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Malta BudgetGuide

Policy direction

No increase in income-tax rates

No increase in income-tax rates is stated as a policy commitment, not a new individual cash benefit.

Budget 2027Announced

Amount

Not specified

Previous

No direct comparator

Effective from

Awaiting guidance

What it means

Broad rate assurance is absent as a standalone commitment; family tax reductions are already covered. Can be combined with the VAT and social-security guarantees into one policy-direction record. Source wording: Kif diġà wegħidna fil-ġimgħat li għaddew, mhux se nżidu r-rati tat-taxxa fuq id-dħul. Anzi, se nkomplu fuq il-programm li beda s-sena l-oħra ta’ tnaqqis fit-taxxa. It does not establish unpublished standard-rate tables for 2027/2028; those calculations remain blocked.

Affects: Residents, Companies & SMEs, Economy.

Sources

  • Diskors tal-Budget 2027, Ministry for Finance (Malta), 2026-10-26. Printed p. 7 (PDF p. 11)

Related measures

Budget 2027Rules pendingBudget measure

Additional COLA support payments 2027

The additional COLA mechanism runs again, paying €200 to €1,500 a year depending on disposable income and household size. Over 100,000 households are expected to benefit.

€200 to €1,500 per year

Speech printed p. 22 · PDF p. 26

Budget 2027AnnouncedBudget measure

Free public transport eligibility 2027

From 2027 free public transport is restricted to Maltese and Gozitan residents, resident EU nationals and long-term residents.

Speech printed p. 30 · PDF p. 34

Budget 2027Rules pendingProposed reform

Small company 25% tax on retained profit

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