seed grant)

A non-repayable seed grant of up to €10,000 for small start-ups with a viable early-stage concept — and software development is explicitly listed as an eligible activity. Runs to 2026.

Start-up Finance (repayable advance)

A repayable advance rather than a grant, with support starting from €500k. It can fund payroll, asset procurement, technical services, and setup costs, and stays open through 2026.

Malta Venture Capital Fund

A government-backed co-investment vehicle taking equity of up to €500,000 per start-up from a €10m fund, aimed at high-growth tech ventures — AI included.

YouStartIT & TAKEOFF

• YouStartIT (MITA Innovation Hub) — an accelerator running a dedicated track for early-stage AI businesses
• TAKEOFF Seed Fund — seed capital for researchers and entrepreneurs, with government allocations specifically increased for AI ventures

Malta EDIH

An EU-funded hub operated by MDIA, MCESD, and the University of Malta, offering SMEs, small mid-caps, and the public sector free services: technology testing, training, business support, and access-to-finance advice.

"AI for Everyone" (Budget 2026)

The national upskilling push — free AI training, certifications, and tool access for individuals and businesses, aimed at building an AI-literate workforce.

Digital Innovation Hub & HPC Access

The Digital Innovation Hub hosts Malta’s first High Performance Computer, and SMEs and start-ups get complimentary access to its AI infrastructure, cloud resources, and computing capacity.

€100M Technology Investment Fund

Budget 2026 sets aside €100 million to push AI, cybersecurity, AR/VR, blockchain, and HPC adoption across the economy — funding that will surface through schemes and initiatives over the coming years.