The Budget for the 2026 legislature was presented to the Maltese Parliament on the 27th of October 2025, with the Minister of Finance highlighting Malta’s continued strong economic performance and the highest economic growth in the European Union.
Further to high inflation observed over 2024, previous measures to counteract the effects of the rising cost of living in Malta appear to have been effective, with the jurisdiction having seen a decrease in inflation from 5.6% in 2023 to 2.5% in 2024 and now expecting a further decrease to 2.2% in 2025 – this also in line with similar trends witnessed across the EU.
However, the effects of the rising cost of living continue to be felt by those who are most vulnerable, such as pensioners and low-income families. This is evidenced by a number of social measures featured in this year’s Budget, such as the various increases in pensions and other allowances.
High on Government’s agenda were measures designed to increase investment in digital innovation and AI, with environmental initiatives taking more of a back seat in this year’s Budget.
In addition, this year’s Budget had a heavy social focus with a variety of new social measures being introduced, the highlight of these being the introduction of new income tax brackets for taxpayers with children.
For another year running, no new taxes were introduced.
Click on the following link to read the full overview: Malta Budget 2026
