Malta: Tax measures in 2026 budget

The 2026 budget introduces tax-related proposals aimed at supporting families, businesses, and economic growth. Key tax provisions include:

• Individual (personal) tax
  • Reduction in tax via introduction of new “parent” and “married” tax bands for families with children under 18 years old, or under 23 if in full-time education
  • Permanent extension of the first-time buyer scheme, including exemptions on duty for residential property purchases
  • Reduced duty rate of 3.5% on the first €400,000 of inherited property (previously €200,000)
• Business tax
  • Increase in maximum Micro Invest Scheme tax credits to €65,000 for Malta-based businesses and €85,000 for Gozo-based businesses
  • Introduction of a new investment tax credit offering 60% of qualifying capital expenditure, claimed over four years
  • Accelerated tax depreciation over two years for qualifying investments in digitalization, automation, and cybersecurity
  • 175% tax deduction for eligible research and development (R&D) expenditures
  • Extension of reduced duty rate of 1.5% on intra-family transfers of businesses
• Indirect tax
  • Eco-contribution increased from €0.50 to €1.50 per night to fund tourism infrastructure and environmental improvements
  • Development of measures to contribute to a reliable indirect tax framework for industries such as gaming

Read an October 2025 report prepared by the KPMG member firm in Malta