The Budget 2021 in 2 minutes

  • COLA increase €1.75
  • Employees leave increased by another day
  • Government tax refund between €45-€95
  • Government vouchers reissued:
    • €60 accommodation and restaurants
    • €40 shops and services
  • Children’s allowance increase of €50 or €70 depending on the amount of income earned
  • Increase in foster care allowance of €520, amounting to a total allowance of €5,720
  • A maximum €1,000 benefit for couples who adopt locally
  • Increase in government pension by €260 (cola of €1.75 + a onetime increase of €3.25 per week) and exemption from tax on the first €14,058
  • Bonus of €250 for pensioners who paid less than 5 years NI contributions and €350 for pensioners who paid more than 5 years NI contributions
  • NI contributions paid before 19 years of age to be considered for senior citizens born before 1962, who were previously not eligible for a pension
  • Treasury (Service) pension increase of €200
  • Carer at Home subsidy increased to a maximum of €700
  • Benefit of €300 for parents who leave their work to take care of children with severe disabilities
  • Free tal-Linja Card for senior citizens 70+
  • New issue of government savings bonds for pensioners
  • Increase of €1,000 to the tax free bracket of investment in private pensions
  • First time buyers scheme tax free bracket increased to €200,000
  • Stamp duty reduced from 5% to 1.5% on the first €400,000
  • Increase in the tax free bracket to €250,000 for property given by donation from parents to their children
  • 15% succession tax will be taken on the full amount instead of the amount of profit made
  • Profit on the sale of books by the author as royalties taxed at a rate of 15%
  • COVID Wage Supplement extended to March 2021
  • Increase in the VAT exempt threshold to €30,000
  • Maximum of €200,000 benefit for companies investing in innovation projects
  • Maximum benefit of €7,000 from the scrappage of vehicles
  • Maximum €400 incentive on the purchase of electric motorcycles
  • €400 benefit on the changing of motor vehicles from petrol to LPG
  • Motorcycle capacity vehicles of between 125cc and 250cc decrease in license to €25
  • €10,000 grant for the purchase of new taxis accessible with wheelchairs
  • Increase in exempt tax bracket to €50,000 for voluntary organisations

For further information please contact Edward Spiteri on

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