The immigration-related measures announced in Malta’s Budget 2027 mark a significant policy shift that distinguishes between third-country nationals without Long-Term Resident statusand those who have established a long-term connection with Malta. For employers, foreign professionals and relocating families, the changes underscore the increasing importance of obtaining Long-Term Resident (LTR) status wherever eligible.
A Clear Move Towards Long-Term Integration
While Malta continues to recognise the important contribution made by foreign workers to the national economy, the Government has introduced several measures which increase the practical importance of formal Long-Term Resident status. Under the new budget measures, third-country nationals who do not hold Long-Term Resident status will lose eligibility for a number of benefits, including free public transport and free childcare services. In addition, certain government payments will no longer be available to non-long-term residents.
The changes are announced to apply from 1 January 2027. Families already using the free childcare scheme will retain access for their currently enrolled children until those children cease to qualify.
These developments create a clear distinction between individuals who hold temporary residence permits and those who have successfully transitioned to Long-Term Resident status under Maltese and EU legislation.
Why Long-Term Resident Status Matters More Than Ever
Long-Term Resident status is generally available to third-country nationals who have legally and continuously resided in Malta for at least five years, subject to satisfying the applicable statutory requirements, including stable and regular resources, suitable accommodation, health insurance, and integration requirements. Completing five years of residence does not automatically confer LTR status; an application must be submitted and approved. Qualifying residence categories and permitted absences must also be considered.
Although the detailed implementing measures arising from the budget are still expected, the Government has explicitly linked several new restrictions to individuals who are not considered long-term residents. This suggests that obtaining LTR status may become increasingly important not only from an immigration perspective but also from a practical and financial standpoint.
For eligible individuals, obtaining Long-Term Resident status may offer:
- Greater long-term security of residence.
- Greater security of residence, independent of a particular employment relationship.Enhanced mobility rights within the European Union framework, subject to the applicable national rules.
- Improved access to benefits and entitlements reserved for long-term residents.
- Greater certainty for family planning and long-term settlement in Malta.
Increased Costs for Residence and Employment Permits
The Budget also introduced a number of measures that will increase the cost of employing and residing in Malta as a third-country national.
Key measures include:
- An increase in fees for new work-permit applications for third-country nationals, bringing the fee to €800 per application.
- A new €400 infrastructure contribution applicable to new applicants and residence permit renewals, with minors exempt from this contribution.
- Additional increases to certain fees administered by Identità, with further implementation details expected.
These changes further strengthen the case for long-term residence planning, as individuals who intend to build their future in Malta may benefit from exploring pathways that provide greater stability and reduce reliance on ongoing temporary permit renewals.
What Employers Should Consider
Employers who depend on international talent may need to reassess workforce planning strategies in light of the increased administrative costs and the evolving immigration landscape. However, the Budget also highlights the importance of employee retention and long-term integration.
Supporting key employees in their progression towards Long-Term Resident status may become an increasingly valuable component of workforce planning, helping businesses retain experienced personnel while providing greater certainty for foreign workers and their families.
The immigration measures announced in Budget 2027 indicate a broader policy direction: encouraging foreign nationals who choose Malta as their home to establish deeper and longer-lasting ties to the country. As further implementation details emerge, both employers and foreign residents should review their current immigration position and assess whether they may qualify for Long-Term Resident status.
At CSB Group, we assist individuals, families and employers with all aspects of Maltese immigration, including
residence permits,
employment-related immigration matters and Long-Term Resident applications. As Malta’s immigration framework continues to evolve, proactive planning has never been more important.
This article has been authored by Senior Executive - Immigration and Relocation, Michela Pace as the primary author and Senior Manager – Immigration and Relocation,
Malcom Ferrante as the secondary author.
