cONTINUE rEADING
Economic Outlook
- In line with the 2023 trend, the European Commission forecasts that Malta will continue to be at the forefront of the EU economic growth in 2024 and 2025. The EU economy expects an expansion of 1.0% in 2025 and 1.6% in 2026, in comparison to the expected 4.9% and 4.3% in Malta.
- The economy is projected to reach a GDP of €22.3 billion in 2024, with government revenues at €7.2 billion and expenditures at €7.8 billion. Government debt is anticipated to reach €11.1 billion, while interest payments are expected to rise to €263 million.
- Inflation is expected to decrease to 2.5% in 2024 and 2.1% in 2025. This is in line with regional trends across the Euro-Zone.
- Malta's employment rate was 81.3% in 2023, with the unemployment rate projected to be 3.5% in 2024. In August 2023, the monthly unemployment rate was 2.7%.
Cost of Living Adjustments and Wages
- The cost of living adjustment for 2025 will be of €5.24. Student stipends shall increase pro rata.
- There will be an €8 weekly increase, or €416 yearly increase, in pensions, including COLA.
- The national minimum wage will increase by €8.24 per week, reaching €221.78 per week, and will remain untaxable.
Other Fiscal Developments
- The reduced stamp duty rate of 1.5% on certain business transfers to descendants has been extended.
- Excise duty on certain beers and wines from small, independent Maltese breweries will be lowered, with the calculation method shifting from Plato degree to ABV%.
Interested in other topics announced in Malta Budget 2025?
Read our dedicated article on Tax savings, international tax policies, and incentives that benefit families and enterprises here.
Read our dedicated article on Property-related incentives, VAT refunds, and property development grants, appealing to homeowners, buyers, and developers here.
Read our dedicated article on Malta’s tech and environmental incentives, future goals, and labour law changes, attracting readers interested in sustainability, tech innovation, and Malta's 2050 vision here.
Alternatively, you can view and download the full Malta Budget for 2025 in PDF format here.
