Following the publication of Regulations, Malta Enterprise launched a Rent Subsidy 2020 Scheme to alleviate the industrial rental cost of businesses.
Further to the publication of the Rent Subsidy Regulations, on 14 May Malta Enterprise launched a Rent Subsidy 2020 Scheme. The scheme financially assists businesses and self-employed that require industrial space to commence a new business activity, implement growth plans, handle an increase in orders and/or 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 subsidise costs incurred for rental of industrial premises.
The scheme is applicable to businesses engaged in manufacturing, maintenance and repairs of motor vehicles, repair of machinery and equipment and other industrial activities. Applicant ‘single undertakings’, as defined, must show that in the preceding two fiscal years they had not been employing more than 100 employees on a full-time contract 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 cap 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.
The scheme is applicable retrospectively from 1 February 2020 and closes on 31 December 2022.
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