On 27th October 2025, Finance Minister Hon. Clyde Caruana will be presenting the Malta Budget 2026.
The Minister highlighted the continued strength of Malta's economy, emphasizing its resilience despite global international difficulties. He noted that the jurisdiction recorded the highest economic growth within the European Union, with the real GDP having increased by 3.1% in the first half of 2025. This increase was mainly due to the increase in domestic spending and an increase in providing overseas services. The main drivers of this economic expansion were the digital and communication services sectors, which registered significant growth rates of 7.4% and 10.3%, respectively. Significant growth was also evident in the tourism sector, with an increase of 12.9%.
Projections indicate that the Maltese economy will expand by 4.1% in real terms during 2025, which represents a growth rate three times higher than that anticipated for the EU. Employment rate is expected to stabilise, and salaries should continue to increase, while the inflation rate should stabilise at 2.2%. The cost of living adjustment (COLA) for 2026 will be of €4.66 a week.
For a thorough analysis of the Malta Budget 2026 and its implications, we invite you to download our detailed Budget Review. This comprehensive document provides insights into key fiscal measures, economic projections, and their potential impact on your business. Should you need further information or clarification, please feel free to contact us at taxadvisory@bdo.com.mt.