Budget 2024

31 Oct 2023

2 min read

On the 30th October, Finance Minister Clyde Caruana delivered the budget speech and the below  are some of the highlights particularly those which have an impact on businesses and employment:

  • COLA has been set at €12.84 per week for 2024;
  • The national minimum wage will increase gradually, initially by 8% and then by a maximum of an additional €10 by 2027. The minimum wage as of 2024 will be €213.54 per week, inclusive of COLA;
  • Malta is developing measures and incentives to comply with EU and OECD regulations and maintain competitiveness on an international level;
  • The current full imputation tax system will be retained;
  • Duty exemptions for first-time buyers and partial stamp duty refunds for second-time buyers will be extended for another year;
  • Existing property schemes providing exemptions from income tax and duty on properties located in Urban Conservation Areas (UCA) or vacant properties constructed at least 20 years ago will continue;
  • A new Malta Business Registry portal will be launched to facilitate the filing of electronically signed documents;
  • The Seed Investment Scheme, providing tax credits to qualifying investors in start-up businesses, will be extended;
  • Various schemes and initiatives supporting business development, skills development, innovation, energy efficiency, and investment in the semiconductors and microchips industry will be extended;
  • The gaming industry’s regulatory framework will be strengthened, and the e-sports strategy will be implemented;
  • Duty on transfers of company shares and commercial tenements in intra-family donations will be subject to a reduced rate of 1.5%;
  • Efforts will be made to enhance the skills of foreign workers coming to Malta, and the cost of issuing new work permits for foreign workers will be increased;
  • Fiscal incentives for highly qualified expatriates will be consolidated and updated;
  • Laws will be aligned to simplify administrative obligations for companies under the Companies Act and the Merchant Shipping Act;
  • Changes will be made to the Merchant Shipping Act, and a long-term vision for the maritime industry will be established;
  • Implementation of a new superyacht policy will begin;
  • Efforts will be made to strengthen the aviation industry through additional investment, a new aviation policy, and the introduction of the Air Navigation Act;
  • There are plans to establish a Commercial Court with the aim of introducing the necessary framework to achieve judicial specialisation;
  • Tax refunds for persons earning less than €60,000 will be issued, with the refunds ranging from €60 to €140, depending upon the level of income.