Fiscal Measures

The Malta Budget 2024 has a number of Fiscal Measures.

Extension of prior year fiscal measures

  • VAT exemption on the first €300,000 spent to refurbish ones residence.
  • Exemption on the tax on capital gains made on the first €750,000 received when selling a property which has been vacant for 7 years or is situated in an urban conservation area.
  • Grants ranging between €15,000 to €30,000 to first time buyers, which grant depends on whether the property is acquired in Malta or Gozo respectively have been extended by this budget for a further 2 years.
  • Over a period of 10 years, first time buyers of immovable property will receive a grant equivalent to €10,000. This applies to properties acquired from 1st January 2022 onwards and whose value does not exceed €500,000.
  • The Deposit Payment Scheme will be extended to include properties whose value amount to €225,000. This allows individuals to take an interest free loan equivalent to 10% of the value of the property, which amount is guaranteed by the state.
  • The Covid-19 assistance scheme allowing for the transfer of certain unutilized capital allowances between group companies has been extended for the coming year. 
  • The Minister also announced that the reduced rate of duty to 1.5% on transfers between family members of business property or shares when transferred inter-vivos shall be extended.
  • The Minister also announced that tax refunds ranging between €60 to €140 shall be again issued.

New or amended fiscal measures

  • Whereas little was said during the Budget speech by the Minister he did note that the Global Residence Programme and Malta Residence Programme need to remain attractive. Thus some change in this area may be expected in the year ahead.
  • The Microinvest scheme shall be extended to incorporate Social Enterprises as defined by the Social Enterprise Act.
  • The tax rebate applicable to parents of children under the age of 16 years who attend cultural, creative or sports activities shall be increased from €100 to €300 per year per child. 
  • Pensioners who are entitled to the maximum pension will still be exempted from the payment of income tax. In fact, the pension income which is exempted from tax will be increased in terms of the COLA to €14,968. Moreover in computing
  • the rate of tax for pensioners earning taxable income, the pension income shall be reduced by 40% so as to determine the applicable tax bracket rate for the pensioner. 
  • Parents having children with special needs paying for their therapy will be entitled to a tax credit of €200 per year. 
  • Tax rates on royalty income derived by authors or co-authors shall be reduced from 15% to 7.5%.