No stamp duty for elderly downsizing property, self-employed tax cuts

Speaking at a mass rally in Mellieħa, Prime Minister Robert Abela, announced new proposals targeting elderly homeowners and self-employed workers, while outlining a wider package focused on families, quality of life and economic stability.
Elderly people who sell their home to buy a smaller property would no longer pay stamp duty and would be treated as first-time buyers, addressing a gap that had left them out of previous schemes. The proposal follows feedback gathered directly from elderly residents.
The measure forms part of the “Our Next Home” scheme, which would also cover families with more than one child and those who are separated or divorced, allowing savings of up to €15,000.
Self-employed workers are also set to benefit through the SMEBoost scheme. While employees pay 10% in social contributions and the self-employed 15%, a 5% cash grant would bring the effective rate in line, leaving between €630 and €1,450 more annually in workers’ pockets. Overall support is expected to exceed €100 million over five years, without affecting pensions.
The proposals reflect a broader shift towards quality of life, with a stronger emphasis on time for families.
With Malta now in a more comfortable financial position, the focus is moving beyond income alone to how people live their daily lives. Discussions with families and workers have consistently highlighted time as a key priority.
Plans also include discussions with stakeholders on remote working, flexible hours and compressed weeks, supported by incentives of up to €1,000 per employee for businesses that adopt such arrangements.
Economic strength underpins the package. Malta’s performance has been recognised by international institutions, while fiscal discipline remains key to maintaining stable public finances.
During past crises, including the pandemic, government intervention focused on stability, covering wages, deferring taxes and shielding households and businesses from external shocks such as rising energy prices.
Investment continues to drive growth, including a €150 million MedTech project expected to create 250 high-quality jobs locally.
Sport and mental wellbeing also feature prominently, supported by investment in infrastructure across sites including Gozo, Marsa, Pembroke and Ħal Far.
Measures include free swimming lessons for children, increased tax credits for extracurricular activities from €300 to €400, and a free membership scheme for youths.
An initiative developed by young people will see schools use digital tools to monitor BMI and promote healthier lifestyles, with referrals to specialists where necessary.
Mental health support is also expanding, with free check-ups and plans for a new hospital within the Mater Dei complex aimed at improving access and addressing stigma.
The rally also featured interventions by candidates, who highlighted measures targeting families, youth and businesses, alongside continued support during challenging periods.
Prime Minister Abela drew a sharp contrast with the Opposition, questioning the credibility of their proposals, particularly on taxation. He referred to remarks made earlier in the day by Adrian Delia, who presented the costing of a proposed tax cut, noting that the figures do not add up.
A tax reduction affecting around 300,000 workers, with a minimum saving of €1,200 annually, was said to cost between €110 million and €130 million. However, basic calculations place the figure closer to €360 million, with Finance Minister Clyde Caruana indicating it would be nearer €400 million.
Such discrepancies, he said, raise serious questions about competence, warning that errors of this scale undermine credibility when managing a national budget worth billions.
He added that proposals built on incorrect figures would not withstand scrutiny by the European Commission, risking rejection and leaving promises unfulfilled.
He also criticised proposals that would see workers commuting offshore, arguing that the focus should remain on creating quality jobs in Malta.
Describing the upcoming election as sensitive Prime Minister Abela appealed for support, insisting that only measures which can be realistically achieved are being promised.The approach is rooted in responsibility and experience, noting that in some cases the government has delivered more than originally pledged.
The choice facing voters, he said, ultimately comes down to one thing… competence.