Malta Budget 2027:
what it means for
businesses going digital.

Most of what matters for a business going digital was said in two places: the ten economic measures Economy Minister Silvio Schembri presented on 29 October 2026, and the debate on his ministry’s 2027 estimates in Parliament on 10 November 2026. We read the reports from both and kept only the figures that more than one source confirms.

Two things are worth knowing before you read on. First, none of the new measures has published rules yet, so nobody can tell you today exactly which costs will count. Second, the schemes that already have rules, Digitalise your SME and Micro Invest, did not stop. If your project is ready, you do not need to wait for the budget measures to start.

This is the measure most businesses will feel. The government is setting aside €120 million for a tax credit of 60% on eligible investment in automation, artificial intelligence and digitalisation, with up to €15 million per business spread over four years (MaltaToday, Malta Independent). The stated target is to have it running by the end of 2026, and in Parliament on 10 November the minister said it would soon support businesses investing in digitalisation and automation (Times of Malta).

A tax credit is not cash in your bank. It lowers the tax your business owes, so it is worth most to a business that pays tax every year. Say a company invests €40,000 in an automated ordering and stock system. If all of it counted, the credit would be €24,000, taken off its tax over the years the rules allow. If the same company pays little tax, it may not be able to use the whole credit.

What we do not know yet: the official name, who runs it, which businesses can apply, which costs count (software, websites, hardware, training), whether you must apply before you spend, and what happens to credit you cannot use. Those details are still to be published. Our 60% tax credit guide tracks every confirmed point with its source, and we will add the official rules to it and to this page as soon as they are out.

The government wants 40% of businesses using AI within five years, under an updated national AI strategy with more than 80 measures to 2030 (Malta Independent). In Parliament the minister described the goal as businesses making practical use of AI, backed by training through AI for All, Skills Development and Get Qualified (Times of Malta, Lovin Malta). He also pointed to more than €100 million going into the digital sector in 2027, and a further €20 million in European funds for business transformation (TVM).

Practical use means AI doing a real job inside your business, not a chat window nobody opens. Think of replies to common enquiries drafted in seconds, quotes put together from your price list, bookings confirmed and reminded automatically, or invoices read and filed without retyping. These are the projects the new tax credit and the Digitalise your SME AI top-up are aimed at. Our AI automation page shows what this looks like for Malta businesses, and our AI grant guide covers the top-up of up to €100,000 that is open now.

The minister also invited people to a run of events in the coming weeks, including MedTech, the Global Semiconductor Conference, PlayCon and Tech Expo (Times of Malta, TVM). They are a good place to see what other firms are building before you decide on your own project.

1. Write down the manual work. List the jobs your team repeats every week: typing orders, chasing invoices, answering the same questions, booking by phone. This list is the start of any good automation or AI project, whatever scheme pays for it.
2. Turn it into a written specification and an itemised quote. Digitalise your SME asks for quotes or an Investment Proposal, and Micro Invest needs a signed agreement listing what software will do. Expect the 60% credit to ask for something similar.
3. Do not sign or pay too early. Digitalise your SME does not accept anything ordered or paid before the grant agreement. For the 60% credit the rule is not published, so if your project can wait a few weeks, prepare everything and sign once the rules are out.
4. Talk to your accountant about tax. Check whether you qualify for 25% on reinvested profits, and how much tax credit you could actually use each year.
5. Pick the right route for the size of the project. About €50,000 or more and ready to go: aim for the 30 November or 14 December Digitalise your SME cut-off. Smaller, or a website: keep every invoice for Micro Invest. A big expansion: watch Malta Enterprise for the new INVEST dates.
6. Get your data in one place. AI only works on information it can reach. Customers in a CRM, bookings in one calendar and products in one list come before any clever tool.
7. Make your website ready for the extra demand. If you are investing to grow, your website is where new customers check you first. A fast, clear site with a working enquiry form is the cheapest part of the plan.