During the presentation of Malta’s 2026 Budget, the government announced plans to explore the introduction of a new indirect tax on the gaming industry and other value-adding sectors.
Currently, Maltese operators are subject to a 5% direct Gaming Tax on revenue generated from Malta-based players. Indirect or consumption taxes in the country include value-added tax (VAT) and excise taxes, commonly known as ‘sin taxes’.
For 2026, the government projects gaming tax revenue to reach €67 million, up from an estimated €65 million this year. Overall tax revenue is expected to total €7.8 billion, primarily driven by income tax (€3.5bn), social security contributions (€1.84bn), and VAT (€1.69bn).
Malta’s GDP growth is forecast at around 3%, outperforming the EU average of 1%. The government has allocated €400,000 to the Malta iGaming Incubator, €4 million to esports projects, and €900,000 to support Maltese businesses in developing intellectual property.
The budget also includes a range of enterprise and family business incentives, such as:
- Lower duty rates, training vouchers, and advisory grants for family businesses.
- 50% reimbursement of pre-booked expenditure (up to €300,000) for enterprise support.
- Increased tax credits under the Micro Invest Scheme, up to €65,000 in Malta and €85,000 in Gozo.
- An Investment Tax Credit of 60% on qualifying investments over four years, applicable to machinery, IT, and cybersecurity.
Finance Minister, Clyde Caruana stated:
This budget reinforces Malta’s commitment to sustainable growth by investing in innovation, technology, and skills. We are shaping an economy that rewards enterprise and creativity — from digital gaming to biotechnology, while ensuring fiscal stability and competitiveness across all sectors.
Meanwhile, the Malta Gaming Authority (MGA) has introduced a new online Self-Assessment Tool to promote responsible gambling. Available in both English and Maltese, the free and anonymous tool helps players evaluate their gambling habits and identify risky behaviour patterns.
