Business · Companies & SMEs
A reduced rate on retained profit for small companies is announced, alongside wage and permit cost changes that affect employers.
A 25% tax rate on retained or reinvested profit is announced for qualifying companies with turnover not above €1 million, compared with 35% on distributed profit.
25% on retained profit
Proposed rules; implementation not confirmed.
Speech printed p. 34 · PDF p. 38
New rules require fuller disclosure of the total price in development deals involving the sale of air space.
Proposed rules; implementation not confirmed.
Speech printed p. 42 · PDF p. 46
For covered construction transactions the buying business, not the supplier, accounts for VAT.
Proposed rules; implementation not confirmed.
Speech printed p. 43 · PDF p. 47
Penalties of €100, €200, €400 and then €500 apply for successive failures to issue correct invoices or receipts within 24 months.
€100 / €200 / €400 / €500
Speech printed p. 44 · PDF p. 48
Guidelines will clarify VAT on ready-to-eat food sold by supermarkets and convenience shops.
Proposed rules; implementation not confirmed.
Speech printed p. 45 · PDF p. 49
Malta Enterprise will continue incentives for digitalisation, automation and higher-value investment, while attracting new niches.
Direction of policy; no individual entitlement implied.
Speech printed p. 55 · PDF p. 59
The regulator and MFSAC will continue developing the framework for family offices, crypto companies, fintech and aircraft leasing.
Direction of policy; no individual entitlement implied.
Speech printed p. 55 · PDF p. 59
Airline incentives will be reviewed to attract more visitors in shoulder and winter months and from higher-quality source markets.
Direction of policy; no individual entitlement implied.
Speech printed p. 56 · PDF p. 60
The speech announces renewal of existing schemes, including housing, home buying and restoration, NGOs, sport, electric vehicles and renewable energy.
Renewal announcement; scheme-specific terms need verification.
Speech printed p. 56 · PDF p. 60
The speech reports 208 completed substations, over 270 km of cables and completed distribution centres in Naxxar, Siġġiewi and Msida.
208 substations; 270+ km of cables; €9m Msida centre (historical)
Infrastructure / capacity—not a cash benefit.
Speech printed p. 58 · PDF p. 62
Enemalta has launched the process for adding two 33kV electricity cables under the sea between Malta and Gozo.
2 submarine cables, 33kV
Infrastructure / capacity—not a cash benefit.
Speech printed p. 58 · PDF p. 62
Around €75 million is announced for electricity-distribution investment in 2027.
Approximately €75 million in 2027
Infrastructure / capacity—not a cash benefit.
Speech printed p. 58 · PDF p. 62
The second interconnector with Sicily is expected to double Malta's interconnection capacity.
Infrastructure / capacity—not a cash benefit.
Speech printed p. 58 · PDF p. 62
Technical studies are under way for a third interconnector.
Infrastructure / capacity—not a cash benefit.
Speech printed p. 58 · PDF p. 62
Technical studies cover a new 132kV connection between Malta and Gozo.
132kV proposed connection
Infrastructure / capacity—not a cash benefit.
Speech printed p. 58 · PDF p. 62
Studies continue for a first offshore wind farm with envisaged capacity of 300 MW.
300 MW envisaged capacity
Infrastructure / capacity—not a cash benefit.
Speech printed p. 58 · PDF p. 62
The government plans further investment in large-scale batteries and more opportunities for domestic batteries.
Direction of policy; no individual entitlement implied.
Speech printed p. 59 · PDF p. 63
The Msida Creek project is among the major infrastructure projects continuing in 2027.
Infrastructure / capacity—not a cash benefit.
Speech printed p. 59 · PDF p. 63
Extensions at Pinto 4 and 5 and Lascaris are named among infrastructure projects continuing in 2027.
Infrastructure / capacity—not a cash benefit.
Speech printed p. 59 · PDF p. 63
Shore supply in the southern Grand Harbour and Lascaris is planned for completion by the end of 2028.
Planned completion by end 2028
Infrastructure / capacity—not a cash benefit.
Speech printed p. 59 · PDF p. 63
Work continues on the Birżebbuġa boat slipway and berm project.
Infrastructure / capacity—not a cash benefit.
