ARTICLE · 14 MAY 2025

Budget Implementation Act Measures

Grant Thornton Malta

Explore more from Grant Thornton Malta

The Budget Implementation Act, 2025 (the "Act") introduces amendments to the Income tax Act, the Income Tax Management Act, the Duty on Documents and transfers Act, and the VAT Act.

MaltaTax

The Budget Implementation Act, 2025 (the "Act") introduces amendments to the Income tax Act, the Income Tax Management Act, the Duty on Documents and transfers Act, and the VAT Act. Most changes take effect from the date of publication unless stated otherwise.

1. Amendments to the Income Tax Act (ITA)

1.1. Property Transfer Tax Relief

Article 5A(4)(c) of the ITA has been amended to refine the exemption from property transfer tax in relation to transfers of dwellings that are not part of a development project. The exemption applies if:

The property has been owned and used as the transferor's principal residence for at least three consecutive years; and
The transfer takes place within twelve months of the date the property is vacated.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Malta Budget 2027: The Measures For Non-EU Residents, And What The Budget Speech Did Not Change

Attard Baldacchino

VAT And Gaming In Malta: Is Your Business Ready For The 1st October Changes?

Malta Introduces New Individual Tax Programme Residency Rules

The Sovereign Group

Public Country-by-Country Reporting

European UnionTax

Grant Thornton Malta

VAT On Gambling In Malta From 1 October 2026

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Tax

Related Comparative Guides

Comparative Guide

Tax

Comparative Guide

Tax Disputes

See more popular content from

Tax

Malta’s New Tax Residence Rules 2026: What Changes In 2027

Malta has consolidated its special tax status schemes into a single framework effective January 2027, offering four distinct categories for foreign residents. Each category provides a flat 15% tax rate on foreign-source income remitted to Malta, with varying minimum annual tax obligations and eligibility requirements based on nationality and income source.

Remittance Basis Of Taxation For Individuals In Malta

Malta's remittance basis of taxation offers favorable treatment for individuals who are resident but not domiciled in Malta, taxing foreign-source income only when received in Malta while exempting foreign capital gains entirely.

Papilio Services Limited

Malta Introduces New Individual Tax Programme Residency Rules

Malta’s new Individual Tax Programme Rules will come into force on 1 January 2027, consolidating four existing residency programmes into a single framework. The rules retain the 15% tax rate on qualifying foreign-source income remitted to Malta but increase minimum tax thresholds, property requirements and application fees.

The Sovereign Group

Malta's New Individual Tax Programme

Malta has introduced a new Individual Tax Programme consolidating its existing residence schemes into a single framework effective January 2027. While maintaining the attractive 15% tax rate on foreign-source income, the programme introduces significantly higher economic thresholds and a five-year renewable status model, signaling a shift toward attracting genuine long-term residents willing to make substantial contributions to the Maltese economy.

Grant Thornton Malta

Malta Budget 2027: The Measures For Non-EU Residents, And What The Budget Speech Did Not Change

Malta's Budget for 2027, presented to Parliament on 26 October 2026, contains a set of measures that change the position of third-country nationals living in Malta from January 2027. It specifies no change to the Malta Permanent Residence Programme (MPRP), the Nomad Residence Permit, the special tax status programmes or the personal income tax rates.

Attard Baldacchino

Malta Personal Income Tax 2026: Updated Tax Structure

Malta's personal income tax system is grounded in progressive rates that apply to an individual's chargeable income, that is, total income after deductions, exemptions, and allowances. For the 2026 basis year...

Papilio Services Limited

Malta’s New Individual Tax Programme Rules: Key Changes Ahead Of 2027 Launch

Malta is consolidating its four existing tax programmes into a unified Individual Tax Programme framework, effective January 2027. The new rules introduce significantly higher annual tax thresholds, increased property requirements, and stricter application fees while maintaining the attractive 15% flat tax rate on foreign-sourced income remitted to Malta.

Malta’s Individual Tax Programme 2027: Key Changes From 1 January 2027

Malta is consolidating its special tax programmes into a unified Individual Tax Programme effective January 2027, maintaining the attractive 15% flat tax rate on qualifying foreign-source income while substantially raising financial thresholds and property requirements.

Mamo TCV Advocates

Taxation

The standard corporate tax rate applicable to companies registered in Malta is 35% and there are no thresholds for reduced rates of taxation applicable.

Malta Double Tax Treaties

Malta has concluded over 80 double tax treaties with major trading partners worldwide to eliminate double taxation on both passive and active income.

Chetcuti Cauchi Advocates