BUSINESSES

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• Legislation is being planned to enhance Malta’s attractiveness in financial services, focusing on family offices, aircraft leasing, fintech, and AI. By 2025, legislation concerning Limited Partnerships will be introduced to promote these new areas in the country.

• Creative Malta will get an increase in funding to €2 million, aimed at supporting local film producers and promoting the Maltese film industry.

• There will be a centralised database of volunteers that will allow NGOs to be matched to people with the skills they need. Companies will get a tax credit of up to €500 for any donations they make to voluntary organisations.

• Incubator to help startups expand their operations to be set up in Ħal Far.

• Development on the SME park in Hal Far to continue, aimed at moving panel beating, spraying and carpentry services away from residential areas.

• The government is preparing for a Digital Identity Wallet, which will enable citizens and businesses to share their digital identity securely and efficiently via a smartphone app.

• Reduced excise for low-alcohol beer and wine produced in Malta.

• Extension of reduced stamp duty rate of 1.5% for family business transferred to next generation.

 

 

EMPLOYMENT/PERSONAL TAX

• Income tax rates slashed for workers leading to a tax saving ranging from €345 to €675 per worker.  Low-income workers will no longer be taxed.  Revised tax rates are:

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• Cost of living allowance for 2025 shall be of €5.24 per week. The increase will be given to all employees from 1st January 2025.

• An additional COLA supplement varying from €100 to €1,500 to be given based on the household income.

• Pensioners who continue to work will have 80% of their working income untaxed.

• NI contributions for people born in and after 1976 to increase by a year to 42 years to qualify for a full pension.

• In-work benefit to increase by €50 per child under 23 years old.

• Minimum wage as from 1st January 2025 would be € 221.78 per week.

• Upcoming amendments to the Wage Regulation Orders (WRO) will ensure legal uniformity across sectors and address anomalies related to leave and overtime payments to promote fair working conditions.​​

 

PROPERTY RELATED MEASURES

• Schemes for first, second-time buyers will be extended. 

• Fiscal incentives to restore old properties to be renewed, although the schemes will be subject to legal changes to clamp down abuse.

• OHSA will establish a centre in Gozo for immediate service and create an official register of health and safety experts based on qualifications and experience. 

• The BCA plans to expand its services, including free legal and expert assistance for affected parties, and initiatives like the Irrinova Darek scheme to help low- to middle-income families improve energy efficiency in their homes.

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FAMILY/SOCIAL MEASURES

• Pensioners will be given a COLA allowance of €8 weekly. 

• Parents shall be given a grant of €500 when having a baby or adopting. €1,000 in case of having the second and €1,500 for the third and every subsequent child.

• Carer at home allowance to rise to €8,500 per year.

• Children allowance will increase by €250 per child.

• The standard disability benefit to increase by €5 a week.

• Prospective parents undergoing IVF will get 100 hours of paid leave for each IVF cycle.   The mother will be given 60 hours and the other parent is entitled to 40 hours.

• The weekly allowance to foster parents will increase by €10 per week, i.e. €6,240 annually for each fostered child.

• Those born between 2005 and 2007 will get a free 6 month gym membership.

• Women’s sanitary products and products used by female cancer patients are to become VAT-free.

• Government to launch a voluntary occupational pensions scheme and will match contributions made by public sector workers.  The government will enroll all its workers in a pension scheme.  The government is also encouraging private sector workers to join.  Tax incentives equivalent to 25% of the contributions up to a maximum of €750 will be available for both employers and employees.

• Parents with children in private kindergartens will get a tax credit of €3,500, those in primary school will get a credit of €4,600 and those in secondary school €6,500.

• Bonus for those that don’t have enough contributions to get a pension.    €1,000 for those who paid up to 9 years contributions.  The bonus will be proportionately reduced for those with fewer NI payments.

• Couples getting married will receive a grant of €500 per partner, i.e. €1,000 per couple.

• Anyone filling domestic violence report will be given a panic alarm button, to alert law enforcement when pressed.