Speech printed p. 59 · PDF p. 63
The government will continue cultural-heritage protection and allocate more resources to the cultural sector.
Direction of policy; no individual entitlement implied.
Speech printed p. 60 · PDF p. 64
Financial and technical assistance will continue for farmers, fishers, livestock producers and people involved in food supply.
Direction of policy; no individual entitlement implied.
Speech printed p. 60 · PDF p. 64
Government commits to maintaining stable energy and fuel prices through subsidies, with around €400 million of support described for 2027.
Approximately €400m of related 2027 support
Direction of policy; no individual entitlement implied.
Speech printed p. 5 · PDF p. 9
The speech reports a simulation of removing energy subsidies, not an announced policy or expected outcome.
Hypothetical scenario—not a prediction
Forecast or target—not a guaranteed outcome.
Speech printed p. 16 · PDF p. 20
The speech gives illustrative unsubsidised diesel and electricity costs; these are not individual benefit entitlements.
Illustrative comparison only
Forecast or target—not a guaranteed outcome.
Speech printed p. 15 · PDF p. 19
The speech commits to keeping the general-government deficit below 3% of GDP and reducing the debt burden over the legislature.
Deficit below 3% of GDP: stated policy
Direction of policy; no individual entitlement implied.
Speech printed p. 47 · PDF p. 51
The fiscal chapter refers to the Youth-Led Start-Up Support Scheme launched during the speech year.
Renewal announcement; scheme-specific terms need verification.
Speech printed p. 34 · PDF p. 38
No increase in the VAT rate is stated as a policy commitment, not a new individual cash benefit.
Direction of policy; no individual entitlement implied.
Speech printed p. 7 · PDF p. 11
No increase in social-security contributions is stated as a policy commitment, not a new individual cash benefit.
Direction of policy; no individual entitlement implied.
Speech printed p. 7 · PDF p. 11
No increase in income-tax rates is stated as a policy commitment, not a new individual cash benefit.
Direction of policy; no individual entitlement implied.
Speech printed p. 7 · PDF p. 11
Raise funds to strengthen infrastructure for increased economic activity is stated as a policy commitment, not a new individual cash benefit.
Direction of policy; no individual entitlement implied.
Speech printed p. 7 · PDF p. 11
Use fiscal measures to accelerate a higher-productivity, higher-value economy is stated as a policy commitment, not a new individual cash benefit.
Direction of policy; no individual entitlement implied.
Speech printed p. 8 · PDF p. 12
Visitors and foreign residents should contribute towards the costs they generate is stated as a policy commitment, not a new individual cash benefit.
Direction of policy; no individual entitlement implied.
Speech printed p. 8 · PDF p. 12
Continue making government more efficient, responsible and agile is stated as a policy commitment, not a new individual cash benefit.
Direction of policy; no individual entitlement implied.
Speech printed p. 4 · PDF p. 8
The 2027 cost of living adjustment is announced at €6.41 per week, up from €4.66 per week in 2026.
€6.41 per week
Speech printed p. 16 · PDF p. 20
The national minimum wage rises by €10.41 per week in 2027. This figure already includes the €6.41 COLA.
€10.41 per week (including COLA)
Speech printed p. 18 · PDF p. 22
The new non-EU work permit application fee rises from €600 to €800, and a new €400 annual infrastructure contribution applies to new applications and renewals, with an under-18 exemption.
€800 application; €400 annual contribution
Speech printed p. 29 · PDF p. 33
Malta Enterprise will continue incentives for digitalisation, automation and higher-value investment, while attracting new niches.
Direction of policy; no individual entitlement implied.
Speech printed p. 55 · PDF p. 59
Elite athletes representing Malta in European or world championships will receive ten paid sports-leave days, also covering accompanying technical and medical team members.
10 paid days
Speech printed p. 60 · PDF p. 64
Rules pending. Not a tax computation.
On €100,000 of profit that is retained and qualifies, a 25% headline rate would be €25,000, compared with €35,000 at 35%. Refund mechanisms, qualifying definitions and anti-abuse rules may change the real outcome substantially.
Independent editorial note: figures are taken from Budget announcements. Announcements are not law until enacted. Check the source library and official guidance before acting.