Malta Offers €25,000 Incentive for Young Residents to Surrender Driving Licences for Five Years

Malta introduces a €25,000 incentive for residents under 30 to surrender their driving licences for five years to reduce national traffic congestion.

By: AXL Media

Published: Apr 6, 2026, 12:57 PM EDT

Source: Information for this report was sourced from News World

Financial Rewards for Reducing Road Density

In a direct attempt to alleviate chronic traffic congestion, the government of Malta has introduced a specialized incentive program offering young motorists up to €25,000 to stop driving. Under the initiative managed by Transport Malta, residents under the age of 30 can receive annual payments of €5,000 over a five-year term provided they surrender all categories of their driving credentials. This policy emerges as a central component of a broader national strategy aimed at reducing the total volume of private vehicles currently straining the island’s limited infrastructure.

Eligibility and Strict Compliance Mandates

The program carries rigorous requirements for those seeking the five-year payout. Applicants must have maintained residency in Malta for at least seven years and held a valid Category B licence for a minimum of 12 months without serious penalties or prior suspensions. Once enrolled, participants are legally barred from operating any vehicle both within Malta and internationally for the duration of the agreement. Compliance is monitored through annual installments, and any violation of the non-driving clause triggers significant financial and legal penalties for the participant.

Targeting a Densely Populated Automotive Landscape

Malta’s geography presents unique challenges, with a population of over half a million contributing to a vehicle-to-land ratio that is among the highest in the region. Officials indicate that the primary objective of this payout is to decrease the number of active motorists and force a transition toward alternative mobility. While the scheme aligns with European trends favoring sustainable transport, Malta’s approach is notably more interventionist, seeking to physically remove drivers from the road network through direct cash transfers rather than relying solely on infrastructure improvements.