Malta Budget 2026: Key Benefits for U.S. Families & Entrepreneurs Relocating to Malta

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Malta’s 2026 Budget reinforces the country’s long-term vision: a stable, resident-focused EU base offering affordability, opportunity, and a high quality of life. For U.S. families and entrepreneurs considering relocation, the budget highlights why Malta continues to stand out among European destinations.

Business & Innovation Incentives

Malta continues to strengthen its position as a leading hub for international founders, executives, and remote-first professionals. The 2026 Budget deepens this with several high-impact measures:

60% Tax Credit on Business Investment

Companies can recover up to 60% of qualifying investment through tax credits, significantly reducing the cost of establishing or expanding operations.

A €200,000 investment could generate €120,000 in tax credits.

175% Deduction for R&D and Innovation

Eligible R&D, digital infrastructure, and AI initiatives can be deducted at 175% of their value.

Spend €100,000 → deduct €175,000.

Accelerated Deductions for AI, Automation & Cybersecurity

AI systems, robotics, digitalisation, and cybersecurity tools qualify for accelerated depreciation, improving early-year cash flow.

Government Wage Incentives

Companies employing staff for four years or more receive government-backed wage support, reducing operational costs for long-tenured employees.

Free Access to National AI & Cloud Infrastructure

SMEs benefit from free high-performance computing, AI tools, and cloud services—lowering technology overheads for fast-growth companies.

Malta’s innovation ecosystem balances stability, simplicity, and strong government backing—an ideal foundation for globally mobile U.S. entrepreneurs.

Sustainability & Infrastructure

The 2026 Budget prioritizes long-term livability and modern infrastructure, supporting a more sustainable national environment.

€5,000 Annual Mobility Incentive (Under 30s)

Residents under 30 who voluntarily surrender their driving license receive €5,000 per year for five years—a total of €25,000.

Expanded EV Grants (Up to €12,000)

Malta offers substantial financial support for the purchase of electric vehicles, including:

• Up to €12,000 in EV purchase incentives

• Additional bonuses for scrapping older combustion vehicles

• Lower annual circulation fees for EV owners
  

These grants bring down the total cost of switching to electric mobility.

Electric Motorcycle & Scooter Grants (€1,000–€3,000)

Residents purchasing electric motorcycles or scooters benefit from:

• €1,000–€3,000 grants, depending on battery size

• Additional scrappage bonuses for replacing older bikes

• Lower annual running costs and road license fees
  

Electric two-wheelers remain a particularly efficient option for navigating Malta.

Charging Infrastructure Improvements

Government-backed programs continue to expand:

• Public charging points across major areas
• Incentives for home charging installations
• Ongoing upgrades to improve EV accessibility

Waste & Renewable Energy Investment

Over €100 million is directed toward modernizing waste treatment facilities and expanding renewable energy capacity.

Enhanced Ferry & Transport Links

New routes and upgraded terminals reduce congestion and improve mobility across the island.

Stronger Family Support

Malta introduces several measures that support resident families, including benefits directly applicable to high-income households relocating from the U.S.

€12,000 International Adoption Refund

Families adopting internationally can receive €12,000, helping offset legal and administrative costs.

Expanded Family Tax Bands (By 2028)

Malta’s updated structure gives families significantly more tax-free income:

• One child: first €18,000 tax-free

• Two or more children: first €30,000 tax-free

• Lower 15% and 25% brackets extending further before the 35% rate applies
  

U.S. Comparison

U.S. federal tax brackets do not adjust based on family size.

Malta’s tax system directly reduces annual tax exposure for relocating families.

More Accessible Housing

While some incentives do not apply to non-EU buyers, the 2026 Budget introduces meaningful benefits for clients obtaining Malta Citizenship by Merit (MCBM).

0% Stamp Duty for First-Time Buyers — MCBM Only

Once citizenship is granted, MCBM clients purchasing their first residential property in Malta benefit from:

• 0% stamp duty on the first €175,000

• Saving up to €8,750
  

To qualify, clients must:

• Rent during the residency stage, and
• Buy their first property only after citizenship approval
  

No Annual Property Tax

Malta charges no yearly property tax, unlike the U.S., where recurring taxes commonly exceed $10,000–$40,000 per year for HNW families.

This makes long-term home ownership in Malta exceptionally cost-efficient.

Enhanced Retirement & Care Support

Malta continues to support residents managing elderly care, making the island increasingly attractive for multi-generational families.

€9,000 Annual Live-In Carer Grant

Residents hiring a live-in carer receive €9,000 per year, significantly easing private care costs.

Widower Allowances

Additional support is available for widowers with dependent children.

Long-Term Pension Growth

Residents contributing to Malta’s pension system benefit from annual upward adjustments to pension income.

These measures contrast with the U.S. federal system, which offers no equivalent long-term care subsidies.

A Reliable, High-Quality European Base

With its resident-focused budget, English-speaking environment, strong education and technology infrastructure, and predictable financial structures, Malta offers U.S. families and professionals a secure, stable, and future-ready European base.

Book Your Consultation

Our team can help you evaluate the most efficient residency or citizenship pathway and structure your relocation plan around your family and business goals.