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ARTICLE · 29 OCTOBER 2025

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Malta Budget Highlights 2026

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Non-taxable income thresholds are set to increase, particularly benefiting individuals with two or more children

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ECONOMIC DEVELOPMENT

  • Malta's economy is projected to expand by 4.1% in real terms in 2025, with a similar rate of growth anticipated for 2026.
  • Inflation is expected to stabilise at 2.2% in 2025, reflecting continued price moderation.
  • The deficit is forecast to narrow to 3.3% of GDP by the end of 2025, and further decline to 2.8% in 2026.

TAX MEASURES

Personal Tax: Adjustments to Tax Brackets for Parents with One or Two Children

  • Non-taxable income thresholds are set to increase, particularly benefiting individuals with two or more children. For those assessed under the parent computation and supporting at least two children, the tax-exempt threshold will rise from the current €13,000 to €30,000 by 2028.

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