Malta prepares for Budget 2027 with tax relief and business proposals

Ahead of the Budget 2027 presentation on Monday, October 26, Prime Minister Robert Abela has announced that working parents in Malta will receive double the current tax benefits. The Prime Minister stated that these measures aim to support families facing rising living costs while maintaining economic stability. He also confirmed that existing energy and fuel subsidies will be extended for another year, with the government targeting a deficit below 3% and public debt below 50% of the economy.

In preparation for the budget, business organizations have submitted various proposals to enhance long-term competitiveness. The Malta Chamber of Commerce, Enterprise and Industry has proposed reducing the corporate tax rate from 35% to 25%, with potential further reductions to 20% for compliant businesses. Other requests include venture capital tax credits for start-ups, increased research and innovation tax deductions, and the establishment of a multi-year Transformation Fund to support digitalization, cybersecurity, and workforce development.

Additionally, the Malta Chamber of SMEs has suggested a taxpayer points system to manage compliance, while industry leaders have called for targeted tax credits to help small and medium-sized enterprises manage rising labor costs.