Economic Highlights

  • The Maltese economy has grown by 4.7% in the first six months of 2019 (three times more than the EU average)
  • The size of the economy doubled to €14billion in 7years. A fiscal surplus of 1.4% is forecasted for
  • Inflation is expected to be at 1.6 per cent, imports should most likely rise by 2 per cent and
    employment should improve by 4.1 per cent
  • Employment levels have reached 230,000 persons in employment
  • 7 million tourists estimated to have visited Malta during 2019
  • COLA of €3.49 per week

Personal Tax & Incentives

  • No new taxes were introduced
  • Reduced rates of tax shall apply to overtime pay, at a rate of 15 percent for the first 100 hours (subject to a basic salary of up to €20,000 and not in a management position)
  • Further increase in pensions with corresponding adjustments on tax exemptions applicable to pensions (Tax bands will be adjusted to ensure pensioners will not be subject to income tax)
  • Once again a tax refund will be given to all workers
  • Pension cheques will rise by €3.51 a week next year over-and-above the €3.49 COLA increase. That means a total increase of €7 a week
  • Extension of the €300 grant scheme to all persons of 75 years and over and an additional €50 grant to persons over 80 years of age living in their house for the next year

Business Tax & Incentives

  • No new taxes were introduced
  • Extension of the Micro-Invest Scheme, Business Start and Start Up Finance Schemes for a further year
  • Promotion for the issue of Green Bonds to be listed on the Malta Stock Exchange promoting investments in sustainability projects
  • Public Private Partnerships are being set up between Malta Industrial Parks and the Private Sector to accommodate small businesses in regional clusters
  • The Agricultural and Fisheries sectors will qualify under the innovative Aid Scheme managed by Malta Enterprise

Indirect Taxes

  • Provision of education to be VAT exempt

Stamp Duty

  • Stamp duty on transfer of business reduced to 1.5%
  • Existing schemes such as the first-time buyers scheme, second-time buyers scheme, purchase of vacant property in UCAs and purchase of property in Gozo to be extended, with the first-time buyers scheme exempting the first €175,000 from stamp duty

General Social & Environmental Initiatives

  • An additional day of leave entitlement for 2020
  • One-time bonus of €300 for every child born or adopted as from January 2020
  • Free tal-Linja Card to persons of 75+
  • Persons under the age of 40 eligible for a home loan may benefit from an interest-free loan of up to €17,500, which shall be repaid over a 15 year period
  • New projects for social housing announced
  • A national strategy aimed at becoming carbon-neutral by 2050 shall be present next year
  • Single use plastic products to be prohibited from 1 January 2021
  • Scrappage scheme extended for another year
  • Free school transport to students attending public schools
  • Youths to be given a grant of up to €850 to study a foreign language abroad
  • More investment expected in Artificial Intelligence and Internet of Things
  • More attention has been given to greener transport. In the years to come every fuel station in Malta and Gozo will need to provide gas and will need to be fitted with charging points for vehicles running on alternative energy
  • A maximum of €10,000 limit on cash transactions has been adopted when buying high-value items


For more information, on how the Malta Budget 2020 will be affecting you and your business, get in in touch with us today on