Malta’s 2025 Budget: New Investment Opportunities and Boosted Family Benefits

Malta's 2025 budget brings new support for businesses, tax cuts for workers, and expanded social benefits, marking a step toward economic growth and family support. 

With a start-up visa to attract talent and occupational pension schemes for public sector workers, Malta is encouraging investment in the workforce. Tax-free benefits on essentials and increased subsidies for families highlight a focus on wellbeing. Green initiatives also get attention, with reduced electric vehicle subsidies and more support for solar energy. 

Here’s a look at the highlights of the budget for 2025. 

Business & Fiscal Policies

• Cost-of-Living Adjustment (COLA) will be €5.24 per week in 2025.
• Tax cuts across income brackets, raising tax-free income levels.
• Weekly increase of €8 for pensioners, with extra benefits for those born before 1962.
• Minimum wage is set to increase by €8.24 per week.
• Workers born after 1976 must pay an extra year of National Insurance (NI) contributions to receive a full pension. Those who started working before age 23 are generally unaffected.

Income & Employment

• Launch of the start-up visa, a program to attract entrepreneurs and skilled workers.
• The government will introduce a voluntary occupational pension scheme, matching public sector worker contributions up to €100 per month, with tax benefits extended to both employees and employers.
• The Seed Investment Scheme has been relaunched to support start-ups and small businesses.
• Malta will launch a “Vision 2050” plan for long-term development, focusing on sustainability and quality.
  
  

Social & Family Welfare

• Children’s allowance has been increased by €250 per year for each child.
• The marriage grant has been raised to €1,000 per couple.
• IVF treatments will now grant 100 hours of paid leave per cycle, with 60 hours for the mother and 40 for the partner.
• A higher allowance is provided for caregivers of family members with disabilities, plus weekly increases in disability benefits.
• Foster parents will see their allowance increase to €120 per week, or €6,240 per year for each fostered child.

Healthcare & Community Support

• Essential items like sanitary products are now VAT-free, as are some medical items for women with cancer.
• Mental health services will expand to offer video consultations with professionals.
• A new Social Medical Help program will support families unable to work due to medical needs.
• Six months of free gym membership for those born between 2005 and 2007.
• Panic alarms will be given to people reporting domestic violence to alert authorities if needed.
• A volunteer database will help NGOs match skills with volunteers, with up to €500 in tax credits for companies donating to these organizations.
• For Gozo, investment includes a new Occupational Health and Safety office and a grant for scrapping old vehicles, though local leaders call for more capital projects.

Education & Innovation

• Higher tax credits for private schooling at different levels: €3,500 for kindergarten, €4,600 for primary, and €6,500 for secondary students.
• New "Digital Identity Wallet" app will provide a secure digital ID for citizens.
• €20 voucher for all primary to secondary students to use at the 2025 National Book Fair.

Property & Environment

• Tax exemptions and VAT refunds continue for restoring older properties.
• Solar panel and battery storage grants are extended.
• Electric vehicle subsidy is reduced to €8,000, with ongoing incentives for hybrids and converted vehicles.
• A new Food Safety Authority will ensure food security and crisis readiness.

Transport & Infrastructure

• Extended EV incentives for public transport.
• New park-and-ride systems and cycling paths are planned to ease traffic congestion.

Our multilingual professionals at DZ Advisory are glad to assist you in understanding the benefits of the 2025 budget for you and your family should you choose to relocate to Malta through Citizenship or Residency by Investment. 

If you would like to receive more information, please provide us with your contact details and one of our team members shall be in contact with you promptly.s currently preparing a completely new programme that aims to attract third-country nationals who are start-up investors wishing to permanently reside here, subject to achieving the required and legal criteria to successfully establish a fruitful business for Malta. This new permit should entice entrepreneurs to invest and register their start-ups in Malta, bringing along their new and innovative ideas which will help shape the future of the Maltese industries and economy.

The Agency is currently preparing a completely new programme that aims to attract third-country nationals who are start-up investors wishing to permanently reside here, subject to achieving the required and legal criteria to successfully establish a fruitful business for Malta. This new permit should entice entrepreneurs to invest and register their start-ups in Malta, bringing along their new and innovative ideas which will help shape the future of the Maltese industries and econo