Budget 2027: what the new fees and cuts mean for non-EU workers

The Budget speech of 26 October 2026 made a non-EU worker more expensive for the employer and a little poorer for the worker. None of it is law yet; legal notices follow. This is what was announced, who pays, and what to do about it. Figures are from KPMG’s summary and MaltaToday’s report of the speech; the official text was not readable by us at the time of writing. How we source, date and correct these guides is on its own page.

The employer’s bill

• First permit: €600 becomes €800 per person.
• Infrastructure contribution: a new €400 a year, on new applications and on every renewal. MaltaToday reports minors are exempt. KPMG does not mention exemptions.
• Renewal fee: today €150 a year. Neither summary gives a new renewal fee; MaltaToday says many Identità fees will rise without detail. Check Identità’s fee page before you plan. The renewal rules are on their own page.

That is €1,200 for the employer in year one and at least €550 a year after. The law has not changed on who pays: the employer, to Identità. An employer who deducts any of it from your salary, or asks you to “share the cost”, is in breach. Keep the payslip.

The worker’s losses

• Free public transport from January 2027 is retained for Maltese citizens, EU citizens resident in Malta and long-term residents. Other non-EU residents pay the fare: €2.00 a trip in winter, €2.50 in summer, with the Tallinja card. MaltaToday frames it as five years’ residence; KPMG as long-term resident status. The two overlap but are not identical; the legal notice will settle it. The bus, the Tallinja card and driving have their own page.
• Free childcare from 2027, same groups. Children already enrolled keep it until they no longer qualify.
• Atypical-hours in-work benefit only for citizens, EU citizens and long-term residents.
• Driving: a non-EU licence can be used for 12 months from entry, and the 12 months do not restart when you leave and come back. After that, an administrative charge of €83 a month applies to Category B and B1 licence holders issued or renewed from the relevant date. The summaries disagree on who is exempt: KPMG lists EU and EEA citizens, long-term residents and spouses, UK, Australian and UAE citizens, and people whose permit is for a driving job; MaltaToday mentions only the driving-job exemption. Expect the legal notice to decide.

What stays

• The Super Bonus of up to €1,000, non-taxable, based on 2025 income of at least €12,000, with no non-EU exclusion in either summary.
• Income tax bands and social security as on the salaries guide.
• The minimum wage mechanism and the cost-of-living increase.

What to do

1. Count the bus. Twenty working days of commuting at €2.00 each way is €80 a month in winter. Put it in the budget from January 2027.
2. Aim at long-term residence. Five years of continuous legal residence, the I Belong course and a Maltese test at MQF level 2, €500. It is now the line between keeping benefits and losing them. The long-term residence requirements are on their own page.
3. Decide about driving. €83 a month is €996 a year. For most people a Tallinja card and the occasional taxi cost less. If your job is driving, your permit exempts you under both summaries.
4. Watch the legal notices. The policy tracker on this site is updated when they are published.

What the employer will say

“Fees went up, we need you to contribute.” The answer is no, and the law is on your side. The government’s own words from November 2025: employers may not receive any financial compensation from workers in relation to recruitment or termination. A deduction for the permit is exactly that.

Check this at the source

• KPMG, Malta Budget 2027 highlights. https://kpmg.com/mt/en/insights/2026/10/malta-budget-2027.html
• MaltaToday, 26 October 2026. https://www.maltatoday.com.mt/news/budget-2027/145287/budget_2027__more_fees_less_benefits_for_thirdcountry_nationals
• Identità, current fees. https://identita.gov.mt/working-residing-in-malta/