Malta’s 2026 budget introduced a range of business incentives, including generous tax credits for new investments and R&D, accelerated write-offs for technology upgrades, enhanced micro-investment support for SMEs, and a reduced 1.5% duty rate for family business transfers.
Regfollower Desk
Malta’s Minister for Finance presented the 2026 budget to parliament on 27 October 2025. The 2026 budget includes various tax measures for enhancing investment incentives for businesses.
New investor tax credit
A 60% investment tax credit is available for new investments made within the next two years. This credit, spread over four years, applies to the purchase of items such as machinery, equipment, IT software, and cybersecurity tools. This credit is spread over a four-year period.
Research and innovation tax benefits
Companies investing in research and innovation can claim a significant 175% tax deduction on qualifying expenses to foster consistent investment in technology and innovation.
Accelerated investment write-offs
An accelerated depreciation plan is being proposed for businesses looking to upgrade their technology. This allows companies to write off the cost of investments in areas such as AI, digitalisation, automation, and cybersecurity over just two years.
Micro investment scheme for SMEs
A Micro Invest Scheme has been introduced, with the maximum tax credit raised to EUR 65,000 for businesses in Malta and EUR 85,000 for those in Gozo.
Reduced duty rate for business transfers
Finally, the reduced duty rate of 1.5% for transferring a business between family members has been extended, making it easier to keep businesses within the family.
