Budget Highlights
Increase in minimum wage every year for the next 4 years
Pensions increased by €15 per week (inclusive of COLA)
Delayed adoption of the Pillar 2 Directive
Extension of various national funding schemes
Establishment of a Climate Action Authority to achieve climate neutrality by the year 2050
Social Measures
COLA
- COLA for 2024 will be of €12.81 per week, amounting to €666.12 per year.
- The additional COLA supplement for vulnerable households is to be extended. This benefit will range between €100 to €1,500 per year, depending on the household’s income.
Education
- Low-income families will receive additional help once their children reach 16 years of age and are no longer eligible for a children’s allowance – such families will be given a €500 yearly payment for three years, provided the children live at home and further their studies in post-secondary school.
- Student stipends will increase by €64 in 2024. Furthermore, students enrolled in certain courses will see a further increase in their stipends.
Other Social Measures
- Children’s Allowance to increase by €250 per child per annum.
- Senior citizens who choose to live at home or who pay for private care homes will receive €300 a year (increased to €450 if over 80 years old).
- €1,000 increase in the Carer at Home Scheme, bringing the benefit to €8,000 per year.
- Unemployment benefits are to be adjusted so that beneficiaries will receive
- 60% of their previous salary for the first 6 weeks,
- 55% for the subsequent 10 weeks,
- 50% for the final 10 weeks,
- The unemployment benefit will be capped at 175% of the minimum wage.
- The Private Rent Housing Benefit Scheme will increase as follows,
- From € 3,600 to € 4,200 for a single person,
- From €4,800 to €5,400 for a family with 1 child,
- From €5,000 to €6,000 for a family with 2+ children.
- The minimum wage will rise by €12 – €18 per week (exclusive of COLA) between 2024 and 2027.
- Outsourcing and temping agencies will be regulated with a license being required to import non-EU workers.
Fiscal Incentives
Fiscal Incentives
- Malta will defer the implementation of the Pillar 2 Directive and therefore the minimum tax of 15% applicable for Multinational Groups will not be introduced in 2024.
- The current full imputation system will remain.
- Malta will strive to continue offering incentives and tax credits in conformity with the EU and OECD to maintain its competitiveness.
- Tax credit of up to €500 on donations to qualifying voluntary organizations.
- The ongoing reduced stamp duty rate of 1.5% on family business donations from parents to their heirs will be extended for an additional year.
- Tax refund cheques will continue to be received, ranging between €60 and €140.
- Income derived from sporting activities will continue to be taxed at a reduced rate of 7.5%.
- The reduced VAT rate of 7% on sporting activities will be retained.
Pensions
Pensions
- Pensions to increase by €15 a week, equivalent to €780 per year (inclusive of COLA).
- Pensions are entirely exempted from tax.
- 60% of working income derived by pensioners will be untaxed (previously 40%).
- The mechanism previously applied to those born after 1962 will now also be applied to those born before too. This means that such individuals will receive increases based on rises in salaries, not just on the rising rate of cost of living.
- Pensioners born before 1962, whose current salaries are higher than their maximum pension, will receive a pension top-up.
- Pensioners that started receiving a pension from 2009 onwards, will receive an additional benefit of up to a maximum of €1 per week.
- Those who are not eligible for a pension will receive a bonus of €500 (increased from €450) for those with up to 4 years of contributions and €600 for those with up to 9 years of contributions.
- Pensions of widows/widowers under 61 years of age will not be taxed.
- From 2024, those who postpone their retirement,
- By 1 year will receive a pension top-up of 6.5% (1.5% increase),
- By 2 years will receive a top-up of 13.5% (3% increase),
- By 3 years will receive an additional 21% (4.5% increase),
- By 4 years will receive a further 29% (6% increase).
Environmental
Environmental
- Establishment of a Climate Action Authority to achieve climate neutrality by the year 2050.
- Extension of energy saving schemes – installing PV panels, heat pump water heaters, solar water heaters and home water filtering systems.
- Free energy audits to continue for SMEs.
- Extension of current ESG grant for SMEs.
- Charging points around Malta to increase from 372 to 1,200.
- Extension of schemes on the investment in new electric vehicles with the scrappage of old vehicles.
- Financial incentives to buy e-scooters.
Immovable Property
Immovable Property
- Reduced stamp duty rate on Gozo properties shall not be extended.
- The First-Time Buyer Scheme, whereby first-time buyers receive a grant of € 10,000 over a 10-year period will be retained.
- First-Time Buyers of vacant properties or properties in UCA will continue to receive a grant of €15,000 if the property is situated in Malta, whilst buyers of such properties in Gozo will receive €40,000 (increase of €10,000).
- Reduced stamp duty rates for first-time buyers and second-time property buyers will be extended for another year.
- The sale and purchase of properties situated in UCAs will remain tax-free.
- Tax exemption on the sale and purchase of property on the first €200,000 of the price of the property for owners who fall under certain Housing Authority Schemes.
Start-ups & Businesses
Start-ups & Businesses
- Discussions are currently in progress with local banks to facilitate the opening of bank accounts.
- Introduction of the first “Venture Capital Fund” aimed at giving certain startups access to finance.
- The Government vouched to reduce some obligations for small companies submitting audited financial statements for the purpose of tax returns.
- The “Seed Investment Scheme”, an incentive which offers tax credits to Maltese companies which would have invested in start-ups, will be extended for another year.
- The EU Startup Summit will be held in Malta from 2024 till 2026.
- A number of schemes, including the iStartup Finance scheme, iSkills Development scheme, Rent Subsidy Scheme, Innovate Scheme, Smart & Sustainable Scheme, Get Qualified Scheme and the Investment Aid for Energy Efficiency Projects will be extended for another year.
- Further cash grants from EU-funded schemes under the Business Enhance and Invest EU will be provided.
Malta Budget 2024 – Post Budget Discussion
- Date: Wednesday, 1st November 2023
- Time: 11:00 AM
- Format: Free online webinar
- Speakers: Mark Wirth, Markita Falzon, Kris Bartolo, Charles Vella