Malta to cut tax in a bid to increase fertility rate...

Malta’s 2026 budget introduces significant income tax cuts for parents to combat the country’s declining fertility rate, Finance Minister Clyde Caruana announced Monday. The plan widens tax bands over 2026–2028, raising the tax-free income threshold from €13,000 to €14,500 next year, and up to €18,000 by 2028. All parents will benefit, with larger cuts for families with two or more children, saving an average of €2,400 annually. The measure, costing €160 million yearly, will support 68,000 families, with Caruana saying it effectively helps cover part of families’ home loan burdens.

Monday, 27 October, 2025