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Malta Budget 2019

Download our Malta Budget 2019 Report

The following were the main points:

Surplus

  • #Malta registers highest surplus in the #EU: In 2017, Malta registered a surplus of EUR 392.7 million, equivalent to 3.5% of GDP
  • Decrease in poverty in Malta – from 20% in 2012 to 8% in 2017  
  • In 2017, Malta 's economy grew by 6.7% in real terms, while in the first six months of 2018 a 5.4% growth was registered  
  • 1.3% surplus is expected in 2019, with national debt falling to 43% 

 

COLA Increase, Tax Refunds and further benefits for workers

  • Cost of living (COLA) will increase to €2.33 a week  
  • Students will get a pro-rata increase in their stipend.  Furthermore, in terms of an agreement with employers, those workers who have been on minimum wage for more than a year will get an additional €3 weekly.
  • Workers will be given a second public holiday falling on a weekend
  • The government will next year give tax refunds of between €40 and €68, with those with the lowest income getting the highest amounts
  • The measure will cost €11.5 million and over 200,000 workers will be eligible  

 

Increase in Children Allowances and Pensions

  • Increase in children’s allowance. This will apply to families with a gross income of €20,000 who will benefit from an increase of €96 per child, benefitting 24,600 children
  • Parents who send their children to independent schools will be able to claim an additional €300 in tax rebates per child.
  • Pensions to increase for the 4th consecutive year - pensioners will get a €2.17 increase, over and above COLA 
  • A total of 92,000 pensioners will get a €4.50/week pension increase. All income from pensions under €13,000 will not be taxed
  • Persons over 75 years of age still living at home to continue to receive grant of EUR300 per year
  • Government is giving public sector workers eligible to retire before 65 to be given the opportunity to postpone their retirement and benefit from increased pension allowances, as is already the case in the private sector.

 

Property Market

  • First time buyers will keep being exempted from stamp duty on first €150,000
  • The rent subsidy will be raised to €3,000 for single persons, from €1,600, and up to €5,000 for a family with two children, subject to a number of conditions. Incentives will also be announced for landlords who rent out their properties on long lets below market price. They will receive a substantial discount on capital gains tax due when the property is eventually sold after the rent expires
  • Equity Sharing scheme introduced for persons over the age of 40 years purchasing property

 

Infrastructure

  • More investment expected in Malta’s roads - with €100 million to be invested in the coming year  
  • The government will be extending a scheme for free public transport to 14 and 15-year-olds, as well as those over the age of 20 who are full-time students
  • VAT refund of up to €400 on bicycles, electric bicycles, motorcycles and cycle racks 

Tax Avoidance Measures

  • Tax Avoidance Measures: (1) Cooperation with other countries, (2) Enhancement of our regulatory system (3) Increase in Transparency and accountability

 

Further Investment in Fintech, Blockchain and Gaming

  • The Malta Stock Exchange will be helping Fintech start-ups. A Fintech Accelerator will help these companies develop and grow  
  • Work to attract e-Sports companies to Malta
  • Blockchain strategy to continue to be developed
  • Tech.mt will be a new agency that will look to promote Malta as a destination for such disruptive technologies

 

Schemes by Malta Enterprise and other fiscal incentives

  • New Schemes to be introduced by Malta Enterprise - Seed Investment scheme for start-ups - 
  • Start-up visa to facilitate foreigners to establish in Malta
  • Fiscal incentives for film industry will increase
  • SMEs with business in the UK will get help to navigate Brexit, thanks to a Malta Enterprise business advisory  

Tourism, Citizenship Programmes and Gozo

  • Tourism is expected to continue to increase over the coming year
  • IIP Programme to be strengthened
  • Malta Residency and Visa Programme (MRVP) to be strengthened as well
  • €1.50 per day partial compensation to Gozitan public sector employees organising collective transport
  • A refund of 30% on wages, up to €6,000, to be eligible for employers creating new jobs in Gozo with a 3 year contract or more