Budget 2027 | More fees, less benefits for third-country nationals

Public transport will no longer be free for third-country nationals who’ve lived in Malta for less than five years.

The measure was among a number of budget items targeting TCNs, as Finance Minister Clyde Caruana outlined ways government will either save money or increase its revenue through foreign workers.

READ ALSO | Removal of free public transport for TCNs is ‘institutionalised discrimination,’ NGOs say

Among the changes, TCNs with a residence permit may drive with their non-EU licence for 12 months after arriving in Malta. The 12-month window does not reset if they leave and re-enter the country. For those who already hold a residence permit, the 12-month period is calculated from their last entry prior to 1 January 2027.

After this 12-month period expires, drivers must obtain a Maltese or EU driving licence to drive. 

TCNs will also face a new €83 monthly fee for their driving licence.

This does not apply for TCNs holding a residence permit issued for employment that involves driving.

When it comes to administrative fees for TCNs, Clyde Caruana announced the fee for applications to bring new TCNs to Malta will increase by €200, putting the fee at €800 per application. 

Caruana also announced the introduction of a new €400 “infrastructure contribution” that must be paid by new applicants and TCNs who are already in Malta and want to renew their residence. Minors will be exempt from this fee.

The finance minister also said that many permits issued by Identita will have their fees increased, although no further detail was given.

The increase in fees for work permits is expected to generate €80 million.

The finance minister also announced TCNs who aren’t long-term residents will not be eligible for the cheque given to workers with atypical working hours.

As of 2027, TCNs who haven’t lived in Malta for the past five years will also not be eligible for free childcare.

TCNs’ exclusion from free childcare, public transport, atypical working hours cheque, and their increased fees mean government will have an extra €46 million.