Since the start of the COVID-19 pandemic, the Maltese Government launched €900 million worth of fiscal incentives to stimulate the economy and mitigate as much as possible the negative impact of this pandemic on the local economy.   The incentives are primarily aimed at reducing business costs and to incentivise consumption in view of the reduced influx of tourists. 


The following are the incentives announced on the 8 June 2020:


  • Extension of COVID-19 Wage Supplement until the end of September 2020. As from 1 July 2020, the benefit rate of €800 for full-timers and €500 for part-timers will be maintained in areas involved with tourist accommodation, travel agencies, language schools, event organisation and air transport.  Those who up to June 2020 were assisted under Annex A but do not feature in the categories listed above shall be kept within the parameters of Annex A but will however move to a tapered aid of €600 for full-timers and €375 for part-timers. Students and pensioners who are in employment shall fall within this new category.  Personal services and other businesses/self-employed who depend on local consumption will benefit from the partial supplement under Annex B. Companies and self-employed who were being assisted under the partial supplement (Annex B) will retain this aid until 30 September 2020;


  • A grant of up to €2,500 to cover rental costs  for businesses eligible for a wage supplement (click here for further information);



  • Business eligible for the Micro Invest Credit may opt to receive up to 30% of the Micro Invest tax credits during 2020 in form of a grant which is however capped at €2,000 or €2,500 for undertakings operating in Gozo and for female-owned undertakings;




  • Further funds will be allocated to the Skills Development Scheme for the benefit of businesses employing less than 50 employees. This will provide assistance to businesses wishing to further develop the skills of their employees;



  • Reduction of stamp duty due upon the purchase of immovable property by the end of the current year. The stamp duty rate will be reduced from 5% to 1.5% on contracts to be signed between 9 June 2020 and 31 March 2021;


  • The final tax due upon the sale of immovable property under development or those contracts made between 1 June 2020 and March 31 March 2021 will be reduced from 8% to 5%;


  • The first time buyers scheme will be modified for all contracts taking place from 9 June 2020, unless a person has benefitted from the scheme since 2013;


  • €100 worth of vouchers per person aged 16 and over that can be used in a licensed accommodation, restaurant or business that had to close during the pandemic;


  • With effect from 15 June 2020, petrol and diesel prices will be reduced by 7 cents per litre;


  • The tax payment deferral scheme will be retained until September 2020, with the deferred payments to be settled over a period of 12 months. As from 1 July 2020 no deferral will be allowed for the settlement of FSS tax and social security contributions withheld from wages and salaries;


  • Refund of 33% in port charges for those ships that bring cargo to our country in order to support the supply chains of our economy;


  • A 10% refund will also be given on container discharge fees for import and export but not transhipment;


  • Support for export promotion. A budget of €400,000 has been allocated to Trade Malta to reimburse half of the costs involved, with a maximum of €10,000 for local businesses to invest in campaigns aimed at foreign markets;


  • Up to 80% refund of the costs incurred by businesses participating in international fairs which were cancelled;


  • A full refund of trade licence / permits paid during 2020 by businesses that were forced to close during the pandemic;


  • A new underwriting facility for private enterprise bonds will be set up through the Malta Development Bank;


  • €5 million to help Maltese and Gozitan businesses promote themselves and help will be provided for the production of local produce;


  • Improvement in the in-work benefit and a special supplement of €250 will be given for each family that benefits from the same scheme;


  • A grant (capped at €2,000 per couple) to fund certain forfeited deposits on wedding expenses;


  • Financial assistance to old people’s homes.


Most of the incentives are managed by Malta Enterprise and details of the incentives are still to be published.