The Revolving Door: What Malta’s Non-EU Workers Build, and What They Get in Return

Malta’s economy has grown remarkably over the past decade, supported by thousands of non-EU workers across construction, hospitality, transport and other essential services. Yet behind this economic success lies a less comfortable question: what do the people whose labour has helped build Malta’s prosperity receive in return?

For many third-country nationals (TCNs), Malta offers employment and the possibility of a better future. But these opportunities come with conditions that EU citizens do not face, including employer-linked residence permits, additional fees and uncertainty when employment ends.

With Budget 2027 announcing higher permit costs and restrictions on certain public benefits, the question has become particularly relevant.

Malta’s Growth and Its Dependence on Foreign Workers

Malta’s economic expansion has been impressive. According to the International Monetary Fund (IMF), annual real GDP growth averaged close to 7% over the decade to 2024.

But this growth required workers, and Malta’s domestic workforce alone could not meet the demand.

The IMF’s 2026 assessment found that foreign workers accounted for approximately three-quarters of employment growth since 2013. They represented 39% of Malta’s workforce, with non-EU nationals alone accounting for 27%.

In construction, accommodation and food services, foreign workers collectively accounted for more than half of employment.

These figures illustrate how deeply foreign labour has become embedded in Malta’s economy. Without it, many businesses would have struggled to expand at the same pace.

However, economic growth and economic sustainability are not necessarily the same thing.

The IMF has warned that Malta’s labour-intensive growth model is placing increasing pressure on infrastructure and public services. Future development must depend more heavily on productivity, investment and skills rather than continuously expanding the workforce.

Budget 2027 reflects some of these concerns, with greater emphasis on technology, automation and higher-value investment.

The question is no longer simply whether Malta needs foreign workers, but how many the economy can sustainably accommodate, in which sectors, and under what conditions.

The Revolving Door: Why So Many Leave

Malta continues to attract exceptionally high numbers of non-EU residents relative to its population. According to Eurostat, Malta issued approximately 57 first residence permits per 1,000 residents in 2025, the highest rate in the European Union.

Yet the number of people arriving tells only part of the story.

Eurostat recorded 16,066 non-EU citizens emigrating from Malta in 2024, compared with 13,560 in 2023. These figures include non-EU residents holding employment, education and family permits.

A Central Bank of Malta study on foreign-worker retention found that nearly one-third of foreign workers leave within their first year of employment, while half leave within three years. Among TCNs specifically, approximately one-quarter leave within their first year. Not every departure represents a negative experience. Some workers complete their contracts, return to their families or pursue opportunities elsewhere.

Nevertheless, the figures raise an important question.

If Malta needs foreign workers so urgently, why does it struggle to retain so many of them?

High turnover affects employers too. Businesses must repeatedly recruit and train replacement staff, while the authorities continue processing applications for workers who may remain only a relatively short time.

Mit Budget 2027 introducing higher recruitment and residence-related costs, retaining experienced employees may become even more important. Understanding why people leave is therefore just as important as understanding why they arrive.

The Wage Gap: Who Benefits from Malta’s Growth?

The financial reality of working in Malta differs considerably depending on nationality, occupation and employment conditions.

Research published by the Central Bank of Malta in April 2026, based on 2024 tax data, identifies a substantial difference in annual employment income between Maltese, EU and third-country workers.

Among full-time workers employed for a complete year, the median annual incomes were:

On this measure, TCNs earned approximately 44% less than Maltese workers. However, these figures require careful interpretation. Differences in occupations, qualifications and working patterns influence earnings, while frequent job changes and incomplete working years can distort comparisons.

The figures do not establish that a TCN receives less than a Maltese employee for performing the same job. What they do show is that non-EU workers are disproportionately represented in lower-paid employment.

When modest wages are combined with rising rents, living expenses and residence-related costs, building financial security becomes considerably more difficult. And while Budget 2027 provides a cost-of-living adjustment of €6.41 per week, additional charges affecting many TCNs could absorb a significant part of that increase.

