Family Business Office Incentives
Advantageous loan debt financing by Bank of Valletta and Malta Development Bank up to a value of €750,000. For more information, kindly visit: bov.com/content/bov-family-business-success
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.
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.
Legal, Notarial, and Accountancy advisory services of €2,500 annually over five years up to a maximum of €12,500 for the purposes of assistance in the succession or business transfer of a family business.
Micro Investment of a maximum tax credit of €70,000 over a three year period.
Education and Training
Education and training for owners and their employees of up to €1,000 annually per family business.
Arbitration of up to five sittings with a value of €2,500 with the objective to establish the fair value of the business.
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.
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.