Digitalise Your SME: What Malta’s Grant Really Covers

Digitalise Your SME is a Maltese grant that pays part of the cost of new software, hardware and other digital systems. It can reach €128,400, or €235,400 for a project with AI in it, which is why it gets so much attention. It’s also a bigger, stricter scheme than most of the coverage suggests.

We read the official Guidance Notes (version 2.0, 22 April 2026) so you don’t have to. This guide covers what the grant pays for, who it suits, and the point most summaries skip: whether it covers a website. It’s our reading of the rules, not official advice.

What is Digitalise Your SME?

It’s a grant run by the Measures and Support Division and funded through the European Regional Development Fund, with a contribution from the Malta Digital Innovation Authority (MDIA). This second call has a budget of €15,000,000 and adds a dedicated allowance for AI projects.

It works as a rolling call. Applications are gathered at each cut-off date, then assessed. Those scoring at least 50 out of 100 are awarded a grant, as long as there’s budget left, and budget goes out in the order complete applications arrive. An application that needs fixing counts from the date you fix it, so a complete first submission matters.

Does it cover a website?

This is the question we’d want answered first, and the honest answer is not clearly, and a plain website probably not.

The Guidance Notes never list websites as an eligible cost. What they list is software, both off-the-shelf and custom, along with hardware, analytics tools, cybersecurity, cloud computing and “other hardware, software or Digital Solutions” that the Division may consider eligible. Three rules then narrow that down:

• Design, marketing and consultancy fees are ineligible. That rules out most of what a redesign or a marketing site is paid for.
• Spending must have “a productive purpose not merely for embellishment”, so a site that only looks better is a weak case.
• The item must last more than three years, and maintenance costs aren’t covered.

Our reading is that custom software which changes how your business runs has a far better chance than a brochure site. Think of a customer portal, a booking or ordering system connected to your stock, or a platform that replaces manual work. An online shop sits somewhere between the two, and the notes don’t name it either way.

Your website does still count in one place. The digital assessment you need for the application scores you on 12 technologies, and they include a website with sophisticated functions and e-commerce sales. That helps your score for a top-up, covered below, but it doesn’t make the website itself an eligible cost.

Who can apply?

Micro, small and medium-sized enterprises in an eligible activity, whatever their legal form. The project has to be based in either Malta or Gozo, not both. These are the main reasons you’d be turned away:

• Your main activity is agriculture, forestry or fishing, or involves tobacco, gambling or betting.
• You sell or could make the thing you’re applying for. A software company can’t get a grant for software it could build itself.
• Your total eligible cost is below 2% of your net assets.
• Your net assets are negative, unless you’re a start-up under three years old and within the limit of €120,000.
• You’re in insolvency proceedings, or you’ve already received public funding for the same activities.

If your net assets are below 40% of the project cost, the eligible cost is capped at 250% of net assets, unless you give a guarantee for the difference. Start-ups have a lower threshold.

How much is it worth?

The 7% flat rate is added to the grant to cover indirect costs. So a project with €100,000 of eligible costs in Malta would be awarded €50,000 plus €3,500, or €53,500 in all. That figure only shows how the scheme’s sums work.

Two top-ups can raise the percentage. Cybersecurity, Internet of Things, AI, big data, cloud computing and quantum items get an extra 10% on those items. Businesses that use 6 or fewer of the 12 digital technologies and reach at least 7 through the project get an extra 5%.

There are two caps to keep in mind. All your ongoing grants across SME Enhance, SME Enhance (de Minimis) and this scheme, including linked companies, can’t pass €128,400, not counting the AI allowance. De minimis aid is also capped at €300,000 over any three years.

What it pays for

• Off-the-shelf and custom software, with subscriptions counted for two years
• Hardware such as laptops, monitors, tablets, routers and switches
• Analytics tools, big data, cloud computing and Internet of Things
• Cybersecurity systems
• Installation and training, when included in the purchase price and from the same provider

What it doesn’t pay for

• Design, marketing and consultancy fees
• Repairs, maintenance and maintenance agreements
• VAT and other taxes
• Mobile phones, network cabling and electrical work
• Used or refurbished equipment
• Separate training, insurance and bank charges

The AI allowance

AI projects can raise their ceiling by up to €100,000, or €107,000 with the flat rate, for AI cost items only. That covers buying, adapting and configuring AI tools, connecting them to systems such as your ERP or CRM, the hardware or cloud capacity they need, cybersecurity, testing and user training from the same supplier.

