Prime Minister Robert Abela highlighted that Budget 2026 will deliver an unprecedented measure — a larger tax cut for working parents. Speaking at Auberge de Castille, he said, “In Malta, we will have a middle class of parents with two or more children earning up to €30,000 each who, within three years, will no longer pay any tax.” He added that this means such families “will effectively be tax-free for almost a quarter of a century.”
The Prime Minister described this as part of a broader strategy to support families and the economy, noting that while Europe faces stagnation, “the Maltese and Gozitan people are benefiting from the best budget in history.” The €120 million social package will support those most in need, including single parents and pensioners, while students will receive a 15% stipend increase.
Abela also announced a €100 million fund to drive Malta’s digital and AI transformation, forming part of the upcoming Malta Vision 2050. Deputy Prime Minister Ian Borg and Finance Minister Clyde Caruana both highlighted the budget’s goal of long-term stability and resilience for Maltese families and businesses.
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