Malta budget raises work permit costs for non-EU workers from 2027

Malta's 2027 budget will raise work permit costs and restrict some benefits for third-country nationals who do not qualify for long-term resident status, with the measures due to take effect on 1 January 2027. The changes were announced in the national budget on 26 October. Gaming executives said the measures raised concern about the direction of government policy on foreign labour.

A new work permit application will cost €800, up from €600. Applications and renewals will also carry a €400 infrastructure contribution, and minors are exempt from it. Free public transport will no longer be open to third-country nationals who lack long-term resident status. Free childcare will stop being offered to new registrations from affected workers, while children already enrolled will retain free access. Non-EU holders of category B and B1 driving licences who are eligible will pay an €83 monthly administrative fee, with exemptions for specified groups. The permit-related changes are expected by the government to bring in approximately €80m in annual revenue.

For workers who want to keep certain benefits, long-term resident status is therefore likely to grow in importance. Third-country nationals are generally able to apply once they have completed five years of continuous legal residence in Malta, provided they meet the eligibility requirements and are approved.

L&L chief executive Chris Dalli told NEXT.io that “the message this sends across about potentially where policy might be heading” worried him most. He suggested that when two applicants are equally qualified, the extra expense of taking on a non-EU worker may push employers towards EU or EEA candidates. A standout candidate, though, would still justify the added outlay, he said. Dalli noted that two TCNs work at L&L and promised to shield them from any negative effects. He further asked whether foreign workers were being used as a scapegoat for the country’s infrastructure problems.

In a LinkedIn post, Betstarters COO Glenn Debattista drew attention to what the changes mean over time, citing the cumulative costs TCNs face. “That matters more than what some might think, especially in the long term,” he said. Debattista argued that since Malta depends on international workers in many sectors, iGaming among them, the question of whether the island still appeals to them as a place to live and work deserved attention.

Mifsud said Malta retains significant strengths as an iGaming jurisdiction but that, in an increasingly competitive international market, it needs to remain attractive both to businesses operating there and to the people they depend on.

The considerations come as operators face wider compliance, technology and regulatory costs and changes in the international market, which have led some to restructure operations in Malta. Flutter Entertainment has faced changes involving its Sky Bet operation in Malta, with around 50 local redundancies expected as operations were consolidated in Gibraltar amid a wider restructuring affecting approximately 1,400 roles across the group's UK and Ireland business.