Overview
On the 11th of October 2021, the Malta Budget 2022 speech was delivered by the Government of Malta. As the country seeks to stimulate economic activity following an impactful COVID-19 hit on different sectors, a number of new measures are to be implemented to support various social & economic segments.
This year’s Budget plans as announced by the Minister of Finance were focused on various elements including property and infrastructure investments, tax benefits, and environmental safeguarding. With plans to make public transport free for all cardholders and tax reduction benefit plans for certain businesses suffering a COVID-19 impact, it is safe to say that the 2022 Budget will affect a lot of people.
How will the new Budget 2022 measures impact you and your business? Our comprehensive Firstbridge Budget 2022 overview offers a look into the salient points and implications of the new Budget document that different individuals and businesses alike ought to be familiar with.
Download a copy of Firstbridge Overview of the budget here:
Firstbridge Budget 2022
Social Measures
Part-Time Tax Rates
The tax rate on part-time income reduced to 10%.
COLA Rate
COLA adjustment of €1.75 a week.
Tax Brackets
Tax brackets will be adjusted to support Pension income of a maximum of €14,318 will not be taxed.
Public Transport
Free public transport to Maltese residents as of October 2022.
Business Measures
Start-Ups
Start-ups will be provided with a ‘start-up visa’.Malta Enterprise will work with Community Malta to develop the programme, to attract non-EU entrepreneurs.
Family Business Inheritors
Family business inheritors will only pay 1.5% in stamp duty (rather than 5%).
Capital Allowances 2020/2021
Companies who are yet to use their capital allowances for 2020 or 2021 due to pandemic-induced losses will be eligible for a tax reduction benefit.
Artist Tax
Artists will benefit from tax incentives at a rate of 7.5%. There will also be funds to help organisers within the sector hit by COVID-19.
Property & Real Estate
First Time Buyers Scheme
The incentives for first time buyers in Gozo will be doubled to €30,000.
Roadworks
The Government will be allocating €470m in spendings on industrial estates while continuing road building. Regenerative work will also be done to the Grand Harbour.
Property Tax Benefits
Tax benefits for private property that is rented out as affordable housing will be made available, while any such property sold to tenants will not be taxed.
Home Ownership Schemes
There will be schemes to encourage homeownership, including equity sharing schemes and home insurance schemes.
Download a copy of Firstbridge Overview of the budget here: Firstbridge Budget 2022
The information provided in this document is based on publicly available information released on the 11th of October, 2021. Should you find this overview to be of interest to you or your company, please feel free to contact us at [email protected]
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