Skip to content
Malta BudgetGuide

Policy direction

Use fiscal measures to accelerate a higher-productivity, higher-value economy

Use fiscal measures to accelerate a higher-productivity, higher-value economy 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

Explicit introduction-level fiscal policy direction is missing. Technology, skills and modernisation are means of raising value/productivity rather than simply adding workers. Do not invent an AI grant, labour cap, tax rate or implementation timetable. Source wording: Se ndaħħlu miżuri biex nibagħtu sinjali ċari biex taċċellera l-evoluzzjoni tal-ekonomija tagħna għal waħda ta’ produttività għolja u ta’ valur aħjar. / U fuq l-oħra rridu li l-operaturi ekonomiċi nidderiġuhom lejn attività li toħloq valur miżjud aqwa u b’anqas pressjonijiet fuq l-infrastruttura tagħna. / Ekonomija fejn in-negozji jinvestu aktar fit-teknoloġija, fid- diġital, fl-immodernizzar u fil-ħiliet u mhux l-ewwel għażla tkun li nħaddmu aktar nies. / U biex niksbu dan irridu nużaw ukoll l-għodod tal-politika fiskali biex nibagħtu sinjal ċar dwar liema attivitajiet irridu / ninkoraġġixxu, liema dipendenzi rridu nnaqqsu, u lejn liema direzzjoni rridu nimxu lejha bħala ekonomija.

Affects: Residents, Companies & SMEs, Economy.

Sources

  • Diskors tal-Budget 2027, Ministry for Finance (Malta), 2026-10-26. Printed p. 8 (PDF p. 12)
  • Diskors tal-Budget 2027, Ministry for Finance (Malta), 2026-10-26. Printed p. 9 (PDF p. 13)
  • Diskors tal-Budget 2027, Ministry for Finance (Malta), 2026-10-26. Printed p. 10 (PDF p. 14)
  • Diskors tal-Budget 2027, Ministry for Finance (Malta), 2026-10-26. Printed p. 11 (PDF p. 15)

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