Malta: Malta Budget 2019

Below are the salient points of the Malta Budget for 2019, which was presented to the House of Representatives by the Hon. Prof. Edward Scicluna, Minister of Finance, on 22 November 2018.

Economic Performance

  • Malta registered the highest fiscal surplus in the EU – Malta registered a surplus of €392.7 million, equivalent to 3.5% of GDP in 2017. Government debt has been reduced to 47% of GDP.
  • Economic growth – Malta registered an economic growth of 5.4% in the first 6 months of 2018.
  • Unemployment rate – Malta registered a record unemployment rate of 3.8%.
  • Cost of living – The Minister announced that the cost of living allowance (COLA) is set to be €2.33 per week.


  • No new taxes were registered, be it direct or indirect taxes.
  • Tax refunds to employees earning less than €60,000 shall continue to be granted in 2019.
  • Single taxpayers earning part-time income ranging between €9,100 and the minimum wage shall not be subject to tax.
  • Tax deductions given to parents of children attending private schools shall be increased by €300.
  • Voluntary Organisations whose income does not exceed €10,000 shall be exempt from tax.
  • Fiscal incentives shall be given to entities operating in the film industry.
  • VAT refunds of up to €70 shall be given for the installation and use of domestic reverse osmosis systems.
  • The VAT rate for electronic books and musical instruments shall be reduced to 5%.
  • Purchasers of bicycles or electric-bicycles shall be eligible for a VAT refund.
  • Vehicle VAT refunds are to be concluded with the final tranche of payments for cars registered in 2008.
  • The reduced rate of stamp duty applicable to the transfer of shares in a family business from 2% to 1.5% shall be extended for a further year. For more information, please click here.


  • An increase was granted in contributory and non-contributory pensions of €2.17 per week, over and above the COLA increase.
  • Non-taxable pension income shall increase to €13,434 to ensure that pension increases are not taxed.
  • Persons over 75 years of age still living at home shall continue to receive grant of €300 per year.
  • Bonds shall once again be issued for pensioners to emulate the Savings Bonds 62+.
  • Service pensions shall increase by €200, and the method in which they are calculated shall also change, leading to an increase of up to €11 per week.
  • Public sector workers shall be able to postpone retirement and benefit from an increased pension once they decide to retire.
  • The means test shall no longer be used for carers below the pensionable age who live with and care for an elderly person.
  • Persons caring for persons over 85 years of age shall be eligible for a carer's allowance, with no medical assessment needed.
  • Measures shall be introduced to enhance the Third Pillar Pension Scheme and the Voluntary Occupation Pension Scheme.


  • The Parliamentary Secretariat for Social Accommodation has published a White Paper proposing the setting up of a new regulatory framework to reform the residential rental market in Malta. For more information, please click here.
  • The means test shall no longer be used to determine who has a right to affordable housing. There shall instead be two criteria for eligibility: the family's gross income and rental costs.
  • Landlords shall be offered fiscal incentives in return for providing affordable housing to tenants for a period of seven years.
  • An equity sharing scheme is to be introduced in terms of which, persons over 40 years of age that purchase a residential home, paying 50% themselves and paying the remaining balance with a bank loan, shall be subsidised by the Government and not pay interest on their loans.
  • Social housing is to be bolstered, with the conversion of dilapidated properties into social housing.
  • All previous property incentive schemes related to first-time buyers, second-time buyers, properties in Urban Conservation Areas, property restoration and purchasing property in Gozo shall all be extended for a further year.
  • Should you require further information, please do not hesitate to contact our Real Estate Team.


  • Malta is strengthening its anti-money laundering strategy, by increasing transparency and accountability, strengthening its regulatory base, finalising its national risk assessment plan and setting up a national coordinating committee.
  • The Malta Development Bank is to offer new schemes and facilities to provide investment opportunities to SMEs and infrastructure projects. The Bank is to launch a financial instrument in collaboration with a commercial bank and the Family Business Office to facilitate the transfer of family businesses.
  • The Malta Stock Exchange has launched a programme called the FinTech Accelerator to assist companies starting operations in the FinTech sector. Plans have been put in place to allow for financial instruments known as Real Estate Investment Trusts (REITS) to be traded on the Exchange.
  • For more information, please do not hesitate to contact our Banking & Finance Team.


  • Malta has promulgated a number of new crypto laws, namely the Virtual Financial Asset Act, the Malta Digital Innovation Authority ("MDIA") Act and the Innovative Technology Arrangements and Services Act, making Malta one of the first jurisdictions in the world to regulate this innovative technology sector.
  • Malta also has plans to lay down a regulatory framework in artificial intelligence and the internet of things.
  • The Malta Communications Authority is launching a feasibility study identifying interest and the application of 5G technology.
  • A new entity, called Tech.MT, shall focus on marketing Malta as a hub for the digital economy and disruptive technologies, such as blockchain.
  • Should you require further information, please do not hesitate to contact our FinTech Team.


  • A new Gaming Act has been promulgated, amassing all gaming laws and regulations in Malta under a single Act. Click here for more information.
  • Incentives are to be introduced encouraging eSports companies to establish themselves in Malta.
  • Should you require further information, please do not hesitate to contact our Gaming Team.


  • Malta Enterprise is to launch a business advisory service intended to assist Maltese SMEs whose business depends on the UK market.
  • Plans have been put in place to attract investment to Malta once Brexit is concluded.


  • The Seed Investment Scheme, which promotes start-up growth, is to be extended.
  • A start-up visa scheme is to be introduced to encourage foreign start-ups to establish themselves in Malta.
  • A co-working space scheme is to be launched as an accelerator program in partnership with an international entity.


  • Air Malta, the national airline, is expected to announce financial results that show the national airline is breaking even.
  • The National Aviation Policy is to be updated to include a Master Plan for the Malta Airport.
  • Work is to commence on the construction of an Air Traffic Control Centre to service the needs of the sector for the next fifty years.
  • Should you require further information, please do not hesitate to contact our Aviation Team.


  • Plans have been put in place to increase parliamentary and court autonomy.
  • Improvements shall be made to the Court's internal IT systems and online systems.
  • Improvements shall also be made to the legal aid system.


  • The Malta Individual Investor Programme and the Malta Residency and Visa Programmes have once again been extended.
  • Should you require further information, please do not hesitate to contact our Immigration Team.

Other Measures

  • A beverage refund scheme is to be introduced allowing for the operation of a deposit and recovery scheme for beverage containers in Malta.
  • Plans are in the pipeline to establish public-private partnerships which turn private lots into public car parks.
  • A Public Procurement Agency shall be set up to monitor all types of government contracts or concessions.
  • One additional day of vocational leave shall be granted to all workers in order to compensate for public holidays falling on a weekend.
  • Further investment in road Infrastructure has been made and €100m has been set aside for 2018.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions