Tax credit scheme for electric vehicle leasing, recharging

Malta Enterprise has launched a scheme that offers businesses that are leasing electric vehicles some of their money back through tax credits.

The scheme also entitles companies that invest in recharging infrastructure for electric or hydrogen vehicles to receive tax credits and/or have Malta Enterprise pay their interest rates for three years if they obtain a loan.

Malta Enterprise CEO Kurt Farrugia said the government entity plans to accept applications until September 2026. However, if the scheme’s €7.5 million budget is used up before that date, applications may close earlier.

Economy Minister Silvio Schembri said the scheme is being announced in line with the EU’s goal of becoming the first climate-neutral continent by 2050, incentivising the transition to more sustainable transport.

Businesses that apply for the ‘Green Mobility Scheme’ must have at least five full-time employees and be registered on the Malta

Business Registry, among other criteria. For both initiatives, small businesses can get more tax credits than larger firms. Small businesses applying charging infrastructure can get 55% of their investment in tax credits if their business is in an assisted area.

Assisted areas are specific locations earmarked for industrial development.

Applications until September 2026

Small businesses outside assisted areas can get half their money back in tax credits. Large businesses can have a quarter of the money spent on procuring, installing and commissioning of recharging infrastructure written off.

For leasing, Malta Enterprise will give a tax credit based on the extra cost of leasing an electric or hydrogen-powered vehicle when compared to an internal combustion one.