The Government of Malta has outlined new fiscal measures and projects to diversify the performance and economic output of ‘value-adding’ industries such as iGaming.
In its draft Budget 2026 proposal, the Labour Party of Malta detailed new economic initiatives proposed by Prime Minister Robert Abela and Finance Minister Clyde Caruana.
For 2025, consolidated accounts show Malta’s government projecting tax income of €7.3bn, with additional non-tax income of €681m, bringing total recurrent income to €8bn.
The 2026 Budget projects that tax income will increase to around €7.8bn, driven primarily by revenues from income tax (€3.5bn), followed by social security contributions (€1.84bn) and VAT collections (€1.69bn).
Additional inflows will derive from customs and excise duties (€326m) and licences, taxes and fines (€473m), which include a €67m contribution from gaming taxes administered by the Malta Gaming Authority (MGA).
Overall, in its economic assessment, the Labour government remains positive about the long-term outlook for Malta’s economy, maintaining a GDP growth rate of around 3% — well above the EU average of approximately 0.9 to 1.1%
PM Abela commented: “We are building an economy that looks beyond short-term gains. Malta’s strength lies in its ability to adapt and invest — from digital innovation to clean energy and creative industries. The 2026 Budget reflects our confidence in a stable, diversified and competitive future for the Maltese economy.”
Despite a challenging global environment, this government will prioritise sustainable growth, strong employment and investment in high-value industries. Our focus is on quality growth anchored in innovation, skills, and fiscal discipline.”
A breakdown of income generated through the MGA shows that the government collected €65m in 2025, a figure expected to be maintained in 2026.
The government continues to support the iGaming sector by funding gaming-related programmes such as the Malta iGaming Incubator (budgeted expenditure of €400,000) and the new policy for eSports ventures (€4m). Other programmes include €900,000 in funding to support intellectual property rights developed by Maltese businesses.
These programmes are overseen by the Malta Gaming Authority, which generated €83m in income and €14m in expenditure confirming the Authority as a major net contributor to public finances, with an estimated €71m surplus.
iGaming to access new enterprise schemes
Beyond gaming, the Budget sets out a range of new measures to strengthen Malta’s wider business environment. The government will develop a reliable indirect tax framework for value-adding industries such as gaming, while launching the European Digital Innovation Hub to provide SMEs and start-ups with free access to AI, high-performance computing, and cloud services.
Existing schemes supporting family business transfers will be extended to include reduced duty rates, advisory grants, and training vouchers, while a new scheme will allow self-employed and small enterprises to pre-book enterprise expenditures, with the Government covering up to 50% of costs, capped at €300,000.
The Budget also announces the development of a modern SME scheme for companies in pharmaceuticals, light industry, innovation and biotechnology, as well as expanded tax credits under the Micro Invest Scheme increased to €65,000 in Malta and €85,000 in Gozo.
A new Investment Tax Credit will offer 60% of qualifying investment value over four years, focused on machinery, IT, tools, and cybersecurity.
Complementary measures include a new wage-support mechanism, where the Government will finance 65% of wage increases for two years (up to €780 annually), and exemptions for cooperatives from submitting audited accounts for tax purposes.
Finally, Malta will support new economic initiatives aimed at strengthening digital entertainment and technology sectors, including the expansion of iGaming, esports, and AI-driven enterprise services, as part of its strategy to attract high-value international investment and talent.
Finance Minister Clyde Caruana commented on the government’s direction: “This Budget continues Malta’s commitment to sustainable growth by investing in innovation, technology and skills. We are building an economy that rewards enterprise and creativity from digital gaming to biotechnology while ensuring fiscal stability and competitiveness across all sectors.”
