Malta Budget 2027 Raises Costs for Non-EU Workers, and iGaming Employers Read a Signal
Malta's 2027 Budget lifts work permit fees to €800 and adds a €400 yearly charge for non-EU workers. iGaming employers fear a wider shift in policy.
Malta's 2027 Budget, presented in Parliament in Valletta on 26 October 2026, makes it more expensive to employ workers from outside the European Union, and iGaming employers on the island say the direction of travel worries them more than the fees. Finance Minister Clyde Caruana announced a higher work permit fee, a new yearly infrastructure charge and the loss of several free services for third-country nationals, the legal term for non-EU citizens, who do not hold long-term resident status.
The Budget did not touch gaming tax. For an industry that hires heavily from outside the EU, the labor costs are the gaming story.
What the Budget changes for non-EU workers
The headline measures add €600 to the cost of a first-year permit and introduce a recurring yearly charge. The table sets out the main changes, based on KPMG Malta's Budget summary and local reporting of the speech.
| Measure | Before | From 2027 |
|---|---|---|
| Single work permit application fee | €600 | €800 |
| Infrastructure contribution (applications and renewals, minors exempt) | None | €400 a year |
| Free childcare | Available | Not for new registrations; enrolled children keep it |
| Free public transport | Available | Only Maltese and EU citizens and long-term residents |
| Non-EU Category B and B1 driving licences | No charge | €83 a month, with exemptions |
| In-work benefit (Atypical In-Work Benefit) | Available | Only Maltese and EU citizens and long-term residents |
The driving charge exempts EU and EEA citizens, long-term residents and their spouses, and UK, Australian and UAE citizens, among others, according to KPMG. Long-term resident status normally becomes available after five years of continuous legal residence, which is the line that decides who pays.
Caruana told Parliament that foreign workers will "continue to be welcomed," Newsbook reported, and that they should contribute for what they receive, including the use of infrastructure. The government projects about €80 million a year from the permit fee and the new contribution. Newsbook calculated that a household with two non-EU working adults would pay €2,400 in the first year in those two charges alone.
Why the iGaming sector is paying attention
Malta's gaming industry is one of the island's largest private employers. The Malta Gaming Authority (MGA), the national gambling regulator, reported in its 2025 annual report that about 15,039 people worked for MGA-licensed companies in Malta at the end of 2025, up 4.8% on a year earlier, according to iGaming Capital's reading of the report. Including indirect jobs, the sector accounted for an estimated 6.5% of the workforce and about 6.3% of gross value added.
| Malta gaming sector, end of 2025 | Figure |
|---|---|
| Direct employment at MGA licensees | About 15,039 |
| Direct and indirect employment | About 19,150 (6.5% of workforce) |
| Gross value added | €1.42 billion (6.3% of the economy) |
| Licensed companies | 302 |
Many of those roles, from developers to customer support, are filled by recruits from outside the EU. That is why the new costs, modest per head, drew comment from the industry.
What employers told NEXT.io
Executives interviewed by NEXT.io said the fees on their own would not change hiring plans much. Their concern was the signal:
- Chris Dalli, CEO of L&L, said his main worry was "the message this sends" about where policy might be heading. He expects some employers to favor EU and EEA candidates while still paying to hire exceptional non-EU staff.
- Russell Mifsud, who leads KPMG Malta's gaming practice, said the effect would show up mainly in "recruitment and retention" rather than daily operations.
- Anne Muscat Scerri, chief people officer at Immense Group, said slow permit processing already makes the company cautious about non-EU hires, but fees will not stop it hiring strong candidates.
- Sam Brown, CEO of Wildz Group, said the company employs third-country nationals but does not expect the Budget to affect its workforce.
An unnamed senior executive told the outlet there was little data to measure the impact. No company has linked job decisions to the Budget so far.
A sector already trimming staff
The Budget lands as several operators cut roles on the island. Bet365 said in September 2026 that it would cut about 340 jobs, including around 40 across Malta and Gibraltar, citing higher tax and regulatory costs. Malta-based supplier GiG Software has cut about a quarter of its workforce in 2026, NEXT.io reported alongside the company's Q3 2026 results. NEXT.io also reported about 50 local redundancies at Flutter's Sky Bet operation as work consolidates in Gibraltar; Gamingo has not confirmed that figure with Flutter.
Much of that pressure comes from abroad, notably the UK's 40% Remote Gaming Duty and the Machine Games Duty rise to 25% in this week's UK Budget, which squeeze the margins of operators that run their back offices from Malta.
How it compares with last year's Budget
A year ago the government's focus was tax, not labor. The 2026 Budget floated an indirect gaming tax alongside the 5% gaming tax on Maltese players, while promising support for iGaming start-ups and esports. The 2027 Budget instead forecasts real GDP growth of 3.8% and a deficit of 2.6% of GDP in 2027, according to Forvis Mazars, and leaves the gaming tax regime alone.
Malta's other long-running gaming issue, the dispute with the European Commission over Article 56A of the Gaming Act, which shields MGA licensees from some foreign court judgments, is untouched by the Budget. Talk in Brussels of an EU-wide gambling levy is a further cost risk for Malta-licensed firms.
What happens next
The measures need implementing rules before they apply in 2027; NEXT.io reports a 1 January 2027 start. Employers with large non-EU teams will be watching for the detail on renewals and on how the infrastructure contribution is collected.
Status reviewed on 29 October 2026. Budget measures are from KPMG Malta and Forvis Mazars summaries and local reporting of the 26 October Budget speech; sector figures are from the MGA's 2025 annual report as reported by iGaming Capital; executive comments are attributed to NEXT.io. More finance news and EMEA coverage.
Frequently asked questions
What did Malta's 2027 Budget change for non-EU workers?
The 2027 Budget, presented on 26 October 2026, raises the single work permit application fee for third-country nationals from €600 to €800 and adds a €400 annual infrastructure contribution on applications and renewals, with minors exempt. Workers without long-term resident status also lose free public transport and free childcare for new registrations, and some non-EU driving licence holders face an €83 monthly charge.
Does Malta's 2027 Budget raise gaming tax?
No new gaming tax was announced in the 2027 Budget, according to budget summaries from KPMG Malta and Forvis Mazars. The measures that concern the iGaming sector are the higher costs of employing non-EU staff. The previous year's Budget had floated an indirect tax framework for the gaming sector alongside the existing 5% gaming tax on Maltese players.
How much will Malta raise from the new work permit charges?
The government projects about €80 million a year from the higher work permit fee and the new €400 infrastructure contribution, according to Newsbook and Italpress reporting of the Budget. Newsbook noted that the government has not said the money will be ring-fenced for infrastructure. A household with two non-EU working adults would pay about €2,400 in the first year in these two charges alone.
Why are Malta's iGaming companies worried about the 2027 Budget?
iGaming firms in Malta rely heavily on recruits from outside the EU for technical, customer service and other roles. Executives told NEXT.io the fees themselves are manageable, but they fear the Budget signals a tougher policy toward foreign workers. KPMG Malta's Russell Mifsud expects any impact to show up in recruitment and retention rather than daily operations.
