Archive · 28 Oct 2025
Malta Announces Tax Cuts to Boost Declining Birth Rate
Malta is worried because not enough babies are being born.
The government is trying to fix this by giving parents of two or more children a break on their taxes.
Starting in 2026, parents will not have to pay taxes on a portion of their income.
This amount will increase over time.
The goal is to encourage families to have more children and stop the population from shrinking.
The policy is similar to one in Poland.
Malta's native population is aging, and the birth rate is very low compared to other countries.
Malta's government announced tax cuts for parents to address the low birth rate.
The policy will begin in 2026, exempting parents from income tax on a portion of their earnings.
The tax-free income will increase over time, benefiting parents of two or more children.
Malta had the lowest fertility rate in the EU in 2023, according to Eurostat.
The scheme is similar to one already implemented in Poland.
- Who
- The Maltese government
- What
- Announced tax cuts for parents to boost the birth rate.
- When
- Announced Monday, with cuts starting in 2026.
- Where
- Malta
- Why
- To counter the country's demographic decline and low fertility rate.
- Policy
- Tax cuts for parents of two or more children
- Starting Year
- 2026
- Initial Tax-Free Income
- €18,500 ($21,575) per parent
- Tax-Free Income by 2028
- €30,000 per parent
- Eligibility Duration
- Until children are 23
- Fertility Rate (2023)
- 1.06 (lowest in EU)
- Native Population
- 406,000