Maltese citizens largely support current taxes and public spending

Within the European Union, Malta is notable for the high level of public support for retaining existing tax rates and government spending. According to the most recent Flash Eurobarometer on taxation by the European Commission, almost half of the population in Malta favors keeping both taxes and public services unchanged.

The survey, conducted across all 27 EU member states in April and published recently, provides a comprehensive snapshot of public attitudes toward taxation, fiscal policies, and the perceived fairness of tax systems across the bloc. For Malta, the findings underscore a distinctive approach to balancing economic incentives with public service provision.

Support for the status quo is notably high

According to the survey, 46% of Maltese respondents favor maintaining existing tax rates and public spending levels. This proportion significantly exceeds the EU average of 26% and ranks just below Luxembourg, which reported 47%, while Denmark comes next with 43%. This trend reflects a widespread preference for stability rather than significant reforms or tax adjustments among the Maltese population.

The timing of this sentiment is notable, coming after a substantial reduction in income tax for middle-income earners, announced in Malta’s last budget and implemented in January. Such policy measures may have reinforced public confidence in the existing fiscal system and contributed to the higher-than-average support for maintaining the status quo.

Limited appetite for tax cuts or increases

The survey also highlights the nuanced positions of Maltese citizens regarding tax adjustments. Only 31% of respondents believe that taxes are too high and should be cut even if it results in reduced funding for public services. This proportion is below the EU average of 39%, indicating a more moderate approach toward tax reductions in Malta compared to other member states.

Conversely, support for higher taxes in return for improved public services is relatively low. Just 19% of Maltese residents support raising taxes to enhance or expand public services, which is lower than the EU average of 27%. For context, support for higher taxes is strongest in Sweden and Spain, where 42% of respondents endorse this approach, followed by Finland at 40%. At the other end of the spectrum, Slovakia records the highest demand for tax reductions, with 59% wanting lower taxes even at the expense of service quality. Malta’s position aligns more closely with Luxembourg and Denmark, highlighting a preference for stability over either tax hikes or cuts.

Maltese citizens display relatively high tax literacy

The Eurobarometer survey also assessed how well citizens understand their national tax systems. Compared with other EU countries, Malta demonstrates relatively strong tax literacy. About 15% of respondents described their understanding of the tax system as “very good,” positioning Malta just behind Greece, where the figure stands at 17%. A further 47% described their understanding as “good” or “very good,” notably higher than the EU average of 35%.

This higher confidence in tax knowledge may help explain the measured stance Maltese citizens take on changes to taxation and public spending, suggesting that opinions are informed by a relatively sophisticated understanding of the fiscal system.

Preferences for tax reductions

When questioned about which taxes they would like to see lowered, 56% of Maltese respondents identified income tax as their top priority. This proportion is slightly above the EU average but still below countries such as Slovenia (72%) and Luxembourg (70%).

Capital gains taxes emerge as the leading candidate for reduction in Malta, with 34% of respondents supporting such measures. This is the highest proportion in the EU, exceeding the bloc average of 16% by more than double. When tax hikes are unavoidable, 25% of Maltese favor increasing inheritance taxes, notably higher than the EU-wide figure of 17%. Support for raising value-added tax (VAT) stands at 18%, while 12% favor higher housing taxes. Both figures are comparatively low, suggesting a cautious approach to increasing general consumption or property-related taxes.

Views on tax fairness

Malta also distinguishes itself in terms of perceptions of fairness in the tax system. The survey revealed that 54% of Maltese respondents think taxes are proportional to income “to some extent,” while 31% believe they are proportional “to a large extent.” Only 13% feel that current tax rates do not adequately reflect differences in income.

Importantly, the 31% who view taxes as largely proportional is significantly higher than the EU average of 23%, indicating a relatively strong perception of fairness in Malta’s tax system. This suggests a comparatively higher level of trust in the equity and fairness of Malta’s taxation system.

