Budget 2027: Some Non-EU Drivers Face €996 A Year In New Licence Charges

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Some non-EU residents in Malta will face a new driving-licence charge of €83 per month from January 2027, equivalent to €996 over a full year.Finance Minister Clyde Caruana announced the administrative fee during today’s Budget speech, alongside changes to the rules governing how long foreign driving licences can be used in Malta.The charge will apply to affected holders of category B and B1 licences issued or renewed from 1st January 2027. However, several groups will be exempt.These include EU and European Economic Area citizens, people holding long-term residence permits and their spouses, and citizens of the United Kingdom, Australia and the United Arab Emirates.People holding residence permits specifically for driving-related employment will also be exempt.Under the new arrangements, the affected driving licence will expire with its holder’s residence permit. Renewal will not be possible while outstanding charges remain unpaid.The Budget also sets out a 12-month limit for driving in Malta with a licence issued outside the EU.For people granted a residence permit, that period will run from their entry into Malta, rather than from the date their residence permit is issued. Leaving the country and returning will not restart the clock.For existing residence-permit holders, the period will be calculated from their last entry before 1st January 2027.Once the 12 months expire, a Maltese or EU driving licence will be required. The speech provides an exemption for people with residence permits specifically for driving work.The changes form part of a wider package affecting foreign residents, including restrictions on free public transport, eligibility for new entrants to free childcare and the cheque for atypical workers.Caruana said those four measures together were expected to generate €46 million annually through savings or additional revenue. He did not provide a separate revenue estimate for the driving-licence charge.What do you think of the new €83 monthly charge?•