The work has to adapt existing technology, not invent new models or carry out research and development. Up to 25% of the allowance can go on your own staff’s hours, at a set rate of €19.62 an hour.

You’ll also need three extra documents: a scoping report, an Ethical AI and Societal Well-Being assessment, and a productivity gains forecast. If you’re not sure whether your idea counts as AI work, Annex VII of the notes goes through the eligible actions in detail. If you’re still working out what an agent could do for you, start with What is an AI agent?, or see our AI agents service.

What you need to apply

• An Investment Proposal, or three quotations for each item from independent, unrelated suppliers, with the technical specifications.
• A Digital Intensity Assessment from MDIA, done before the project. You book this with them, so allow time for it.
• Audited financial statements for the two previous years, or the alternatives the notes allow for sole traders and start-ups.
• A tax compliance certificate from the Malta Tax and Customs Administration, dated within the last three months.
• Evidence of match financing, showing you can pay your share.
• The signed declaration, a de minimis declaration, your NACE code confirmation and a project schedule.

Applications are made online through the Structural Funds Database. Grant requests above €60,000 also go through a financial viability check.

How the money reaches you

This is mainly a reimbursement grant, so plan for the cash flow. You pay the suppliers, then claim the money back with invoices, proof of payment and reports. Advance payments may be possible but can’t pass 40% of the grant, and interim claims are possible once the main components are delivered.

Projects run for 6, 12, 18 or 24 months from the Grant Agreement, and everything must be finished by 30 June 2029. Claims are due within three months of the end date, after which 0.5% of the grant is deducted for every month you’re late. The investment then has to stay in place and working for at least three years after the final payment.

Is there still time?

The fondi.eu scheme page lists cut-offs roughly every two weeks, the last being 14 December 2026, and the notes say the scheme stays effective until 31 December 2026, subject to funds. Check that page for the next date, because funds can run out first.

If you already have audited accounts and a clear project, a late cut-off is possible. If you’re starting from an idea, that’s tight: you still need supplier quotes, an MDIA assessment and a compliance certificate. We don’t know whether another call will follow, but doing that groundwork properly would serve you either way, and rushing a weak application won’t.

Mistakes that sink an application

• Starting early. Actions may only begin after the Grant Agreement is signed, and that includes placing orders.
• Using connected suppliers. Suppliers must be independent of you and of each other, with no family ties. If that’s found out later, you can lose the grant.
• Vague quotes. All three need to meet the same technical specifications, and reimbursement is capped at the cheapest accepted quote or the invoice, whichever is lower.
• A generic pitch. The project’s quality counts for 30 of the 100 points and its impact for 35, so use real numbers, including return on investment and cost savings. Micro and small businesses score better on size.
• Double funding. You can’t claim another public grant or tax credit for the same activities.

FAQ

Digitalise Your SME questions

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How much can you get from Digitalise Your SME?

Up to €128,400 including the 7% flat rate, or up to €235,400 for projects that qualify for the AI allowance. The minimum grant is €25,000, and the grant covers 50% of eligible costs in Malta and 60% in Gozo.

Is a website eligible for Digitalise Your SME?

The Guidance Notes don’t list websites as an eligible cost, and they exclude design and marketing fees. Custom software with a clear productive purpose is a stronger case. Ask the Measures and Support Division before relying on it.

Can I use Digitalise Your SME and Micro Invest together?

Not for the same activities. The scheme requires that you haven’t received, and won’t seek, other public funding for what you’re applying for.

Can I start the project before I'm approved?

No. Actions may only begin after the Grant Agreement is signed, so costs from before then won’t be covered.

When does Digitalise Your SME close?

The last cut-off listed on fondi.eu is 14 December 2026, and the Guidance Notes say the scheme remains effective until 31 December 2026, subject to availability of funds.

Can a sole trader apply?

Yes. The scheme is open to SMEs whatever their legal form, and sole traders can provide certified tax returns and profit and loss statements in place of audited accounts.

Sources

Measures and Support Division, Digitalise your SME Guidance Notes, version 2.0, 22 April 2026, and the scheme page on fondi.eu, checked on 6 November 2026. Rules can change, so confirm the details there before you apply.