In 2025, Malta offers a wide range of tax benefits that many aren’t even aware of – from sports courses for children to subsidies for start-up investments and electric vehicles. If you prepare your tax return properly, you can save real money. We show you the top 10 tax bonuses you should know – clearly explained and with all important links.
1. Child Sports Bonus: up to €100 deduction per child
Parents who pay course or club fees for children under 16 can deduct up to €100 annually from their taxable income. Receipts are sufficient; the form is available from SportMalta or online.[1]
2. Arts & Creativity: additional €300 per child
Since 2025, the tax authorities reward recognized dance, music, theater, or design courses with a deduction of up to €300 per child under 16 – combinable with the sports bonus.[2]
3. First-time Buyer Privilege: 0% stamp duty on the first €200,000
Those buying their very first residential property by December 31, 2025, save stamp duty on the first €200,000 of the purchase price – equating to up to €10,000 cash savings.[3]
4. Second-time Buyer Refund: reimbursement on the first €86,000
Even those moving from a starter to a family home can benefit: when changing the primary residence, the state reimburses the Duty on Documents paid on the first €86,000, if the application is submitted within six months.[4]
5. Mini-income up to €11,620? Completely tax-free
The Deduction (Income from Employment) Rules 2024 (LN 1/2024) raise the threshold up to which earned income can be reduced to €0 tax via a flat-rate deduction to €11,620 (singles & parents) – especially relevant for minimum wage earners.[5]
6. Notional Interest Deduction (NID): Treat equity like debt
Companies may calculate a notional interest on their equity and deduct it as a business expense. Result: an effective corporate tax rate well below 35%, without aggressive debt financing.[6]
7. Patent Box: up to 95% tax exemption on IP income
Under the Patent Box Regime (Deduction) Rules 2019, income from self-developed intellectual property can be made up to 95% tax-free. With full nexus compliance, the effective tax rate drops to as low as 1.75%.[7]
8. Micro Invest: 45% tax credit – Gozo bonus 65%
Self-employed and SMEs (≤ 50 employees, ≤ €10 million revenue) receive up to 45% tax credit on investments or wage costs; businesses in Gozo, family businesses, or those with > 50% female ownership can receive up to 65%. Cap: €50,000 (or €70,000) over three years.[8]
9. Seed Investment Scheme: 35% tax credit for start-up shares
Individuals or companies investing with equity in young Maltese start-ups for at least three years receive a 35% tax credit, up to €750,000 per start-up. LN 45/2024 extends the scheme to 2026.[5]
10. E-cars: Grant + €0 registration tax + 5 years tax-free driving
• 2025 Grant: up to €8,000 for cars (M1) with a list price of up to €40,000, or €11,000 under the 2024 scheme valid until the end of the year.
• Tax exemption: E-vehicles are exempt from the annual road license fee for five years and pay €0 registration tax.[9]
Conclusion
Whether you’re a family, entrepreneur, homebuyer, or car enthusiast – Malta’s 2025 tax system has something for everyone. A quick consultation with a tax advisor can be very worthwhile. It’s best to check now which bonuses you can take advantage of – before the next tax return is due!
