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MVC matches private investment in Maltese startups to help them grow faster, go further, and bring national impact along the way.
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The Seed Investment Scheme (SIS) has been introduced in order to help start-ups raise equity finance.
The Seed Investment Scheme offers incentives in the form of tax credits to individual investors resident in or operating in Malta, who invest in a qualifying Maltese start-up or early stage companies. The scheme offers young entrepreneurs a route to vital funding in the initial stages of their project by effectively minimizing the risk to investors.
Example: Jenny invests €20,000 in SIS shares in the 2022 to 2023 tax year in SIS. The relief available is €7,000 (€20,000 at 35%). The amount owed for the year (before relief) is €15,000 which she can reduce to €8,000 as a result of her investment.
In order for a person to qualify as a ‘qualifying investor’ in terms of the Rules, an investment must be made by way of the subscription to a fresh issue of fully paid up, non-redeemable equity shares at par on the investors own behalf in a qualifying company.
A company will qualify as a ‘qualifying company’ if it satisfies a number of conditions (as set out in the Rules) and provides the required documentation as part of the application process. It will then be issued with the relative compliance certificate by MIMCOL.
In order for a person to qualify as a ‘qualifying investor’ in terms of the Rules, an investment must be made by way of the subscription to a fresh issue of fully paid up, non-redeemable equity shares at par on the investors own behalf in a qualifying company.
The Seed Investment Scheme (SIS) offers incentives in the form of tax credits to investors in return for investment in a qualifying Maltese start-up or early stage companies. The scheme offers young entrepreneurs a route to vital funding in the initial stages of their project by effectively minimising the risk to investors.
SIS will remain effective until the 31st December 2026 (unless extended by the Ministry for Finance) but shall also cease to be active upon the application of the scheme to €5 million.
Investments in a qualifying company shall not, in aggregate, exceed €750,000.