Malta’s Budget 2022

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Malta’s Budget for 2022 was presented by the Minister for Finance & Employment, the Honourable Mr Clyde Caruana on the 11th of October 2021. Highlights from the budget for 2022 are detailed below.

Malta Budget 2022 Overview

Support Measures Detail
Business Measures
  • A 'Start-up Visa' to be launched with the aim of attracting start-ups to move to Malta. In addition, a new 'Blue Med Hub' will be created to target and support both local and foreign start-ups.
  • More business support will be provided for the Arts industry. €1 million fund will be created as a guarantee scheme to protect artists and a €2 million scheme to provide support for events negatively impacted by the Covid-19 restrictions.
  • Parents transferring qualifying businesses to their children will pay a reduced stamp duty rate of 1.5%.
  • A new scheme will be launched by Malta Enterprise whereby businesses re-investing a percentage of their profits in their business or another business, will receive a tax benefit, providing the investment is made within two years from the beginning of 2022.
Property Measures
  • No stamp duty or tax on the first €750,000 on properties built over 20 years ago and that have been vacant for more than seven years, properties in the Urban Conservation Area (UCA) and properties built in the traditional Maltese style.
  • Property purchased or owned in urban conservation areas may benefit from a VAT refund of up to €54,000 on the first €300,000 of restoration work.
  • First time buyers purchasing qualifying property will benefit from a grant of €15,000 for property in Malta and €30,000 for property purchased in Gozo.
  • First and second time buyers, along with buyers purchasing in Gozo, will continue to benefit from the existing schemes in place.
  • The Equity Sharing Scheme will now apply for persons over the age of 30, instead of 40.
Individual Tax Measures
  • Weekly wage increase of €1.75 for cost of living increases.
  • Individuals earning less than €60,000 will continue to receive tax refunds ranging between €60 and €140.
  • The tax rate on part-time income will be reduced from 15% to 10%.
  • The interest rate on balances of income tax and VAT will increase to 7.2%, starting from the 1st of June 2022.
  • Individuals working in the arts sector will benefit from an income tax rate of 7.5%, based on a 3 year average period.
  • Part-time employees will have the opportunity to pay social security on more than one job up to 40 hours a week.
  • Individuals earning less than €20,000 in non-managerial positions will be taxed at 15% on the first €10,000 made from working overtime.
  • Stipends will be increased by 10%. Students may work up to 25 hours without losing their stipend.
Measures for Pensions & Senior Citizens
  • Individuals receiving social security pensions will receive €5.00 euro more per week
  • Tax rebates for pensioners will increase. Income up to €14,318 will be exempt from tax.
  • Individual senior citizens, widows & widowers will receive an additional €520 to €780 per year, providing their income is not greater than €10,221.
  • Income of working pensioners will not be subject to tax during the five year period starting from next year.
  • Individuals not entitled to receive a pension, will benefit by a bonus increase of €150 per year.
  • Individuals over 80 years, benefitting from the supplementary allowance, will be eligible for free medical assistance.
Family Measures
  • Free childcare services will be extended to benefit parents working shifts and on weekends.
  • For parents with children under the 23 years of age, who are both working, the in-work benefits threshold will increase from €35,000 to €50,000. For families, where only one parent is employed, the threshold will increase to €35,000.
  • The disabled child allowance will increase by €5.00 a week, increasing the annual allowance to €1,560.
  • Grants for parents who stop work to look after a disabled child will increase to €500.
  • New parents, by either birth or adoption, will receive a grant of €400, up from €300.
  • More medicines and treatments will become freely available by the Government. Some of which include - medicines for cancer, osteoporosis, and mental health.
  • 'Home Helper of Your Choice' scheme to increase from €5.50 to €7.00 per hour.
  • 'Carer at Home' benefit to increase from €6,000 to €7,000.
Transport, Sustainability & Environment Measures
  • Free public transport for Malta residents, commencing 1 October 2022.
  • Electric and plug-in hybrid vehicles will continue to be exempt from registration tax and the annual road license fees for the initial five years.
  • 1,200 electric vehicle charging points across Malta and Gozo to be installed over three years.
  • Vehicle owners can benefit from a grant up to €11,000 for the purchase of electric or plug-in hybrid vehicles, €12,000 if the scrappage scheme is utilised.
  • Vehicle owners who convert their cars from petrol to gas and thereby reducing the CO2 emissions by 25% can still benefit from a €400 grant. Likewise, owners of vehicles used for passenger and goods transport may also benefit up to €800.
  • The VAT refund scheme for acquiring Bicycles and Pedelec Bicycles (electric bicycles) will be extended.
  • Investment of €20 million (over 5 years) for the afforestation of Inwadar National Park in the south of Malta.
  • More investment to preserve and create public gardens, parks, urban spaces and the Ta' Qali National Park Project.
  • Incentives for the restoration of wells and installation of reverse osmosis systems will be renewed.
  • Solar panels to be installed on all Government buildings.
  • €8,000 grants for farmers to convert unused agricultural land into fruit orchards.
  • Continued work on the installation of a second interconnector cable to Sicily.
  • Increased investment in Enemalta's electric power distribution network.

Reference

Disclaimer

Whilst we endeavour to provide precise and timely information, there can be no assurance that such article is accurate as of the date it is received. The information provided herein is merely intended for general information purposes and cannot be construed as professional advice without seeking an appropriate consultation.

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