Key Moments:
- Malta’s draft 2026 Budget forecasts tax revenue rising to €7.8 billion, up from €7.3 billion the prior year
- The government has allocated €400,000 for the Malta iGaming Incubator and €4 million for new esports initiatives
- A new indirect tax framework for value-adding sectors, including gaming, will be introduced alongside major incentives for enterprises
Fiscal Strategy Aims at Dynamic Economic Growth
Malta’s proposed 2026 Budget intends to deliver enhanced fiscal support to strategic sectors such as iGaming and technology. Moreover, it reinforces the nation’s commitment to attracting international investment and bolstering economic growth. The draft, presented by Prime Minister Robert Abela and Finance Minister Clyde Caruana, outlines ambitious measures geared toward digital innovation, gaming, and tech-driven enterprise competitiveness.
Financial projections anticipate tax revenues of €7.8 billion for 2026, surpassing the previous year’s €7.3 billion. The key revenue streams include €3.5 billion from income tax, €1.84 billion from social security contributions, and €1.69 billion from VAT. Additionally, €473 million is forecasted from licenses, taxes, and fines, which includes €67 million generated from gaming taxes administered by the Malta Gaming Authority (MGA).
The government is targeting a gross domestic product increase of around 3%, notably outpacing the EU average of 1%.
“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.”
– Prime Minister Robert Abela
Government Investment in iGaming and Esports
Key allocations in the 2026 Budget underline Malta’s intention to maintain its leadership in the gaming sector. The Malta iGaming Incubator is set to receive €400,000, while new esports initiatives have an earmarked budget of €4 million. Further, €900,000 has been assigned to support Maltese enterprises in developing proprietary intellectual property.
Reflecting the ongoing impact of the MGA, the authority reported revenue of €83 million last year and concluded the period with a €71 million surplus after operating expenses.
The Budget also introduces an indirect tax framework customized for high-value sectors, such as gaming, and launches the European Digital Innovation Hub. This hub will provide small and medium-sized enterprises and startups access to resources like artificial intelligence, high-performance computing, and cloud technologies.
| Initiative | Budget Allocation (€) |
|---|---|
| Malta iGaming Incubator | 400,000 |
| Esports Projects | 4,000,000 |
| IP Development Support | 900,000 |
Business Ecosystem Strengthened Through Incentives
The proposed Budget details a suite of enterprise-focused incentives designed to advance the business environment in Malta. These include reduced duty rates, training vouchers, and advisory grants to back family businesses. Enterprises can claim up to 50% reimbursement on pre-booked expenses, capped at €300,000.
Tax credit enhancements feature prominently: the Micro Invest Scheme offers tax credits up to €65,000 in Malta and €85,000 in Gozo. Moreover, a 60% investment tax credit over four years applies to qualifying investments in machinery, IT, and cybersecurity.
Additional initiatives include a government pledge to subsidize 65% of wage increases for two years, limited to €780 per employee. Cooperatives are granted relief from audited tax submissions, and there are fresh incentives for sectors such as biotechnology, light industry, and pharmaceuticals.
“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.”
– Finance Minister Clyde Caruana
Outlook for Malta’s iGaming and Digital Sectors
With substantial investment channels directed towards iGaming, esports, and technology-driven businesses, Malta’s 2026 Budget demonstrates a clear strategy for retaining its edge as a hub of digital innovation and sustaining its role as a leader within the European gaming landscape.
- Author
Daniel Williams
