Malta Budget 2027: Key Changes for TCNs and Foreign Workers

Malta’s Budget 2027, presented on 26 October 2026, includes several major changes for third-country nationals (TCNs), meaning non-EU citizens living and working in Malta. They include the end of free public transport for many TCNs, higher work permit fees, a new yearly infrastructure contribution and new driving licence rules. This guide summarises what was announced and what it may mean for you.

Important: these measures were announced in the budget speech and still need to be put into law. Exact start dates, eligibility rules and details may change. This article is for general information only and is not legal advice. Always check with Identità, Jobsplus or your employer before making decisions.

Summary: Budget 2027 changes for TCNs

Free public transport: ends for TCNs who are not long-term residents, from January 2027
Free childcare: new TCN families who are not long-term residents will not be eligible from 2027
Work permit application fee: up from €600 to €800
New infrastructure contribution: €400 per year on new permits and renewals (minors exempt)
Driving licences: non-EU licences valid for 12 months after arrival, then a Maltese or EU licence is needed
Atypical working hours cheque: no longer available to TCNs who are not long-term residents
Other Identità fees: expected to rise

1. Free public transport for TCNs

Since 2022, residents with a personalised tallinja card have travelled free on most buses. Under Budget 2027, free public transport will be limited to Maltese citizens, EU nationals living in Malta and long-term residents. TCNs without long-term residence status are expected to pay normal fares from January 2027.

Some reports describe this as applying to TCNs who have lived in Malta for less than five years. Five years of residence does not automatically give long-term resident status, though, as there are also conditions on income, accommodation and integration. Check the official rules once they’re published.

What fares will cost: a single bus ticket is currently €2 in winter and €2.50 in summer, valid for two hours. Regular commuters may want to compare weekly or monthly card options. See our Malta public transport guide for fares and routes.

2. Free childcare

From 2027, TCN families who are not long-term residents will generally not be able to join the free childcare scheme. Reports say families already in the scheme will keep access until their children are no longer eligible.

3. Work permit fees and the €400 infrastructure contribution

New single permit application fee: €800, up from €600
Infrastructure contribution: €400 a year, charged on new applications and renewals
Exemption: applicants under 18
Example: a new adult applicant could pay €1,200 in the first year (€800 + €400), before other fees

It’s not yet clear in every case whether the employer or the worker will pay these fees. Ask your employer how they plan to handle them.

4. Driving licence rules

TCNs with a Maltese residence permit will be able to drive on their non-EU licence for 12 months after arriving in Malta. The 12 months do not restart if you leave and come back. After that, you’ll need a Maltese or EU driving licence.

For people already living in Malta, the 12 months are reported to count from their last entry before 1 January 2027.
People whose residence permit is for a job that involves driving are reported to be exempt.
If this affects you, start looking into converting your licence or taking the Maltese test early, as waiting times can be long.

5. Atypical working hours cheque

TCNs who are not long-term residents will no longer be eligible for the atypical working hours cheque, which supports people who work night shifts, weekends or irregular hours.

Budget 2027 measures for everyone living in Malta

Many general measures apply to all residents, including TCNs who meet the usual conditions:

No increase in income tax, VAT or social security contributions
Working parents: larger tax cuts
Pensions: up by €10 a week
Super bonus: a new annual bonus phased in: €300 in 2027, €600 in 2028 and €1,000 by 2029
Energy and fuel prices: subsidies continue in 2027
Power cuts: automatic compensation for households affected by long outages

What should TCNs do now?

Check your long-term residence eligibility: if you’ve lived in Malta for about five years or more, find out whether you can apply for long-term resident status.
Plan your transport budget: if you rely on free buses, work out your monthly costs from January 2027.
Talk to your employer about who will pay the higher permit fees and the €400 contribution.
Sort out your driving licence early if you drive in Malta.
Follow official updates from Identità, Jobsplus and Malta Public Transport, as details may change.

Frequently asked questions

Is public transport still free for foreigners in Malta?

Under Budget 2027, free public transport is expected to remain for Maltese citizens, EU nationals living in Malta and long-term residents. TCNs who are not long-term residents are expected to pay fares from January 2027.

How much is the Malta work permit fee in 2027?

The budget announced an increase in the single permit application fee from €600 to €800, plus a new €400 yearly infrastructure contribution on applications and renewals, with minors exempt.

Can I drive in Malta with an Indian or other non-EU licence?

Under the announced rules, TCNs with a residence permit can drive on a non-EU licence for 12 months after arriving. After that, a Maltese or EU licence is required, with an exemption for people whose permit is for a driving job.

When do the Budget 2027 changes start?

Most were announced for 2027, and the end of free transport for many TCNs is reported to start in January 2027. Exact dates for other measures still need to be confirmed.

Sources: Budget 2027 speech as reported by MaltaToday, Lovin Malta, Newsbook and The Malta Post on 26 October 2026. We’ll update this page as official details are published. For tourist-related changes, see Malta Budget 2027: what changes for tourists.