Budget 2027 for Third-Country Nationals: Every New Fee and Lost Benefit

1. Work permit fees and the €400 infrastructure contribution

The contribution applies to new applicants and to TCNs already in Malta when they renew. Minors are exempt. Other Identità permit fees are also due to rise, but the Budget did not give figures. Together, the permit changes are expected to raise about €80 million.

Who pays is not set out in the Budget. In practice the application fee is usually covered by the employer; the €400 contribution is described as a charge on the worker. Employers should check their contracts and budget for the higher cost of new hires. See our employer compliance guide.

2. Free public transport ends for TCNs

Free bus travel with a personalised Tallinja card was introduced in October 2022 for all residents. From 2027 it is limited to Maltese and Gozitan citizens, resident EU citizens and long-term residents. Other TCNs will pay standard fares; regular commuters have been quoted around €33 a month.

3. Free childcare for new registrations

The Free Childcare Scheme (since 2014) will no longer accept new registrations from TCN families without long-term residence. Families already using the scheme keep it until their children outgrow it. A new child registered in 2027 will be charged the centre's private rate, which varies widely by centre and hours. Check your entitlement today with our Free Childcare Calculator.

4. Atypical working hours cheque

The yearly cheque for workers with atypical hours (night, weekend and shift work; reported at about €150) will only be paid to Maltese, EU citizens and long-term residents. Combined, the transport, childcare, licence and cheque changes are expected to save or raise about €46 million.

5. Driving: €83 a month and the 12-month rule

Two changes affect TCN drivers. First, a residence permit holder can drive on a non-EU licence for 12 months from arrival, and the period no longer restarts after a trip abroad. For people already living in Malta, the 12 months count from their last entry before 1 January 2027. After that, a Maltese or EU licence is needed.

Second, a €83 monthly administrative fee (about €996 a year) applies to Category B and B1 licences issued or renewed for TCNs from 2027. Reported exemptions:

• EU and EEA citizens
• Long-term residence permit holders and their spouses
• Citizens of the UK, Australia and the UAE
• People whose residence permit is for a driving job (e.g. drivers and couriers)

The licence will expire with the residence permit and cannot be renewed while charges are outstanding. How the fee is collected (monthly or upfront for the licence period) has not been published yet. For the regular Transport Malta licence fees see our driving licence guide.

Worked example: a two-earner TCN family

Two adults renew their single permits in 2027, both commute by bus, one drives for personal use, and they register a new baby at a childcare centre charging €400 a month.

Without the new child the extra cost is €2,588 a year, or about €216 a month. The €150 renewal fees are not included because they did not change.

What did not change

• Income tax rates and SSC rates are the same for everyone, including TCNs. The new 2027 family tax bands apply to parents regardless of nationality. See our Budget 2027 tax guide.
• The COLA increase (€6.41 a week) and the higher minimum wage (€239.85 a week) apply to all employees.
• Eligibility for the €1,000 Super Bonus has not been confirmed for TCNs: some reports say it is limited to Maltese, EU citizens and long-term residents. Wait for the official scheme rules.

Frequently Asked Questions