Malta Budget 2026

Following the Malta’s 2026 budget presented on Monday 27 October by the Minister of Finance, Clyde Caruana, we are providing a summary of the principal business-related incentives, family measures, and transportation initiatives introduced. This overview is intended to assist you in evaluating the potential impact and opportunities for your business and family.

This year’s budget speech outlined a number of measures aimed at supporting business development, with automation, digitalisation, and AI identified as priority areas for investment.

These were accompanied by announcements of tax credits and investment aid, though the full details are still pending. As with any incentive, the effectiveness of these measures will depend on how they are implemented. Businesses considering such investments should begin assessing their needs and planning accordingly. 

On the social side, the government introduced changes to tax brackets for families with children, to be phased in over three years. This measure appears to be part of a broader response to Malta’s declining birth rate, which remains the lowest in the EU and below the population replacement level. Traffic congestion was again acknowledged as a major concern. While some existing measures were enhanced, there was no announcement of a mass public transport system, despite previous public comments suggesting it was under consideration.

For a more detailed discussion on the potential implications of these measures for your operations, we invite you to get in touch.