Malta – The Ideal Launchpad for AI Technologies

In recent years, the Maltese Government has reaffirmed its commitment to positioning Malta as a forward-looking digital innovation hub, with artificial intelligence (AI) playing a central role in this transformation. Through the “National AI Strategy and Vision 2030” and its alignment with the broader Vision Malta 2050 framework, Malta is actively investing in AI infrastructure, ethical governance, and regulatory preparedness. The government continues to adapt to global technological shifts, including the implementation of the EU AI Act, and is supporting both public and private stakeholders in adopting responsible, human-centric AI solutions across all sectors.

Among the key incentives and support mechanisms currently in place are:

• A revised Patent Box Regime allowing qualifying beneficiaries to claim a deduction of up to 95% on gross income derived from eligible intellectual property (IP), in line with EU-compliant frameworks.

• Co-investment opportunities and equity-based funding for Maltese start-ups and scale-ups, particularly those leveraging AI and emerging technologies.

• Tax credits and fiscal incentives for investors contributing to innovation-led growth and sustainable digital transformation.

• Tailored support through Malta Enterprise, offering grants, advisory services, and internationalisation schemes to innovative businesses in AI, biotech, and green tech sectors.

• Planned reforms to capital markets and tax legislation, including exemptions on capital gains and stamp duty for share transfers in innovation-driven enterprises.

• Startup and Nomad Residence Visas, streamlining the relocation of founders, investors, and talent from outside the EU/EEA, with fast-tracked pathways to residence and employment.

• A dedicated AI Regulatory Sandbox, enabling businesses to test and deploy novel AI applications within a controlled, risk-mitigated environment supported by guidance from local regulators.

• Certification for Trustworthy AI Systems, recognising adherence to Malta’s Ethical AI Framework, which promotes transparency, accountability, and social responsibility in AI development.