What We Think

May 29, 2020

Rent Subsidy Regulations

Following the publication of legal notice 187 of 2020, ‘Rent subsidy regulations’, Malta Enterprise launched a rent subsidy scheme, which supports undertakings engaged in eligible activities who require industrial space as a temporary or permanent solution for the following activities:

 

  • Establishing a new business
  • Implementing growth plans
  • Handling an increase in orders
  • carrying out innovation geared at increasing efficiency

 

This scheme is applicable as from 1st February 2020 through till 31st December 2022 and has a total budget allocation of €2.5 million

 

SMEs need to satisfy all of the following criteria in order to be eligible:

 

  1. Legal form: the applicant must be incorporated under the Companies Act as a partnership en nom collectif, en commandite or a limited liability company, or must be registered as a Cooperative under the Co-operatives Societies Act. Self employed individuals registered with Jobplus are also eligible;

 

  1. Activity: the applicant must be engaged in the following sectors: manufacturing, maintenance and repairs of motor vehicles, repair of machinery and equipment and other industrial activities

 

  1. Employment: the applicant must be a single undertaking, which in the two fiscal years preceding the date of application, employed 100 individuals or less on a full-time basis;

 

  1. Annual turnover: must not exceed €10 million in the 2 fiscal years preceding the year in which the application is submitted

 

  1. Balance sheet total: should not have exceeded €10 million in the 2 fiscal years preceding the year in which the application is submitted

 

  1. State aid: applicant must abide by the applicable state aid regulations

 

Malta Enterprise may support costs incurred for the rental of industrial premises required to carry out or to facilitate the provision of eligible activities. In order to ensure the rental agreement is considered for assistance, the identified property must be rented from a third party in the private sector which is not, in any way, related to the single undertaking. The rental agreement must have commenced not earlier than one year prior to the date when the application was submitted to Malta Enterprise.

 

The total aid which may be granted to a single undertaking over a 12 month period is capped at €25,000. Support may be approved for a period of 3 consecutive years, bringing the maximum aid per single undertaking to €75,000.

 

Should you wish to learn more about this scheme and find out if you are eligible for rent subsidy, please contact Daniel Attard.

 

 

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