At a glance
- Presented on 26 October 2026 by Finance Minister Clyde Caruana
- All existing incentive schemes renewed for 2027, including property purchase, renovation and renewable energy
- New VAT reverse charge for construction supplies between businesses
- Tighter rules on sales of airspace so tax reflects the real value
- Short-let eco-contribution of €10 a night (max €80) from 1 January 2027
- Non-EU work permit fee up from €600 to €800, plus a new €400 yearly contribution
The headline: schemes carry on into 2027
Several property incentives were due to end on 31 December 2026, including the grants and stamp-duty breaks for buying and restoring homes in Urban Conservation Areas (UCAs) or long-vacant properties. The Budget speech said all existing government incentive schemes will be renewed for 2027, naming schemes for buying and renovating residential property and for renewable energy.
The detailed terms (amounts, dates and conditions) normally follow in legal notices and new scheme guidelines over the coming weeks. Until they're published, don't assume the 2027 versions will be identical to the 2026 ones.
Schemes to watch for 2027 calls
- First-time buyers of UCA or vacant property: €15,000 in Malta, €40,000 in Gozo under the 2026 scheme. See our guide to this grant.
- Restoration and finishing grant for UCA, vacant or traditional-style homes: 18% and/or 10% of costs, up to €54,000 per property under the 2025–2026 scheme.
- Irrestawra Darek façade restoration (Planning Authority). See our Irrestawra Darek guide.
- Irrinova Darek energy renovation (BCA), and the REWS solar panel and battery grants.
VAT reverse charge in construction
A new mandatory reverse charge will apply to construction-related supplies between businesses. Instead of the supplier charging VAT and paying it over, the business customer accounts for the VAT itself and, where it's allowed, deducts it. The aim is to stop suppliers collecting VAT and never paying it, and to stop fake refund claims.
If you're a homeowner paying a contractor privately, this is aimed at business-to-business supplies, so your invoices should not change. If you're a developer, contractor or subcontractor, expect changes to how you invoice and file VAT once the detailed rules and start date are published. Speak to your accountant.
Sales of airspace
The government will tighten the rules on sales of airspace development rights, where tax can currently be worked out on only part of the final property's value. Expect fuller disclosure of the total price agreed, stronger valuation checks and tax based on the deal's real substance. The Budget says this will apply going forward, after consultation.
Short lets: eco-contribution from 1 January 2027
Tourists aged over 18 will pay €10 per night in short-let apartments, capped at €80, and €8 per night in hotels and other collective accommodation, capped at €64. If you run a holiday let, also check our guide to the 2026 short-let rules.
Hiring non-EU workers costs more
The fee for a new non-EU work permit goes up from €600 to €800, and a new €400 annual infrastructure contribution applies to new and renewed permits. Construction relies heavily on non-EU workers, so expect some of this to show up in contractors' prices.
What this means if you're planning works
- Buying an old or UCA property? Help should continue in 2027, but check the new terms before you sign a promise of sale.
- Planning a restoration? Keep every invoice and photo. Grant claims depend on them.
- Getting quotes? Labour costs may creep up. Fix prices in writing where you can.
How we help
We keep track of grant calls and deadlines, and plan works so they fit the scheme rules, with the documents and photos you'll need for the claim.
This guide is general information based on the Budget speech and published highlights, not tax or legal advice. Budget measures only become law through legislation, so check the final rules with your accountant or notary.
Frequently asked questions
Did Budget 2027 extend the property grants?
The Budget said all existing incentive schemes will be renewed for 2027, including property purchase and renovation schemes. Detailed terms will follow.
What is the construction VAT reverse charge?
For construction-related supplies between businesses, the customer will account for the VAT instead of the supplier. It doesn't change private homeowners' invoices.
