Malta Gives €18,500 Tax Relief to Couples with Two Kids

Valletta, Malta – The Maltese government announced that from 2026 married taxpayers with two or more children will receive a tax‑free allowance of €18,500, roughly Rp358 million annually. The measure is part of a fiscal initiative aimed at raising the fertility rate, which stood at only 1.06 children per woman in 2023.

Malta’s fertility rate is among the lowest in Europe, while 24 % of native residents are over 65 and expatriates comprise two‑thirds of the population. Authorities hope the tax incentive will encourage families to have at least two children and mitigate demographic decline.

If the policy succeeds, the allowance will increase to €30,000 in 2028 and remain in effect until the dependent child turns 23. The scheme could affect long‑term tax revenues and improve Malta’s age‑structure balance.