Every October, the Maltese government presents its budget for the following year. The 2026 budget — presented in October 2025 — introduced a set of changes that matter for both incoming residents and business owners.
Here is what changed and what it means in practice.
New Tax Bands for Parents
From 1 January 2026, resident parents of children under 18 (or under 23 if in full-time education) benefit from new, more advantageous tax bands — the “parent” and “married with children” rates.
This is meaningful for families relocating to Malta. If you have children and are establishing tax residence in Malta, your marginal income tax rate on Maltese-source income is lower than under the standard single or married rates. The specific threshold structure depends on the number of children and their ages.
What this means for you: If you are a British, Irish, or Australian family with children considering Malta, the 2026 tax bands make the numbers slightly better than they were before. For most HNWIs whose primary income is foreign-sourced and taxed under non-dom rules, this is not the dominant factor — but it matters for any Maltese-source income (employment income, local business income, rental income from Maltese property).
The First-Time Buyer Scheme — Made Permanent
The first-time buyer stamp duty exemption has been made permanent in the 2026 Budget. The exemption covers duty on the first €200,000 of the purchase price — at a 5% rate, that is €10,000 in savings.
For expats buying their first Maltese property, this is a meaningful concession. The conditions: the property must be used as your primary residence, and you must not have previously owned property in Malta.
Micro Invest Scheme — Higher Caps
For business owners, the Micro Invest Scheme — which provides tax credits against the costs of investment, employment, and business development — has been increased:
- Malta-based businesses: up to €65,000 in tax credits (previously €50,000)
- Gozo-based businesses: up to €85,000 (previously €70,000)
This is relevant for founders setting up genuine operating businesses in Malta. If you are establishing an iGaming company, a fintech, a professional services firm, or any other trading entity in Malta with real employees and real expenditure, the Micro Invest Scheme can materially reduce your effective tax burden.
New Investment Tax Credit
A new investment tax credit was introduced offering 60% of qualifying capital expenditure, claimed over four years. Combined with the Micro Invest Scheme, this represents a serious stack of reliefs for businesses investing in Malta.
Accelerated depreciation — two-year write-off for qualifying investments in digitalisation, automation, and cybersecurity — was also introduced. For tech-driven businesses, this is significant.
Reduced Duty on Inherited Property
The stamp duty rate on inherited property was reduced to 3.5% on the first €400,000 (previously the reduced rate applied only to the first €200,000). This is a family estate planning point — less directly relevant for incoming foreign residents, but worth knowing if you are purchasing property in Malta and thinking about how it passes to your children.
The Pension Rebate Increase
Tax rebates on pension income were increased for 2026. This is relevant for Malta Retirement Programme participants and any residents drawing pension income in Malta. The specifics depend on whether you are taxed at single, parent, or married rates.
What It All Adds Up To
The 2026 Budget is not revolutionary. It does not change the fundamental structure of Malta’s tax system. What it does is confirm that Malta is continuing to make itself attractive — to families, to businesses, to investors — through incremental improvements to an already competitive framework.
The direction of travel is clear. Malta is not raising taxes on incoming wealth. It is lowering friction, increasing investment incentives, and making the family-residency proposition more competitive.
For anyone sitting on the fence about Malta, the 2026 Budget is a mild nudge in the right direction.
Full breakdown of Malta’s tax programmes here.
[Book a consultation](/consultation) to understand how the 2026 changes affect your specific situation. End of Batch 01 — Articles 1–10 Next batch (Articles 11–20) covers: Malta Holding Company, Gozo Deep-Dive, Exit Taxes (UK/Ireland/Australia), Malta Healthcare, Setting Up a Malta Ltd, Christmas/Catholic Culture, GRP Deep-Dive, MRP for Retirees, New Year Moving Checklist, Malta Crypto Tax.
