Malta Budget 2026

Malta Budget 2026: What It Means For You

27 October 2025

The 2026 Budget brings a mix of stability, support, and forward-looking measures - but what does it mean for you?

Our dedicated Tax Team has simplified the key takeaways so you can quickly understand how this year's announcements affect your business, your family, and your future. Whether you're a business owner, a pensioner, part of the social community, a student, or an investor, our breakdown helps you identify the benefits and opportunities that matter most to your situation.

Explore our easy-to-read sections below, and download our full brochure for a deeper dive into the numbers, policies, and strategic insights.

“The Malta Budget 2026 marks a strategic shift toward a resilient, digitally enabled economy. With a focus on fiscal sustainability, innovation, and inclusive growth, it sets the stage for long-term value creation and Malta’s continued rise as a regional hub.”

Wayne Pisani Partner | Head of Tax, Regulatory and Technology | International Liaison Director

01.

What the budget means for

Families & Social Communities

Tax cuts for families with children worth €160 million over 3 years - up to €2,400 in tax savings per parent.
Children’s Allowance increased by €250 per child for families earning under €30,000 - additional €167 per child for those earning under €23,000.
In-Work Benefit increased by €75 per child.
Birth & Adoption Bonuses increased - €1,000 for first child, €1,500 for second, €2,000 for third or more.
Fostering Allowance increased to €6,760/year.
Allowance for post-secondary education: €500 per child.
Social housing support continues with €12.6 million allocated.
First-Time Buyer scheme renewed: €1,000/year for 10 years.

02.

What the budget means for

Business Owners & Entrepreneurs

€50 million in support for the commercial community. The support includes tax incentives, investment grants, and wage subsidies.
MicroInvest tax credits increased- Up to €65,000/year in Malta, €80,000/year in Gozo.
New tax credit: Businesses investing in Machinery, Software, Cybersecurity, IT equipment, Automation tools will be eligible for a tax credit worth 60% of the investment value.
Tax benefit for wage increases:
- 65% of wage increase covered for employees with 4+ years tenure (up to €780/year).
- 80% in Gozo (up to €960/year).
Start-up support: The government is continuing and expanding several initiatives: B-Start, Start-up Finance, Accelerate, Venture Capital.
Digitalization & AI adoption: €100 million investment to help businesses adopt: Artificial Intelligence, Internet of Things, Cybersecurity, Augmented/Virtual Reality, Blockchain, Robotics
Businesses investing in research and development or innovative projects can deduct 175% of eligible expenses from their taxable income.
Simplified due diligence via Central Data Repository.

03.

What the budget means for

Investors & Institutional Players

Strong fiscal fundamentals:
- Debt-to-GDP ratio at 47.1%, expected to fall further.
- Deficit projected to drop to 2.8% of GDP in 2026.
FDI attraction:
- Malta ranked highly in Greenfield FDI Index.
- 79% of investors find Malta attractive.
The government is implementing structural reforms to:
- Promote family offices as a niche financial service.
- Enhance asset management frameworks to attract high-net-worth individuals and institutional investors.
Fintech & crypto growth under MiCA regulation - Malta was one of the first EU countries to legislate on blockchain and digital assets.
Legal right to open bank accounts - A new legal framework is being introduced to:
- Guarantee the right for businesses to open bank accounts.
- Address long-standing issues faced by start-ups and SMEs in accessing banking services.

04.

What the budget means for

Expats Living in Malta

Digital Identity Wallet - A national digital identity wallet will be launched to simplify access to public and private services.
Nomad Visa programme contributed €132 million to the economy in 2024. It attracted remote workers and digital nomads from around the world.
New scheme for Maltese descendants abroad (ages 18–30) to work/study in Malta.
Improved healthcare access and expanded POYC pharmacy network.
Transport improvements: three new fast ferry routes from Marsaskala to Valletta, Sliema to Bugibba and Bugibba to Gozo.

05.

What the budget means for

Pensioners & Retirees

€10/week pension increase for 100,000 retirees.
Additional €3.50/week for 7,000 widows.
Annual supplement paid to pensioners aged 65+ will rise to €250 per person.
Tax exemption on pension income up to double the maximum rate.
€75–€525 grants for elderly living at home or in private care.
Service pensioners receiving a commuted pension will see an increase of €200, bringing the total to €3,866.
€50–€1,050 annual bonus for non-pensioners based on contributions.
€4,500 tax deduction for private elderly care expenses.
Home Helper subsidy increased to €10/hour.
Carer at Home grant increased to €9,000/year.

06.

What the budget means for

Employers, Educators & Workforce Planners

€100 million investment in digitalization and AI.
AI for All initiative: free courses, certification, and subscriptions.
National Talent Register to be managed by Jobsplus to match skills with jobs.
Remote working expansion and leave reforms (parental, neonatal, bereavement).

07.

What the budget means for

ESG Investors, Developers & Urban Planners

€300 million investment in second energy interconnector.
€85 million investment for a new organic waste processing plant.
€37 million investment to transform public green space at Sant’Antnin.
€20 million investment for a new urban park in Gozo.
€6 million investment for a jogging/cycling track in Ta’ Qali.
Sustainable Innovation Hub in Birżebbuġa Will host: Green tech start-ups, Sustainability-focused research, Community innovation labs.
Green mobility grants and feed-in tariffs for solar energy.
Construction reforms and incentives for sustainable buildings.

08.

What the budget means for

Legal, Tech & Compliance Professionals

Digital Identity Wallet and AI integration in public services.
€4 million agreement with Microsoft for AI in government.
Legal reforms - Family Court, Media Law, Compilation process.
New court buildings and digitization of justice services including: Remote adjudication systems, Digital case filing, Online access to judgments and records.
Support for compliance professionals in fintech and crypto sectors by introducing MiCA (Markets in Crypto-Assets) regulation.
Cybersecurity investment and training.