What the Internationalisation Strategy grant is
The Internationalisation Strategy grant is a non-repayable ERDF Malta grant administered by the Measures and Support Division (MSD), co-funded under the ERDF 2021 to 2027 operational programme. It part-finances the cost of an externally commissioned internationalisation strategy from an MSD-registered service provider. The maximum grant is €20,000 per undertaking, structured across two parts that can be applied for separately or together.
Aid is granted under the General Block Exemption Regulation (GBER), Articles 18 and 22. Among the eu schemes malta currently open, it is the advisory scheme aimed specifically at SMEs with export ambitions or plans to expand into foreign markets. For a side-by-side view of all six current schemes, see our overview of EU funding in Malta.
The implementation period is up to 12 months from the grant agreement (6 or 12-month fixed periods). The final scheme deadline is 30 June 2029, subject to budget availability. Maximum two applications per undertaking — one per part.
The two-part structure
The scheme is designed to let an SME build an international case in two stages rather than committing to a single comprehensive piece of work. The structure works for businesses at different points on the export readiness curve.
Part 1: Opportunities study
An analytical study covering global opportunities, market analysis, feasibility assessment, and recommendations for market focus across any foreign markets. The deliverable identifies which markets are most worth pursuing for this specific business, given product fit, competitive landscape, regulatory environment, and operational feasibility.
Part 1 is the right starting point where the business knows it wants to expand internationally but has not yet decided which country or region to enter. Maximum grant: €10,000. Aid intensity: 50% (60% for start-ups under five years).
Eligibility note: Part 1 requires at least one year of active trading at the application date. This is a structural requirement — newly registered businesses with no trading history cannot apply for Part 1.
Part 2: Country-specific strategy
A comprehensive strategy document for one or more selected countries, covering country analysis, market entry strategy, marketing and sales strategy, financial and operational planning, and risk analysis. The deliverable is the implementation plan for entering a defined market.
Part 2 can follow Part 1 (recommended sequence) or be commissioned independently if the business already knows the target country — for example where an export channel is already partially established, or where senior management has prior international experience in the target market. Maximum grant: €10,000.
Combined application
An SME pursuing both parts can apply separately for each (one application per part, max two per undertaking). Combined maximum grant: €20,000. The sequence — Part 1 first, then Part 2 — is the standard pattern for businesses building an international case from scratch.
Who qualifies
Enterprise size
The scheme is open to micro, small and medium-sized enterprises established in Malta. Unlike the Marketing Strategy scheme, medium enterprises are eligible here.
- Micro enterprise: fewer than 10 staff, annual turnover or balance sheet up to €2M
- Small enterprise: fewer than 50 staff, annual turnover or balance sheet up to €10M
- Medium enterprise: fewer than 250 staff, annual turnover up to €50M or balance sheet up to €43M
Size is assessed on a consolidated basis where required.
Trading history
For Part 1, the business must have at least one year of active trading at the application date. For Part 2, the standard eligibility applies (consult the current Guidance Notes for any additional Part 2 conditions). Most internationalisation work makes commercial sense only where the domestic baseline is established — the scheme structure reflects that.
Aid intensity
| Applicant status | Aid intensity | Maximum grant (combined) |
|---|---|---|
| Micro/Small start-up (=5 years from registration) | 60% | €20,000 |
| Micro/Small (>5 years from registration) | 50% | €20,000 |
| Medium enterprise | Lower (confirm in Guidance Notes) | €20,000 |
Standard exclusions
Standard ERDF exclusions apply: primary agriculture, forestry and fishing (NACE Section A), tobacco, gambling, undertakings in collective insolvency, and those subject to outstanding EU recovery orders. Confirm sector eligibility on fondi.eu.
Why ERDF-fund the strategy before market entry costs
Market entry is rarely the cheap step. By the time a Maltese SME is selling into a foreign market, the cost stack typically includes local entity establishment, regulatory and IP work, distribution arrangements, sales and channel development, localised marketing presence, and ongoing operational coverage. The strategy that informs all of that is a small fraction of the total — but it determines whether the rest is well spent.
The economics
A typical opportunities study and country-specific strategy package might cost €30,000 to €40,000. At 50% aid intensity, the grant covers €15,000 to €20,000 — meaning the business pays €15,000 to €20,000 net for analysis that informs a market entry decision running into six figures. The leverage is in the decision, not the document.
What the strategy de-risks
Regulatory requirements (licensing, compliance, product approvals) often surface late in poorly scoped market entry projects. A funded strategy puts them on the table at the start, when the response is cheap. The same applies to channel structure, pricing, distribution economics, and risk concentration. A well-built strategy turns market entry from a sequence of discoveries into a sequence of decisions.
Documented basis for board and investor approval
Where the next step requires board or shareholder approval, a strategy produced by an external MSD-registered consultant carries more weight than an internally written case. The independence and the analytical structure of the document do work the internal version cannot do.
