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Malta announces Budget 2015

20 Nov 2014

The Minister of Finance presented the Budget for 2015 in November 2014. The Budget contains a number of fiscal measures aimed at ensuring public finance sustainability, enhancing competiveness and raising potential output. Taxand Malta highlights the key tax measures featured.

Income tax measures

  • The personal income tax rate for individuals earning up to €60,000 has been reduced from 29% to 25%
  • Employees earning the minimum wage will not be subject to tax


  • The Government will introduce systems enabling non-EU tourists to benefit from VAT refunds before leaving Malta
  • The exemption from registration with the VAT Department for taxable persons with a turnover of less than €7,000 has been removed 

Duty on documents and transfers

  • Stamp duty on insurance policies other than life insurances will increase by 1%
  • The one-year exemption from the payment of duty on the first €150,000 of the value of immovable property granted to first time buyers is being extended by six months up to 30 June 2015
  • No duty will apply upon the division of immovable property between partners 

Other measures

  • As from March 2015, utility rates for industry will be reduced by 25% in the case of electricity and 5% in the case of water
  • An independent arbitration office for financial services will be created to address complaints made to the Malta Financial Services Authority

Discover more: Malta announces Budget 2015

Your Taxand contact for further queries is:
Walter Cutajar
T. +356 2730 0045


Taxand's Take

Although most of the measures affect individuals and consumption rather than businesses, the economic and financial situation of the country should be encouraging for foreign direct investment and international business setting up in Malta especially if Malta continues to address issues related to competitiveness and bureaucracy.

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