Rent Subsidy 2020 Scheme launched

After the publication of the Rent Subsidy Regulations,Malta Enterprise has now launched a Rent Subsidy 2020 Scheme. The scheme assists limited liability companies, Co-operatives and self-employed individuals that require industrial space to commence a new business activity, to implement growth plans, to handle an increase in orders and/or to carry out process innovations required to increase efficiency. The scheme has a budget of €2.5 million. The aid is awarded in the form of a cash grant to subsidize costs incurred to rent industrial premises.

Businesses engaged in manufacturing, maintenance and repairs of motor vehicles, repair of machinery and equipment and other industrial activities may benefit from this scheme. Applicants who are ‘single undertakings’, as defined, must show that in the preceding two fiscal years they have not been employing more than 100 employees on a full-time basis and they did not have an annual income exceeding €10 million. For companies, the balance sheet total should not have exceeded €10 million in the two preceding fiscal years.

Eligible rental costs must be in respect of an identified property rented from a third party in the private sector which is not related to the single undertaking. Public property, showrooms, display areas and similar properties are excluded from the scheme. The rent agreement must have commenced not earlier than one year prior to the date when the application is submitted to Malta Enterprise.

The maximum aid is €25,000 per annum per single undertaking subject to a capping of 50% of the cost. The support may however be approved for three consecutive years, thereby increasing the maximum aid to €75,000 per single undertaking over a three year period. Once the application is approved, a Letter of Approval will be issued by Malta Enterprise outlining the support of the Grant as well as other applicable terms and conditions. Applicants must also adhere to the applicable State Aid Regulations.

The scheme is applicable retrospectively from 1st February 2020 and closes on 31st December 2022. Malta Enterprise has published its own Guidelines, which provide more details as well as terms and conditions. The online application form has also been published.