Malta Budget 2024: Comprehensive Overview of the Fiscal Measures

Tax Overview in The Malta Budget 2024

. Magdalena Velkovska | 03 Nov 2023

Tax Overview in The Malta Budget 2024 img

Malta's Finance Minister presented the highly anticipated Malta Budget for 2024 this week, outlining a series of fiscal measures and incentives to stimulate the economy and support various sectors. The Malta budget speech featured key updates, including the retention of the country's Full Imputation Tax system and the extension of a grant for first-time property buyers, further incentives related to real estate acquisitions, and a host of other measures.

Retention of Malta's Full Imputation Tax System in the Malta Budget 2024

One of the most significant highlights of the Malta budget is the retention of Malta's Full Imputation Tax system, offering a competitive advantage for businesses operating on the island. Additionally, the grant of €10,000 for qualified first-time buyers of immovable property in Malta is extended, providing financial relief to new homeowners.

Global Minimum Tax in the Malta Budget 2024

Furthermore, the budget revealed several tax-related policies arising from the Global Minimum Tax initiative, assuring that Malta will not introduce an Income Inclusion Rule, Undertaxed Profits Rule, or a domestic Minimum Top-up Tax, maintaining a favorable environment for businesses and investors.

Corporate Social Responsibility and Vulnerable Categories 

In terms of new fiscal measures, the Malta budget 2024 introduces several initiatives aimed at supporting the voluntary sector and individuals with disabilities. Businesses making donations to voluntary organizations registered with the Commissioner for Voluntary Organizations and operating in specific sectors will receive a tax credit capped at €500, encouraging corporate social responsibility.

The tax-exempt bracket for pensions will be extended, offering relief for retirees, while the tax credit for qualifying therapy for children with disabilities is set to increase, providing crucial support to families in need.

Children Allowance and COLA in the Malta Budget 2024

Children allowances were addressed in the budget as well, indicating the government's dedication to providing support for families.

The Budget additionally provides for an increase in the Cost of Living Adjustment (COLA) and offers various grants and incentives for businesses, employees, and industry. Regulatory updates were also mentioned, reflecting the government's commitment to creating a business-friendly environment.

Highly Skilled employees and Professional Sportsmen 

The Highly Qualified Persons Rules, which attract skilled professionals to Malta, will be retained and consolidated, enhancing the country's reputation as an attractive destination for foreign talent.

The 7.5% income tax rate currently applicable to athletes and licensed coaches will also be extended to other individuals working in sporting activities, promoting the growth of the sports industry in Malta.

Real Estate investment Incentives in the Malta Budget 2024

Another favorable update is the exemption on capital gains and stamp duty for the first €200,000 on property transfers to tenants who have leased the same property under a Housing Authority scheme. This measure aims to support affordable housing and ease the financial burden on tenants. 

Overall, Malta's 2024 budget focuses on maintaining a competitive tax regime, supporting social causes, and stimulating the economy. These measures are expected to have a positive impact on the country's business climate, real estate sector, and various other aspects of daily life for its citizens.


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Key Contacts

Dr Priscilla Mifsud Parker

Senior Partner, Corporate, Tax & Immigration

+356 22056122
pmp@ccmalta.com

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