It strengthens follow-on grant applications
Where the internationalisation case includes digital infrastructure, equipment for a new production line, or other capital investment, the strategy provides the structured business case that a follow-on SME Enhance or Digitalise your SME application needs. The internationalisation strategy effectively pre-funds the analytical work that would otherwise sit inside the capital grant application.
What the grant covers and excludes
| Cost | Eligible? | Notes |
|---|---|---|
| External consultancy fee for Part 1 opportunities study | Yes | Up to €10,000 grant |
| External consultancy fee for Part 2 country-specific strategy | Yes | Up to €10,000 grant |
| Market research embedded in the engagement scope | Yes | Where part of the agreed strategy work |
| Trade mission travel, flights, accommodation | No | Strategy only — travel and missions are excluded |
| Exhibition and trade fair fees | No | Outside the strategy scope |
| Marketing material production | No | Brochures, video, photography — excluded |
| Sales activity in the target market | No | Execution following the strategy is not eligible |
| Local establishment costs (legal, registration, premises) | No | Out of scope of this scheme |
| Related-party consultancy | No | Service provider must be unrelated and autonomous |
| VAT and duties | No | Standard ERDF position |
How to apply
Applications are submitted through the Structural Funds Database (sfd.gov.mt). The process runs across four phases per part.
Phase 1: Preparation
- Confirm SME size and trading history. For Part 1, the one-year minimum trading requirement applies.
- Decide on Part 1, Part 2, or sequential applications for both parts.
- Identify a service provider on the MSD register. Confirm registration before engagement.
- Brief the consultant on the scheme's structural requirements for the relevant part.
- Confirm no engagement letter has been signed and no invoice issued — costs incurred before the grant agreement are ineligible.
Phase 2: Application and grant agreement
Submit the application through sfd.gov.mt. MSD assesses; if approved, a grant agreement is issued setting out the eligible cost, grant amount, and implementation period (6 or 12 months).
Phase 3: Engagement and delivery
Sign the consultancy engagement after the grant agreement is signed. The service provider produces the deliverable to the scheme specification. The applicant pays the invoice and retains supporting documentation.
Phase 4: Claim and payment
Submit the claim with the strategy document, consultant invoice, proof of payment, Declaration of Unrelation, and any other required documentation. Grant is paid in arrears after MSD verification.
Common reasons applications fail
Part 1 applied for without one year of trading
The one-year trading requirement for Part 1 is structural. Newly registered businesses with no trading record cannot apply for Part 1. The alternative is to consider Part 2 if the country and basic case are already defined — or to wait until the trading record is in place.
Strategy missing scheme-required components
Part 1 must cover opportunities, market analysis, feasibility, and market focus recommendations. Part 2 must cover country analysis, market entry strategy, marketing and sales, financial and operational planning, and risk analysis. A deliverable that omits required components fails the structural test.
Trade mission and travel costs in the budget
The scheme funds the strategy, not the activity. Including flights, accommodation, exhibition fees, or sales travel in the eligible cost line leads to disallowance.
Related-party consultant
Common ownership or directorship between the applicant and the consultant disqualifies the engagement. The Declaration of Unrelation must be genuine.
Engagement before grant agreement
Pre-agreement engagement letters, deposits, or invoices make the cost ineligible. The sequence is: apply, sign grant agreement, then engage.
Frequently asked questions
How much is the Internationalisation Strategy grant?
Maximum €20,000 per undertaking: €10,000 Part 1, €10,000 Part 2. Aid intensity 50% for micro and small enterprises trading more than five years, 60% for start-ups under five years. Lower for medium enterprises — confirm in current Guidance Notes.
Who qualifies?
Micro, small and medium-sized enterprises established in Malta. Part 1 requires at least one year of trading. Maximum two applications per undertaking (one per part).
What is the difference between Part 1 and Part 2?
Part 1 is an opportunities study across foreign markets — what to enter and why. Part 2 is a country-specific strategy — how to enter a defined market. Part 1 can be done independently before committing to a country; Part 2 can follow Part 1 or be commissioned independently if the country is already chosen.
Does it fund market entry costs or trade missions?
No. The grant funds the strategy document only. Travel, missions, exhibition fees, marketing materials, sales activity, and local establishment costs are all excluded.
Can a medium enterprise apply?
Yes. Medium enterprises are eligible — unlike the Marketing Strategy scheme, which is restricted to micro and small. The medium-enterprise aid intensity is lower; confirm in the Guidance Notes.
Why fund the strategy before market entry?
Market entry costs typically dwarf the strategy budget. A documented strategy tests the case before the larger commitment, identifies regulatory and operational requirements, and gives the board a defensible basis for the investment. Funded at 50% to 60%, the net cost of testing the case is well below the cost of finding out post-commitment.
Can it be combined with other schemes?
Yes — the same eligible cost cannot be double-funded, but the internationalisation strategy can feed into a follow-on SME Enhance or Digitalise your SME application where the international expansion involves capital investment.