Fiscal Measures

The Malta Budget 2024 has a number of Fiscal Measures.

Local tax

  • The Minister mentioned that €40 Million shall be made available by way of cash grants to small and medium enterprises under the Business Enhance Scheme. The scheme is earmarked for startups, developing businesses, diversification and businesses engaging in new markets.
  • The existing reduced tax rate of 7.5% applicable to athletes and coaches will be extended to other employees working in the sport industry.
  • Businesses shall be eligible for a tax credit on donations granted to registered NGOs operating in social, environmental, or animal welfare up to a maximum of €500.
  • The Minister noted that the current rules which provide fiscal incentives aimed at attracting highly qualified foreign individuals employed in specific sectors will be revised and consolidated in one system. Moreover, the fiscal credits available under the Get Qualified and Higher Educational Qualifications will be extended further.
  • The reduced rate of duty from 5% to 1.5% on transfers inter-vivos between family members in respect of business property or shares shall be extended. It was also announced that family businesses that are registered as such with the Family Business Office shall benefit from increased Tax credit capping when investment in these businesses takes place.
  • In the coming days consultation will take place in relation to a new fiscal incentive for Real Estate Investment Trusts with the intention to strengthen the regulatory framework of the Malta Stock Exchange.

International Tax

  • The Minister explained that in terms of the EU Directive the global minimum tax of 15% will be adopted at EU Level with effect from 2024 and will apply for companies forming part of multinational groups with consolidated revenue over €750m.  However, Malta will exercise the option not to adopt this directive in 2024.  This means that Malta will not be  introducing the Income Inclusion Rule, the Undertaxed Payment Rule and the Qualified Domestic Minimum Top-Tax in 2024.
  • The current tax system will not be altered and the current full imputation tax credit system will still be applicable.  He explained that the Government will strive to ensure that Malta will introduce a system of grants and tax credits (including the Qualified Refundable Tax Credits) which conform with EU and OECD Regulations.  He mentioned that although the tax rate of the aforementioned companies might increase, the Government will ensure that Malta retains its attractiveness for such entities.

Immovable Property

  • The existing fiscal incentives applicable to the acquisition and sale of vacant properties will be retained. Through these measures no income tax and no stamp duty will be payable on the 1st €750,000 of the value of the property and there will be VAT savings of a maximum of €54,000 on the 1st €300,000 spent on restoration. 
  • First time buyers of property located in Malta and Gozo will receive a grant of €15,000 and €40,000 respectively.
  • No tax and stamp duty shall be payable on the first €200,000 on property transferred which benefitted from Housing Authority schemes or Housing Benefit schemes.