Malta Economic Outlook 2023 

Despite some turbulence in the global economy, Malta is on track to achieve strong growth rates over the next few years. Let’s take a closer look at what’s in store for the Maltese economy in 2023.

  • Inflation to increase by 5.7% after subsidies,   
  • Economic growth is expected to be 3.5% in real terms and 7.3% in nominal terms  
  • Public debt as a proportion of GDP stands at 57%, which is below the EU debt criteria of 60%  
  • Deficit is expected to hit below 5.5%  
  • An expected increase in employment of 4%  

Social Measures 

  • Cost of living adjustment (COLA) Eur 9.90 per week or Eur 514.80 per year  
  • Pensions to increase to Eur 12.50 inclusive of COLA  
  • Increase in students’ stipends by Eur 50 annually  
  • Children’s allowance to increase by Eur 90 per Child  

Grants & Incentives 

  • Eur 10,000 for first-time buyers who purchase a residential property not exceeding Eur500,000. This will apply to all property purchases on 1st January 2022 onwards.  
  • Incentive to buy an electric car increased to Eur 12,000 if the old car is scrapped  
  • Plan on increasing further incentives for aircraft registrations  
  • Local businesses investing in digital projects will get up to 50% of their investment back up to a maximum of Eur 100,000  
  • The establishment ‘Start up Malta’ agency aimed at attracting newly established businesses in Malta  

Main Fiscal measures  

  • Increase in limit of tax-exempt pensions to Eur 14,968   
  • Tax refund of Eur 60 – 140 by way of cheque  
  • Authors and Co-Authors earning royalties from their work will benefit from a further reduced rate of 7.5% from 15%  
  • Scholarships and tax credits for Master’s and Doctorate courses to be extended  
  • Increase in tax rebates for parents sending their children to sports, arts or cultural classes to Eur 300 from Eur 100  
  • Plan to revise and strengthen tax residency schemes such as the Global Residence Programme and The Malta Retirement Programme   
  • Extension of reduced rate of stamp duty of 1.5% from 5% on inter-vivos transfer of family business