Malta Budget 2023

A summary with highlights of the key fiscal and economic points of the Malta Budget 2023

Malta Budget 2024

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Malta Budget key highlights

Welcome to the Malta Budget Highlights for 2023. This budget contains measures aimed at sustaining economic growth in a post pandemic environment against a volatile global economic and geopolitical backdrop. It also introduces various environmental and sustainability related measures.

COLA €9.90 and pensioners to receive an additional €2.60

Non-taxable pension income threshold to increase to €14,968

Mental health care beneficiaries to be credited with 2 years of Social Security Contributions

A €600m fund allocated to counteract rising energy and cereal prices

€10k grant for qualifying first time buyers

Income tax on royalty income for authors to decrease from 15% to 7.5%

Tax refunds of between €60 and €140 to be reissued

One-stop shop for start-ups to be launched in 2023 and incentives for digitisation projects

Extension of 1.5% reduced stamp duty rate on transfers of shares in family businesses

Implementation of masterplan to enhance the aviation sector

Extension of up to €12k grant for new electric vehicles

Increase to €300 on tax deduction to parents for children's sports, arts and cultural activities. €200 annual tax credit for parents of children with disability

Performance of the Economy

Following robust economic growth in 2021, Government is projecting GDP to increase by 6.0% and 3.5% in real terms in 2022 and 2023 respectively.  Against this backdrop of significant economic growth, the debt-to-GDP ratio is expected to amount to 57% of GDP in 2022, increasing to 59.1% next year, as Government substantially increases  its energy support measures. Meanwhile, the annual inflation rate for 2022 is anticipated at 5.7%, after which it is expected to decrease to 3.7%, with energy price inflation remaining contained. Finally, for 2022, unemployment is set to remain low, projected at 3.1%. 

Income & Other Taxes

The main income tax measures include a number of initiatives targeting pensioners, such as an adjustment to the income tax rates, to ensure that increased pensions continue to fall within the tax free bracket.  A reduction in income tax rates for authors and a tax credit for parents of children with disabilities will be introduced. There will also be an increase in the tax deduction for parents whose children attend certain extracurricular activities. Furthermore, another round of tax refunds, ranging between €60 and €140, will be paid to eligible individuals.

The MicroInvest scheme will be extended to social enterprises. 

The Minister also announced that the reduced stamp duty rate on certain transfers of family businesses and the intra-group transfer of capital allowances for certain companies will be extended further. Proposals will also be put forward for changes to the various residency programmes.

Social Measures

The Budget caters for a number of initiatives aimed at improving the overall well being and standard of living of people with different social needs.  

The cost of living adjustment for 2023 amounts to €9.90 per week and that for pensioners will amount to €12.50 per week.  

Certain measures increase or improve pension benefits, whereas others are targeted at providing assistance to the elderly, the vulnerable, and those suffering from certain health (including mental health) issues/ chronic conditions.

Other social measures include an increase in the paternity leave, assistance for those who wish to purchase their own property, investment in public bodies (such as the police force and the civil protection), increase in certain social benefits, grants, allowances and tax credits for parents of children with disabilities and an increase in the children's allowance.  The Minister also announced an increased Government investment in the health sector in general.

Other Measures

The Government is committed to eroding bureaucracy and creating a more business friendly environment. It will also make more space available for industry, help the start-up scene (including with financial intervention) and assist all the key economic sectors that are, or have the potential to become, important to the economy.

Discover other measures

Sustainability and the Environment

The Minister announced a number of incentive schemes for businesses aimed at supporting digitalisation, energy and water consumption savings, and reduction of waste and excess raw materials. 

Schemes incentivising the purchase of electric vehicles and other means of clean transport and scrappage of old vehicles, both for business and private use, installation of PV panels for residential houses and renovations of private sector buildings will be extended.

The Government is also committing to material environmental projects including the coordination of green urban reclamation projects and increased investment in green urban areas, treatment of greywater discarded by businesses alongside the Maltese coast and waste reduction and conversion of organic waste into energy and agricultural compost.

Explore sustainability measures

LinkedIn Live Malta Budget 2023 

Watch the Malta Budget 2023 key highlights discussion which was held on LinkedIn Live on Tuesday 25 October at 12.30pm. David Ferry, Bernard Attard and Ian Abela analysed the Malta Budget 2023. Apart from highlighting its key takeaways, our experts offered insights about what this Budget will mean for the coming year and for the Maltese economy.

What will the main socio-economic impacts that will affect Maltese society in the coming year be? How will these measures affect you and/or your business?

Watch this LinkedIn Live session

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In an effort to keep up our sustainability practices, we have eliminated the printable publication. Should you require a printable copy of the publication, please reach out to us through the links below.

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At the back, from left to right:
Mirko RapaNeville GattDavid Valenzia, David Ferry and  Steve Gingell

In front, from right to left:
Edward Attard, Bernard AttardFrancesca Fenech and Mark Lautier.

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Previous editions of Malta Budgets

Visit the 2022 Malta Budget page or request a copy of any older edition of the Malta Budgets, published in previous years.

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