Ease of filing tax returns

Despite relatively high tax literacy, compliance and ease of filing present mixed results. Less than half of Maltese respondents (45%) find the process of filing tax returns straightforward, a figure slightly below the EU average of 49%. At the same time, 24% of Maltese citizens are exempt from filing altogether, one of the highest proportions in Europe.

The survey also identified VAT as the most challenging tax to manage. Seventeen percent of Maltese participants reported challenges in handling VAT, the highest rate in the EU, while the overall EU average stands at just 8%. These findings indicate that while understanding of the tax system is strong, certain practical aspects of compliance remain complex.

Support for wealth and environmental taxes

The Eurobarometer survey reveals that Maltese citizens broadly support both wealth and environmental taxation. Approximately two-thirds of respondents (67%) support implementing a minimum wealth tax on the wealthiest 0.001%, a figure close to the EU average and significantly higher than Czechia’s 45%. Such a tax would have a very limited impact in Malta, affecting only a handful of individuals.

Despite Malta’s reputation as a tax-friendly jurisdiction for foreign companies, public opinion strongly favors corporate tax responsibility. A substantial majority (83%) of Maltese respondents agree that large multinational corporations should pay a minimum level of tax in every country where they operate, second only to Greece at 87%.

Environmental taxes also receive strong support. Malta aligns with Portugal and Bulgaria, with 71% of respondents backing taxes on environmentally harmful products. More than half (54%) support higher taxes on single-use products, indicating a willingness to leverage fiscal policy to address environmental challenges. However, only 48% favor taxes on air travel, lower than most EU countries, likely reflecting the logistical importance of air transport for connecting Malta to mainland Europe.

Priorities for EU-wide tax policy

When asked about EU-wide priorities, Maltese respondents emphasize tackling tax avoidance and evasion, with 53% identifying this as a key concern—slightly above the EU average. Malta also leads the bloc in prioritizing green economy tax measures, with 30% of respondents citing this option compared to just 7% in Czechia. This reflects a forward-looking approach, balancing domestic fiscal policy with broader European sustainability objectives.

Conclusion

The European Commission’s Flash Eurobarometer survey paints a detailed picture of Malta’s distinctive approach to taxation. Citizens exhibit a strong preference for maintaining current tax rates and public service levels, moderate demand for tax cuts, cautious support for tax increases, and high confidence in their understanding of the system.

Maltese public opinion also demonstrates progressive tendencies regarding wealth, corporate, and environmental taxes while retaining trust in the fairness of the national tax system. These findings suggest that Malta combines fiscal stability with openness to targeted reforms, reflecting both prudence and forward-looking perspectives among its citizens.

FAQs

What percentage of Maltese prefer keeping taxes and public services unchanged?
46% of Maltese respondents favor maintaining existing tax rates and public spending levels.

How does Malta compare to the EU average in support for maintaining taxes?
Malta’s 46% support is well above the EU average of 26%, indicating strong backing for the status quo.

Do Maltese citizens support higher taxes for improved services?
Only 19% support higher taxes for better services, below the EU average of 27%.

Which taxes do Maltese want reduced the most?
Income tax is the top choice, with 56% favoring reductions, followed by capital gains tax at 34%.

How do Maltese perceive tax fairness?
54% believe taxes are proportionate “to some extent,” while 31% say “to a large extent,” above the EU average.

Is tax filing considered easy in Malta?
Only 45% find it easy, slightly below the EU average of 49%, though 24% do not need to file at all.

What is Malta’s stance on wealth taxes?
67% support a minimum wealth tax for the richest individuals, in line with the EU average.

Do Maltese support corporate tax responsibility?
Yes, 83% believe multinational companies should pay minimum taxes in all countries where they operate.

How do Maltese view environmental taxation?
71% support taxes on environmentally harmful products, and 54% favor higher taxes on single-use items.

What are the main EU tax priorities for Maltese citizens?
53% prioritize tackling tax avoidance and evasion, and 30% support tax measures to promote the green economy.