Malta Budget 2026 live updates

Live updates have now concluded. Watch this space for our full review and expert commentary coming later tonight.

Servizz.gov will invest in additional centres, including new locations in Gozo, Birżebbuġa, and Marsaxlokk. Additionally, all Servizz.gov centres will be extending their hours and opening on Saturdays.

From next year, the Coeliac Bank Transfer System will replace vouchers with payments made directly to beneficiaries’ bank accounts for greater efficiency. Monthly support will also increase from €65 to €85.

Free Medical Aid (Pink Form) age threshold will be lowered from 75 to 65. Consequently, individuals aged 65 and over who receive Supplementary Assistance will automatically qualify for free prescription medicines under the Pink Form, without the need for a means test.

Stipends will be increased by 15%.

Enterprises, including new ventures, will receive a 60% tax credit on eligible investments (e.g., machinery, tools, software, electronic equipment, and cyber security) made within the next two years, claimable over four years to boost value added and productivity.

The eco-contribution levied on tourists will be raised from €0.50 to €1.50 per night.

The Micro Invest Scheme will be strengthened to accelerate digital transformation and talent retention.

• Eligibility will be expanded to include digital investments, with the tax credit ceiling raised to €65,000 (covering up to 65% of eligible expenditure). The 20% Gozo uplift will be maintained, and total aid for specified categories may reach €85,000.

• A new wage-support component will be introduced. For employees with at least four years of continuous service with the same employer, the Government will co-finance 65% of any wage increase for two years, capped at €780 per year. In Gozo, the co-financing rate will rise to 80%, capped at €960 per year.

Accelerated tax deduction over a period of two years for investment related to AI, digitalisation, investment that promotes modernisation, automation, and cybersecurity.

A 175% tax deduction will be available to businesses of all sizes for qualifying research and innovation expenditure (R&I), incentivising greater investment in R&I.

Extension of 1.5% reduced stamp duty rate on family business transfers together with other measures.

Introduction of a workplace mental health incentive, recognising that productivity is unsustainable without well-being.

Legal amendments will be enacted to provide young people aged 16–18 with a safe, regulated pathway to entrepreneurship, including a tailored framework that allows them to undertake commercial acts and operate bank accounts under age-appropriate structures.

The First-Time Buyers scheme will be enshrined in law, with eligibility criteria amended to apply exclusively to residential properties.

People who inherit a property that is already being used as their residence will now pay a reduced rate of 3.5% on the first €400,000, increased from €200,000.

Business Development Scheme to be extended.

Starting next year, self-employed parents will be eligible for parental leave under the same terms as employed individuals. Self-employed individuals will also be entitled to bereavement leave and miscarriage leave, in line with employed persons.

Effective January 2026, the subsidy rate under the Home Helper of Your Choice scheme will increase from €9 to €10 per hour. Additionally, the Carer at Home payment for elderly individuals employing a full-time carer will increase by €500 to €9,000 per year.

Parents who take a break from work to raise their children will now receive NI credits until each of the first three children reaches age 10, up from age 6. For families with more than three children, the coverage period extends by an additional year for each subsequent child.

Foreign adoption grant for the reimbursement of expenses to increase from a maximum of €10,000 to a maximum of €12,000. For local adoption, the reimbursement from €1,000 will increase to €2,000, of which €500 will be awarded as a grant.

In-Work Benefit increase of another €75 per child.

Birth and Adoption Bonus increase of another €500. For the first child this will increase to €1,000, €1,500 for the second child and €2,000 for the third child and beyond.

The income threshold for higher Children's Allowance rates will increase from €27,434 to €30,000. Additionally, the Children's Allowance rate for families earning less than €30,000 will increase by €250 per child.

An increase of €250 to €1,000 per year for each disabled child in the reimbursement for therapies provided to children up to 23 years of age.

Widowed parents raising children will get €10 more per week, with the allowance extended until the child turns 23 years of age. 

The Supplementary Allowance maximum rate will increase to €27.30 per week for couples and €14.40 for singles, with income thresholds raised to €20,000 (couples) and €14,000 (singles).

Carers' grant increased to €5,368.89 per year.

€10 per week increase in pensions for certain retirees, invalidity, widows, and old-age pensioners, with an additional €3.50 per week for certain widowed pensioners.

Maximum tax saving for parents with one child under the married computation will be of €725 in 2026, €1,450 in 2027, and €2,175 in 2028.

Maximum tax saving for each parent with one child under the parent computation will be of €570 in 2026, €1,150 in 2027, and €1,800 in 2028.

Maximum tax saving for parents with two children or more under the married computation will be of €2,025 in 2026, €4,050 in 2027, and €6,000 in 2028.

Maximum tax saving for each parent with two children or more under the parent computation will be of €1,625 in 2026, €3,250 in 2027, and €5,000 in 2028.

Tax brackets of the Parent Tax Rates are being adjusted – with an average €2,400 tax saving per parent spread over three years.

The economy is expected to grow at a rate of 4.1% in real terms.

Inflation is expected to stabilise at 2.2%.

The COLA increase for next year will be €4.66 per week.