Malta is one of the few countries around the world which approved the use and possession of medical cannabis with a prescription.
In March 2018, the President of Malta signed into law, legislation that governed the use of medical marijuana, and it is now taking aggressive steps towards making the production of such products a new, local industry.
The “Production of Cannabis for Medicinal Use Act, 2018’ provides all of the legal guidelines for those that wish to produce cannabis for medicinal use and it describes the process that needs to be followed in order to apply.
Steps to produce medical marijuana in Malta
In order to apply for the necessary permissions and licences to produce medical marijuana, a number of steps must be followed:
- A letter of intent must be obtained from Malta Enterprise after making an application with them directly.
- The applicant must ensure that they are in full compliance with both the provisions of the Act, as well as international obligations resulting from any treaty that Malta may from time to time be party to.
- The applicant must also show compliance with all regulations relating to the production of medical products, as laid out in the Medicines Act
- At this point, the applicant is able to apply for a licence with the regulatory authority.
Europe is home to more than 740 million people, a population more than double the roughly 360 million people that live in the United States and Canada—the two largest cannabis markets today.
The companies that secure significant market share in Europe—once the market opens up—will likely become the largest cannabis companies in the world.
Europe has the potential to be the largest medical cannabis market in the world with potential of topping €50 Billion.
Schemes to aid pharmaceutical companies in Malta
Investment Aid Tax Credits 2014-2020
This incentive is aimed for projects where the ‘start of works’ is on or after 01/01/2018 and before 31/12/2020.
The total amount of investment aid (in the form of a tax credit) that may be awarded in terms of these regulations for a given investment project shall not exceed:
- 30% of the qualifying expenditure for an undertaking which qualifies as a ‘Small’ undertaking
- 20% of the qualifying expenditure for an undertaking which qualifies as a ‘Medium-sized’
- 10% of the qualifying expenditure for an undertaking which qualifies as a ‘Large’ undertaking
Business Development and Continuity Scheme
Tax credits or cash grants of up to €200,000 over a period of 3 fiscal years may be awarded to undertakings that carry out a project aimed to expand their business operation and establish an operational base in Malta or to consolidate their current operations.
The value disbursed in any fiscal year shall not exceed the wage costs incurred by the single undertaking in that fiscal year.
Eligible Costs are:
- Relocation of Key Personnel
- Temporary Secondment of Personnel
- Relocation Cost of Assets
- Operating Expenditure
- Wages and Salaries
- Start-Up Finance: financing innovative undertakings in their early stages of development
- Micro Guarantee: facilitating access to debt finance for smaller business undertakings
- Business START: assisting small start-ups at the early stage of their development