What Will Change For Foreign Workers Living In Malta From January 2027?

Foreign workers living in Malta, particularly those from outside the European Union, will face several changes from January 2027 following measures announced in Budget 2027.

Finance Minister Clyde Caruana explained that the changes aim to ensure foreign nationals contribute more towards Malta's infrastructure and public services.

So, what exactly is changing?

1. Free Public Transport

Most non-EU nationals will no longer qualify for free public transport. The benefit will remain available to Maltese citizens, EU citizens residing in Malta and long-term residents.

2. Higher Work Permit Fees

New work permit applications for non-EU workers will increase from €600 to €800.

An additional €400 annual infrastructure fee will also apply to new applications and renewals, bringing the total for a new application to €1,200.

3. New Driving Licence Charges

Certain non-EU nationals will face a new €83 monthly administrative fee for category B and B1 driving licences issued or renewed from January 2027.

Exemptions include long-term residents, EU and EEA nationals, and several other categories.

4. Changes To Free Childcare

Free childcare will remain available to Maltese citizens, resident EU citizens and long-term residents.

However, families already using the service will continue benefiting until their children are no longer eligible.

5. Changes To Employment Benefits

The Government's atypical work payment will become available only to Maltese citizens, resident EU citizens and long-term residents.

According to Caruana, Malta's foreign workforce increased by approximately 106,000 people between 2015 and 2025.

The Government says the measures are intended to address growing pressure on infrastructure while encouraging an economic model that depends less on continually increasing the workforce.

#MaltaDaily