Malta Budget 2025: Overview

The Minister of Finance delivered the 2025 Budget Speech on 28 October 2024, announcing that the Maltese economy has grown by 5.9% in real terms in the first 6 months of 2024.

Budget highlights include a widening of the personal income tax rate bands and the announcement of certain fiscal and immigration initiatives aimed at businesses, SMEs and start-ups in particular. Additional incentives aimed at improving Malta's attractiveness as a place for doing business are also in the pipeline.

International Taxation

Local rules transposing the EU Minimum Tax Directive, which implement Pillar Two rules introducing a global minimum tax rate of 15% for large multinationals, came into force in 2024. Malta opted to defer the implementation of the OECD's Pillar Two rules, effectively postponing its application for local in scope entities for 6 consecutive years. As a result, Malta does not charge a top-up tax and, at this time, these rules primarily serve to ensure the