Budget 2026

Main Highlights and Key Measures

The 2026 Budget introduces a range of fiscal, social, and legal reforms designed to sustain economic growth and improve quality of life. From tax relief for families to reforms in employment, justice, and land management, this year’s measures have significant implications across multiple areas of law. Below is a summary of the key legal and regulatory highlights by sector:

Employment Law

The budget introduces several key employment measures aimed at supporting both employers and employees. Employers will receive assistance to offset the impact of wage increases and the increase in COLA, ensuring business stability whilst maintaining fair wages.

The government will finance 65% of the increase in salaries for employees who have been with the same employer for more than 4 years, up to €780 per year in Malta. In Gozo, the assistance will rise to 80% of the increase, capped at €980 annually to further support long-term employment. In the meantime, the Cost of Living Adjustment (COLA) for 2026 has been set at €4.66 per week.

The OHSA will extend its training programmes to help entities and SME’s strengthen their compliance with workplace safety standards. The government will also establish the Malta National Talent Register to map workforce skills and improve labour marketing.

Additionally, new neonatal care leave will be introduced for parents whose newborns require intensive medical care which will be fully subsidised by the Government.

Self-employed individuals will also become eligible for Parental Leave, Bereavement Leave, and Miscarriage Leave, aligning their rights with those of employed persons.

There is also a continued focus on remote working initiatives and leave donation schemes within the public service to support work-life balance

It is important for all employers and companies to take note of all of these measures, which have been announced and which are going to be further discussed at a national level, to ensure that their current practices are in line with what has been announced during the Malta Budget and to reflect the necessary changes in their Company policies, if necessary.

Immigration Law

The National Labour Migration Policy will continue guiding Malta’s management of foreign employment through structured and lawful recruitment:

The government will implement stricter licensing and compliance mechanisms for recruitment agencies and will Expand Jobsplus programmes for upskilling and integration of migrant workers, particularly under the Youth Guarantee scheme.

Micro invest

The MicroInvest scheme remains a central tool for supporting SMEs and start-ups, offering tax credits for investment in Business digitalisation and innovation, Green transition projects and Female entrepreneurship and self-employment. These incentives continue to promote business formalisation, competitiveness, and sustainable growth in Malta’s micro-enterprise sector.

Research and Innovation

The Budget reinforces Malta’s strategy to foster research-driven economic growth by increasing investment in innovation and technology projects under the EU Recovery and Resilience Facility. It also focuses on developing stronger public-private-academic partnerships to accelerate research outcomes, alongside continued support for digital transformation across the justice, education, and health sectors.

Family Law

The Malta Budget seeks to support families through a wide range of social, financial, and legal measures. Most notably, the 2026 Budget introduced a new married and parent income tax brackets for families with one or more children, over a three year period.

Apart from a continuation of free school transport and free childcare, the Malta Budget also announced an increase of inwork benefits and children’s allowance for low income families.

Parents adopting abroad will now receive up to €12,000 in reimbursements, while local adoptions will be supported by a grant of €2,000.

A new measure will also assist victims of domestic violence requiring temporary accommodation during separation proceedings. These initiatives, coupled with improved parental leave entitlements and the expansion of social housing schemes, aim to promote family well-being, stability, and equality in Malta.

Property and Succession Law

The Malta Budget introduces significant reforms in property and succession law to enhance fairness and accessibility in home ownership. Individuals inheriting a property that already serves as their primary residence will now benefit from a reduced stamp duty rate of 3.5% on the first €400,000, an increase from the previous figure of €200,000.

Moreover, the First-Time Buyers Scheme will continue, supporting new homeowners through reduced stamp duty and financial incentives, while separated individuals seeking to purchase a new home will be eligible for the Equity Sharing Scheme, enabling them to co-invest with the Government to secure property ownership.

The Government will implement a ten-year land registration strategy to modernise property records and address issues related to expired emphyteusis (ċnus) and long-term leases. These initiatives aim to promote equitable access to housing, strengthen legal certainty, and ensure that families and individuals can achieve secure home ownership within a transparent property framework.