Employment, Residency and the Rising Cost of Staying

One of the most significant differences between EU and non-EU workers concerns the relationship between employment and residence. For many TCNs holding a Single Permit, the authorisation to live and work in Malta is linked to a particular employer and position.

Changing jobs therefore involves more than signing a new Arbeitsvertrag. A new application must be submitted, and the worker cannot automatically begin working for another employer.

The revised Arbeitsmigrationspolitik, introduced in stages from August 2025, brought higher application fees and stricter recruitment requirements.

Budget 2027 has now announced further increases:

For a newly recruited worker subject to the standard fees, the combined application and infrastructure charges could reach €1,200, before other applicable costs. The measures are intended for 2027, with further regulations and guidance needed to confirm their final application.

Meanwhile, workers who lose their jobs generally have an initial 30-day period to seek new employment, potentially extendable by another 30 days if they meet the applicable conditions. This offers more flexibility than the previous framework, but it does not eliminate the uncertainty associated with losing employment.

For a worker supporting relatives abroad, paying rent in Malta or waiting for another employer to submit an application, even a relatively short interruption can have serious financial consequences.

Budget 2027: Higher Contributions, Fewer Benefits?

Beyond permit fees, Budget 2027 introduces changes affecting everyday life for many non-EU residents. From January 2027, eligibility for free public transport and childcare will be restricted, with Maltese citizens, eligible EU citizens and qualifying long-term residents retaining access.

For TCNs without the required status, the announced measures include:

These measures will not affect every foreign resident equally. Long-term residents retain access to several benefits, while certain exemptions apply to driving-related charges.

Nevertheless, the distinction is significant.

A non-EU worker may be employed, pay income tax and social security contributions, and contribute to the same economy as an EU colleague, yet face different conditions when accessing publicly supported services.

The government argues that additional charges will help finance infrastructure and services affected by population growth. That argument deserves consideration. A growing population requires investment in roads, housing, transport and public facilities.

However, foreign workers already contribute through taxation, social security and everyday spending. No comprehensive public study was identified in the underlying research comparing the taxes paid by TCNs with the public services they use.

The question is not whether foreign residents should contribute to Malta’s infrastructure, but how their contributions are measured and what they are entitled to receive in return.

Protection, Exploitation and Unequal Treatment

Malta has introduced stricter recruitment requirements, greater employer accountability and mandatory electronic wage payments under its Labour Migration Policy. While these measures aim to improve working conditions, concerns about exploitation remain. The United States’ 2025 Trafficking in Persons Report highlighted illegal recruitment fees and the vulnerability of workers whose residence permits depend on their employers.

The Council of Europe’s European Commission against Racism and Intolerance (ECRI) has also raised concerns about negative attitudes towards migrants and gaps in protection. Its October 2026 assessment acknowledged progress in Malta’s integration policies but found that further improvements were needed to strengthen the country’s equality body.

There is, however, an important distinction between immigration control and discrimination. Governments have the right to regulate migration, and different rules for EU and non-EU citizens are not automatically discriminatory. Yet employer-linked permits, higher fees and the restrictions announced in Budget 2027 can place additional burdens on TCNs, particularly those earning lower wages.

While many Maltese employers provide fair working conditions, the risk of exploitation cannot be ignored. Ultimately, the question is not whether Malta should regulate immigration, but whether its policies provide sufficient protection and fair treatment to the workers on whom its economy depends.

The Question Malta Cannot Ignore

Malta’s economic success and the contribution of foreign workers are closely connected. Yet the figures also reveal frequent departures, substantial differences in earnings and employment conditions that can leave non-EU workers particularly vulnerable.

Budget 2027 adds another dimension, introducing higher costs and narrower access to certain benefits while the country continues to rely heavily on foreign labour.

Not every worker comes to Malta intending to settle permanently, and not every departure represents failure. But an economy that repeatedly recruits workers without retaining many of them should question whether its approach is sustainable.

Malta has spent years asking how many foreign workers its economy needs. Perhaps it is time to ask what would make more of those workers want to stay.