Malta Budget 2026

Malta’s economy continued its growth trajectory, with a 5.9% real GDP growth during the first half of 2024.

Inflation has slowed down and is expected to decrease from 5.6% in 2023 to 2.5% in 2024 and 2.1% in 2025.

Cost-of-Living Adjustment (COLA) for 2025 is expected to be €5.24 per week, denoting a lower increase in inflation compared to prior years.

The minimum wage is expected to increase by €8.24 per week and will reach €221.78 a week as part of the agreement reached last year between the social partners and Government.

Widening of income tax bands for resident taxpayers, on single, married and parent computations. Income tax reductions are expected to range between €345 and €675.

Employers are expected to be required to offer employees the opportunity to contribute to an occupational pension scheme. Details are expected to be announced following discussions with all stakeholders.

Pension increase of €8 per week. Income tax exemptions on pension income shall be adjusted to compensate for these increases.

Tax deductions for private schooling are set to increase: €3,500 for kindergarten, €4,600 for primary schools, and €6,500 for secondary schools.

The Government will continue to support athletes and sportsmen through aid provided by SportMalta to the Maltese Olympic Committee.

Malta shall be launching a comprehensive and forward-looking Vision for 2050, which will serve as a plan for the economic, social, and environmental development of the country, focusing on digital innovation, infrastructure, education, healthcare, and sustainability.

The concession on the reduction in stamp duty from 5% to 1.5% shall be extended when family businesses are transferred inter vivos to children and younger generations.

Out of the 59 projects identified by the MFSAC, 19 have been successfully completed. New legislation shall be enacted to further enhance key sectors, including sustainable finance, family office services, aircraft rentals, fintech, and wealth management.

A strategic focus on expanding emerging sectors within Malta’s gaming industry, including video games, esports, and immersive technology.

During 2025, a dedicated visa for esports athletes will aim at attracting professional gamers and support the growth of the esports sector.

To meet the targets of a carbon-free economy by 2050, the Government will continue to provide support to households who invest in renewable energy systems and equipment that increase efficiency in the use of energy and water in their homes. 

The private sector will continue to be incentivised to develop large renewable energy installations.

The production of clean energy will have a direct impact on the sustainable economy and the environment. This will give rise to new opportunities in relation to the generation of energy and investment in the green and blue economy.

Buyers of new electric cars, small vans, and motorcycles will receive grants of up to €8,000 for cars or vans and €2,000 for motorcycles, with new conditions being introduced.  

During 2025, electric and plug-in hybrid vehicles with a 50km+ electric range will continue to be exempt from registration tax and annual circulation tax for 5 years from the year of registration.  

The car scrappage scheme is to amount to  €1,000 for scrapping old cars and vans, to increase by €1,000 in the case of old vehicles registered in Gozo.

The exemption on tax or duty levied on the first EUR 750,000 of consideration for residential properties which have been vacant for a least 7 years or situated in an Urban Conservation Area shall be extended.

First-time buyers of eligible properties are to continue benefitting from a one-time grant of EUR 15,000 where the acquired property is situated in Malta, which increases to EUR 40,000 where the property is situated in Gozo.

Removal of VAT on sanitary products and certain medical accessories.