Budget 2016 at a glance



The cost of living adjustment will be at €1.75 per week, granted to all workers, pensioners and those on social benefits. Students’ stipends to increase pro-rata.


Income tax cuts


Single declarations up to €9,100, joint declarations up to €12,700, and parent declarations up to €10,500 won’t be taxed.

Single declaration up to €19,5000 to benefit from an annual €90 tax cut; €105 tax cut for a parent with single declaration up to €21,200; €120 tax cut for €28,700 couple’s joint declaration;

Working married couple with single computation can save up to €180; Working married couple each earning up to €21,000 can save up to €210;

Minimum wage earners will not be taxed.

Extra duty carried out by police officers to be taxed separately at a 15% rate.


VAT cuts on sports

7% VAT on sports activities including gym memberships, fitness centres, football nurseries. Coaches and professional sportsmen to benefit from a 7.5% income tax rate.


In-work benefit

Earners with an income of €6,600 up to €15,000 to receive €1,200 for every child. Working couples earning between €10,000 and €20,000 to receive up to €1,000 per child. The same benefit will be given to second parent joining the workforce.

Families with one working person earning between €6,600 and €12,700 to receive up to €150 per child.



12,000 pensioners on minimum pension to receive an increase of between €4.15 and €8.92 per week, the highest receivers being those aged over 75.

Married couples on minimum pension not affected by the measure to receive a weekly increase of €4.15 per week over and above COLA adjustment.

Additional €300 for elderly aged 75 and over.


Live-in carer

Government to subsidise the salary of a carer employed to take care of an elderly relative at home, currently on a waiting list. The subsidy will be equivalent to up to half of the minimum wage.


First-time buyers

First-time buyers to save up to €5,000 for their first home, backdated to 1 July 2015.


Withholding tax

15% withholding tax on residential rents extended to commercial properties.

Final withholding tax on property in urban conservation areas down to 5%.



For further information please contact:

Marica Bonello


Tel: +356 21423059