Malta’s Budget 2027 was presented in Parliament by the Minister for Finance, Mr. Clyde Caruana, on 26 October 2026. It is the first budget of the new legislature.
Income tax rates, VAT rate and social security contribution rates are unchanged, as is the retirement age. The Budget introduces several measures of direct relevance to individuals and businesses, including:
- A 25% tax rate, instead of 35%, on retained or reinvested profits of companies with a turnover of up to €1 million
- The second phase of the family tax computations for 2027 and 2028
- A tax-free Super Bonus of up to €1,000, payable in the first quarter of 2027
- A €10 weekly increase for all pensioners, and a higher tax-free threshold on pension income
- A new VAT mechanism in the construction sector, and administrative penalties for VAT invoice and fiscal receipt breaches
- Higher eco-contribution rates, work permit fees and driving licence rules affecting visitors and third-country nationals
Our Budget 2027 key highlights document sets out these and other measures in more detail, including the full family tax tables, the economic and fiscal outlook, and the changes to pensions and social benefits.
Download the Malta Budget 2027 key highlights document below:
Contact us to discuss how Budget 2027 may affect you or your business.
