Malta | Government Budget 2018

Malta | Government Budget 2018

The Maltese Government’s Budget 2018 – 9th October 2017 (evening sitting 6:00PM)

Click image for budget speech 2018

Relevant government budget 2018 measures:

  • Cost of Living Allowance (COLA) – increase of €1.75 per week commencing January 2018 – view 2018 COLA
  • Bonus and weekly allowance to remain fixed as in 2017 – view bonuses for March, June, September and December
  • Malta resident status tax rates for 2018 – view 2018 resident status tax rates
  • Pensioners receiving contributory and noncontributory pensions to receive €2 per week increase in their pensions
  • Service pension shall increase by €200 and shall be deducted from the social security pension
  • Working pensioners aged 62 – 65 who pay their social security contributions will have their pensions revised at age 65
  • Pensioners who have not yet reached the age of 65 and work part-time may opt to pay a social security contribution of 15% on their income rather than the minimum contribution
  • Pensioners aged 75 years and over shall retain the annual €300 grant on the condition that they live in their own home
  • Tax ceiling for pensioners will increase to €13,200
  • All persons earning less than €60,000 per annum will receive a tax refund of between €40 and €68
  • Employee vacation leave in 2018 is to increase by from 192 hours to 200 hours per annum, in compensation of public holidays falling on an employee’s day of rest
  • First-time buyers scheme on residential property to be retained in 2018
  • Second-time buyers scheme on the purchase of the second residential property (on condition that the first residential property is sold) shall be introduced; new owners to receive a refund on the transfer duty paid up to a maximum of €3,000 (€5,000 in case of persons with disability)
  • Free school transport to be introduced for children attending government, church and independent schools for 2018/2019 after study is undertaken
  • Children of ages 16 to 20 will get a free 1 year bus pass
  • MATSEC and SEC exam fees will be halved in 2018 and removed altogether in 2019
  • Fiscal incentives shall be offered to persons who have read a Masters or a Ph.D. as of the academic year 2017/2018, yet this scheme shall not be available for persons who have already benefitted from study related schemes
  • Ex-gratia payments shall be paid to persons who registered their motor vehicles in 2007
  • VAT exempt thresholds to increase from €14,000 to €20,000
  • Fines on tax evasion shall be increased
  • In-Work benefit schemes to be revised upwards
  • Employees working in the Community Worker Scheme shall receive an extra €200 per month
  • Carer allowance shall increase by €8.15 per week
  • Child adoption reimbursement shall reach a maximum of €10,000
  • Orphans allowance shall be paid to all children aged 21 and under irrespective of whether they are in gainful employment or not
  • Foster care allowance to increase from €70 to €100 per week
  • Persons receiving a contributory pension on the demise of their spouse and who still have a dependent child under the age of 23 shall start receiving sickness benefits
  • Alimony received by the spouse and/or children shall not be considered as income for calculations based on means testing
  • Drug and alcohol abusers shall receive an allowance of €40 per week (an increase of €10 per week)
  • In-Work maximum benefit for one working parent with dependent children below the age of 23 earning between €6,600 to €16,500 in 2018 shall be from €450 to €75 per child (2017 – €350 to €52)
  • Private property owners shall be offered a maximum of €25,000 to rehabilitate unused properties on the condition that the property is rented to the Housing Authority for a period of 10 years for social housing purposes
  • Special incentives available to persons in social housing who to move to a care home and who give up their housing accomodation
  • Government shall be issuing a White Paper on affordable housing which will look at regulating the rent legislation including facilitation of eviction procedures and a Deposit Retention Scheme
  • The refund scheme on the VAT paid on the purchase price of a bicycle and electric bicycle shall remain in force
  • Cash refunds shall be granted on the purchase of motorcycles, scooters and electric bicycles up to a maximum of €400
  • Electric bicycles shall be exempted from VAT
  • Rental of bicycles shall attract VAT at 7% rather than the current 18%
  • Electric and hybrid vehicles shall be exempt from road licence for a period of 5 years (certain conditions apply) up to a maximum of €200,000 for businesses
  • Purchase of wheelchair accessible taxis shall benefit from a maximum grant of €10,000
  • MicroInvest tax credit scheme to be increased from €30,000 to €50,000 for businesses based in Malta; tax credit scheme of up to €70,000 for businesses based in Gozo and businesses whose owners are women
  • The MicroInvest tax credit scheme shall be available to businesses with more than 50 employees
  • Gozitan businesses employing persons under contract for a minimum of 3 years shall be offered a grant of 30% of the average pay, up to a maximum of €6,000
  • Offsetting of amounts payable and amounts receivable between businesses and government
  • Online submissions of FSS forms shall be extended to businesses employing 10 employees and over
  • No increase in excise duty on cigarettes, tobacco and alcohol


  Government Budget document 2018
  Government Pre-budget document 2018
  Draft Financial Estimates 2018
  Economic Survey 2017

  Tax Rebate on Pensions explained
  Relevant Government budget measures 2017
  Relevant Government Budget 2017 measures affecting pensioners
  Relevant Government Budget 2017 measures affecting 1st time buyers


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