There were several important legislative changes which were published over the course of April 2025. Below is an overview of the key updates across different areas.
The Validity of Development Permits (Amendment) Regulations, 2025, published on the 1st April 2025, extend the validity of development permits with the aim of supporting ongoing construction projects delayed by external factors. On the 17th April 2025, the Amendment or Revocation of a Condition Imposed in a Contract of a Property Transferred by the Government, the Lands Authority or Ecclesiastical Entities by Means of a Sale or Emphyteusis (Amendment) Regulations, 2025 were published. These regulations introduce a structured procedure and fee schedules for revising conditions on Government-transferred property, while the Expired or Expiring Emphyteutical Concessions (Amendment) Regulations, 2025, published on the 29th April 2025, revise the existing framework governing Government land granted by way of emphyteutical concession, introducing new concession terms and eligibility criteria.
The Financial Institutions Act (Safeguarding of Funds) (Amendment) Regulations, 2025, published on the 4th April 2025, transpose the provisions of Article 3(1) of Regulation (EU) 2024/886, as regards instant credit transfers in Euro. Also published on the 4th April, the General Product Safety (Implementing) Regulations, 2025, strengthen the product safety framework, implementing the requirements of Regulation (EU) 2023/988 on general product safety, amending related EU legislation. The Simplification of Exchange of Information between National Law Enforcement Authorities and other Authorities of the Member States of the European Union having similar powers Regulations, 2025, published on the 8th April 2025, establish rules on the exchange of information between the competent law enforcement authorities for the purpose of preventing, detecting or investigating criminal offences. Meanwhile, the Measures for a High Common Level of Cybersecurity across the European Union (Malta) Order, 2025, published on the 8th April 2025, transpose Directive (EU) 2022/2555 on measures for a high common level of cybersecurity across the Union, amending relevant EU legislation.
Additionally, on the 17th April 2025, the Budget Measures Implementation Act, 2025 were published. Key amendments affect the Income Tax Act, VAT Act, Social Security Act and other legislation, streamlining compliance and introducing updates across several sectors.
One bill is currently in progress in addition to the previous bills mentioned in our previous legal update for March 2025. The Employment and Industrial Relations (Amendment) Bill (Bill 132 of 2025), proposes a longer prescription period applicable to proceedings for an offence which falls under the Employment and Industrial Relations Act, Chapter 452 of the laws of Malta.
At a European level, the European Commission imposed landmark fines on Apple and Meta of €500 million and €200 million respectively, for non-compliance with the Digital Markets Act. Apple was penalised for restricting app developers’ ability to inform users of alternative offers, while Meta’s “Consent or Pay” model was found to be in breach of the Digital Markets Act for failing to offer a less personalised but equivalent alternative.
In addition, the European Council gave its final green light to the Commission’s proposal known as the ‘Stop-the-clock’ directive. This Directive postpones, by two years, the entry into application of the Corporate Sustainability Reporting Directive (CSRD) requirements for large companies and listed SMEs and, by one year, the transposition deadline and the first phase of the application (covering the largest companies) of the Corporate Sustainability Due Diligence Directive (CSDDD). On the 14th April 2025, the European Council adopted a directive (DAC9) that will extend cooperation and information exchange in the area of minimum effective corporate taxation. The objective of this Directive is to put into operation specific provisions of the Pillar 2 Directive that implemented on an EU basis the G20/OECD global agreement on international tax reform. On 9th April 2025, the European Commission launched the AI Continent Action Plan, having five key pillars: (1) Building a large-scale AI data and computing infrastructure, (2) Increasing access to large and high-quality data, (3) Developing algorithms and fostering AI adoption in strategic EU sectors, (4) Strengthening AI skills and talents and (5) Regulatory Simplification.
Locally, the Malta Tax and Customs Administration (“MTCA”) published Guidelines in relation to the VAT rules applicable to small enterprises. These guidelines provide guidance, in conformity with article 75(2) of the VAT Act (Chapter 406, Laws of Malta), on the interpretation and application of the provisions contained in the VAT Act as regards the exemption for small enterprises established in Malta for supplies made in Malta, particularly taking into consideration the new rules applicable from 1 January 2025 pursuant to the adoption of Act XXXVIII of 2024. Additionally, the MTCA launched a Large Taxpayer Office, aimed at providing a specialised, holistic service to entities and individuals who meet specific eligibility criteria. Furthermore, the MTCA released Version 4.7 of the DAC2 guidelines, updating criteria for financial institutions, investment entities, and undocumented accounts in automatic exchange procedures.
In the financial regulation sphere, on the 16th April 2025, the Malta Financial Services Authority (MFSA) responded to an ECJ ruling by revising rules for credit institutions acting as tied insurance intermediaries. The ECJ’s decision has licensing implications for certain entities which are now being deemed to be carrying out insurance distribution activities in Malta. Furthermore, the MFSA published a Circular issued for fund managers and recognised persons on financial documentation submission protocols.
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