Following the publication of a legal notice in the Government Gazette dated 6 January 2026, the Ministry for Transport, Infrastructure and Public Works, together with Transport Malta, has launched a financial grant scheme aimed at young drivers up to 30 years old in Malta who opt to voluntarily surrender their driving licence for a period of five years.
While the measure has generated considerable public interest, it is important to understand how it works in practice, who it applies to, and what committing to the scheme actually involves.
What the Scheme is About
Under the Driving Licence Surrender Scheme, eligible young residents may opt to surrender their driving licence for a period of five years. In return, participants receive a financial incentive paid annually over the duration of the agreement.
Rather than a single lump sum, the incentive is distributed in yearly instalments, with the total amount reaching up to €25,000 over five years, provided all conditions of the scheme are respected throughout the period.
Participation is voluntary and subject to an overall budget of €5 million, meaning applications are accepted on a first-come, first-served basis until funds are exhausted.
Who Can Apply
The scheme is targeted specifically at younger drivers and is subject to several eligibility criteria. Applicants must fall within the defined age threshold, have a minimum period of residence in Malta (minimum 7 years), and hold a valid Category B driving licence at least 12 months from the date of he application and that is not suspended or revoked.
Certain categories of individuals are excluded, including those whose employment requires them to hold a driving licence and persons occupying specific official roles. Participants must also commit not to hold or use a driving licence, whether issued locally or abroad, for the duration of the five-year period.
What Participation Involves
Once a licence is surrendered, the individual is legally considered a non-driver for the full duration of the agreement. Driving during this period is treated as an offence and may result in financial penalties, repayment of amounts already received, and further legal consequences.
At the end of the five-year period, participants do not automatically regain their licence. Reapplication is required, including completing a minimum number of driving lessons and following the standard licensing process in force at the time.
The scheme also allows for early withdrawal in limited circumstances. In such cases, the remaining financial benefit must be repaid on a pro-rata basis, depending on how much of the agreement period has already elapsed.
Environmental and Sustainability Considerations
Beyond traffic management, the Driving Licence Surrender Scheme is also positioned as an environmental measure. Transport remains a significant contributor to emissions and air quality concerns in Malta, where road density is high and private vehicle use is widespread.
By encouraging younger residents to reduce reliance on private cars, the scheme aims to contribute to lower emissions, reduced fuel consumption, and less pressure on already congested road networks. Fewer vehicles on the road can also have secondary environmental benefits, including reduced noise pollution and lower demand for parking and road expansion. While the scheme alone will not resolve Malta’s environmental challenges, it forms part of a wider policy direction that links personal mobility choices with broader sustainability objectives.
A Personal Decision with Long-Term Implications
For individuals, deciding whether to participate requires careful consideration. The financial incentive is clear, but so are the practical implications. Daily commuting needs, family responsibilities, accessibility to public transport, and lifestyle preferences all play a role in determining whether the scheme is suitable.
For some, particularly those living in central or well-connected areas, the scheme may align with existing travel habits. For others, especially those who depend on a private vehicle for work or personal reasons, the commitment may be more difficult to sustain.
Final Thoughts
Malta’s Driving Licence Surrender Scheme reflects a shift towards policy measures that encourage behavioural change through incentives rather than restrictions. It highlights how transport, environmental policy, and everyday lifestyle decisions are becoming increasingly interconnected.
For young residents and expats in Malta, the scheme represents a new option to consider rather than a universal solution. Understanding the conditions in full and assessing how they align with individual circumstances remains essential before making a commitment.
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