A new tax deduction of 175% will be available on eligible Research and Development expenses.

Investments in AI, digitalisation, automation, modernisation, and cybersecurity will qualify for accelerated depreciation over a two-year period.

• The Micro-invest tax credits for enterprises based in Malta are set to increase to €65,000, up to a maximum of 65% of eligible expenditure. Gozitan and other specific enterprises will benefit from an increased maximum threshold of €85,000 on eligible expenditure.
• For employees who have been working with the same company for more than four years, the Government will subsidise up to a 65% increase in wages for two years, up to a maximum of €780 per year. For Gozitan enterprises, the subsidy will increase to 80%, and the threshold will increase to €960.

Tax credits of up to 60% will be granted on qualifying investments made within the next two years, but claimable in four years, on purchases of machinery, tools, IT systems, software, cybersecurity solutions, and related equipment.

• Pensions for the elderly will increase by €10 per week.
• Pensions will be exempt from income tax up to €16,636. Any other taxable income derived by pensioners will be exempt from tax up to an amount equivalent to double the maximum pension amount.
• Pensions for widows and widowers will increase by €13.50 per week, while widows and widowers with children under 23 years of age will receive €23.50 per week.
• Low-income earners will benefit from an increase in their supplementary allowance, amounting to €27.30 per week (for married persons) and €14.40 (for single persons).
• The annual supplementary allowance given to people over the age of 65 will increase to €250 and will become payable to both spouses (rather than to one of the spouses).
• The service pension will increase by €200.

The sickness benefit will increase to €25.81 per day for married persons and €17.21 per day for single persons.

• Persons who are drug dependent and attending a rehabilitation programme will receive an increase of €10 per week on their allowance.
• On successful completion of the programme and upon starting employment, they will be entitled to four years of Social Security Contributions (SSC), while the employer engaging them will be exempted from two years of SSC.

Several increases have been announced for persons with disabilities, their carers, and families.

• The allowance paid to the elderly living on their own, with relatives, or in a private institution will increase by €75.
• Other increases have been announced specifically for the elderly.

• The children’s allowance for families earning less than €30,000 per annum will increase to €250 per child.
• The children’s allowance for families earning less than €23,000 per annum will increase to €417 per child.

Increase of €75 per child.

• An increase in the birth or adoption allowance of €500 per child (€1,000 for the first child, €1,500 for the second child, and €2,000 for each subsequent child).
• The reimbursement of expenses will increase up to a maximum of €12,000 for families who adopt a child from abroad (previously €10,000) and €2,000 for families who adopt a child locally (previously €1,000).

• Self-employed persons will be entitled to parental leave, bereavement leave, and miscarriage leave.
• Support will be provided to self-employed individuals and small businesses to invest in an industrial garage from which they operate. The Government shall fund up to 50% of the cost of the industrial garages, up to a maximum of €300,000.

• Financial aid of €500 for each family with a child in Year 10 or Year 11 to support digital educational development.
• The student stipend is set to increase by 15%.
• Extension of the free gym membership for teenagers born between 2004 and 2009.
• A one-time monthly allowance of €280 will be provided to Gozitan students who attend their secondary or tertiary education in Malta.
• Free AI tools (e.g., ChatGPT and Gemini) will be provided to individuals who enrol in specific courses.
• A Digital Identity Wallet is expected to be introduced, through which all identity documents and certificates will be digitally stored and verified.
• Cooperative societies will be exempt from the obligation to submit audited accounts for income tax purposes.

• The first-time buyer scheme will be enacted into law and expanded to include individuals who own non-residential properties.
• The home loan deposit assistance has been increased up to a maximum of €25,000 (10% on immovable properties costing up to €250,000, repayable over 25 years).
• The reduced stamp duty rate of 3.5%, currently applicable to persons who inherit a property already being used as their ordinary residence, will now apply on the first €400,000 (an increase of €200,000).
• The equity sharing scheme will be extended to people aged between 25 and 30.
• The schemes “Ixtri Proprjetà Sostenibbli 2025” and “Irrinova Darek” will be continued.

• Family business schemes will be extended, including a reduction in stamp duty to 1.5% for donations between qualifying family members.
• The existing grants for consultancy services and succession planning, training vouchers, and support for digitalisation and financing will also be extended.

• New and existing schemes were announced to encourage investment in renewable energy systems.
• New wind turbines will be installed in the Exclusive Economic Zone (EEZ) to generate renewable energy.

• Young people (up to 30 years old) who surrender their car licences will receive a grant of €5,000 over five years.
• Grants of €1,500 will be available to those switching from cars to motorcycles.
• Additional grants will be provided to promote the purchase of motorcycles.

• Existing grants extended to encourage the purchase of electric vehicles.