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Malta’s Budget 2023 – The Highlights

2022.10.28 - Budget 2023 Malta Smaller File (MH)

Malta’s Budget for 2023 was presented by the Finance Minister, the Honourable Mr Clyde Caruana, on the 24th of October 2022. Highlights from the budget for 2023 are detailed below.

Malta Budget 2023 Overview

Support Measures Detail
Business Measures
  • A 'one-stop shop' for startups will be introduced to help startups set up their business in Malta. Malta Enterprise will develop a new Business Incubation Centre to support innovative startups with the new Malta Startup Residence Programme having just been launched.
  • €5 million invested in Technology Extension Support - a new research and innovation program.
  • Under the Business Enhance Scheme, €40K will be invested in cash grants for small to medium sized enterprises.
  • Rent subsidies will be available for businesses requiring rental support on industrial spaces for up to €50K annually over a maximum period of six years.
  • Parents transferring qualifying businesses to their children will continue to pay a reduced stamp duty rate of 1.5%.
  • Social enterprises are to become eligible for the Micro Invest Scheme which offers a tax credit up to €70K over three years.
  • €40K tax credit for enterprises investing in digital projects and projects that cut energy and reduce waste.
Property Measures
  • First-time buyers will receive a €10,000 grant (over 10 years) to buy a property up to €500,000, including properties acquired in 2022.
  • Home buyers of properties valued up to €225,000, who do not have the required 10% deposit, will benefit from interest-free loans. Available to those under 40 years of age.
  • No stamp duty or tax on the first €750,000 of the property price 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. This will continue for another two years.
  • 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 and second time buyers, along with buyers purchasing in Gozo, will continue to benefit from the existing stamp duty reduction schemes in place.
Individual Measures
  • Weekly wage increase of €9.90 for the cost of living increases, or €514.80 per year. With public sector workers receiving an additional €3.50 per week.
  • Individuals earning less than €60,000, will continue to receive tax refunds ranging between €60 and €140.
  • An average grant of €300 will be given to low income earners to help compensate for the rise in prices.
  • The tax rate on royalty income for authors will be reduced from 15% to 7.5%.
  • Stipends will be increased by the cost of living adjustment.
  • A pension increase of 23% will be offered to police and army officers who work four years after their 25 year retirement period.
  • Individuals working atypical hours and earn not more than €20,000 will receive a €150 grant.
Measures for Pensions & Senior Citizens
  • Tax rebates for pensioners will increase. Income up to €14,968 will be exempt from tax.
  • The tax exemption on pension income will continue.
  • The pension increase is €12.50 per week or €650 per year.
  • Widows & widowers will receive an additional increase of €3.54 weekly or €169 per year.
  • Service pensions are to be increased by €200.
  • Individuals not entitled to receive a pension, will benefit by a bonus increase of €50 per year.
  • Individuals who have not paid all of the social security contributions will receive a bonus between €450 and €550.
Family & Education Measures
  • Children's allowance increased to €90.
  • A tax deduction of €300 available to parents whose children participate in sporting and cultural activities.
  • Grants for parents who stop work to look after a disabled child will increase to €4,500 yearly.
  • Parents of a disabled child will receive a tax credit of €200.
  • Individuals aged 18-30 years who were not in work for any period due to mental health issues will be given up to two years' worth of credit for social security contributions.
  • Free fruit and vegetables will be supplied to schools.
  • A new laptop will be provided to children in year 7.
Health Measures
  • Some new medicines and treatments will be introduced for free in 2023. These include medicines for multiple sclerosis, diabetes, osteoporosis and nutrition formulas.
  • Vaccinations for Human Papillomavirus (HPV) will be offered for free in 2023.
  • Another fund will be created to ensure urgent cancer patients receive treatment for a 12 week period.
  • Chemotherapy pumps to be made available for at-home care where required.
  • Cancer patients in Gozo will now benefit from the HNA Clinic – Holistic Needs Assessment.
  • Services provided by the Assisted Reproductive Technology (ART) Clinic are to be extended to include assistance for couples trying for a second child. Pre-implantation Genetic testing (PGTM) will be also offered.
  • Patients with mental health issues will be offered more assistance through a Therapeutic Centre.
  • More support services will be introduced to help educate the community and reduce the stigma surrounding mental health issues.
Transport, Sustainability & Environment Measures
  • €600 million fund to be established to help with increasing energy and cereal prices.
  • Electric vehicle charging points across Malta and Gozo to increase from 340 to 1,200 by 2024.
  • 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.
  • 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.
  • Operators of buses, coaches and trucks who install diesel filters and PV panels can benefit from a €900 grant.
  • New ferry stations for Marsamxett and Bugibba.
  • To reduce air pollution around the Grand Harbour, €50 million will be invested to install power systems for large vessels to connect to the national grid while they are docked.
  • Continued work on the installation of a second interconnector cable to Sicily.
  • Investment of €19 million in reverse osmosis and water treatment.
  • Incentives for the restoration of wells, solar panel installations and solar water heaters will continue.

For further information about Malta’s Budget for 2023, please contact us. 

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