Malta Offers €25,000 to Those Who Give Up Their Driver’s License
03/18/2026

Malta has decided on a radical step in the fight against traffic congestion and harmful gas emissions by introducing an innovative incentive program for young drivers.
The government of this island nation has presented an ambitious scheme that offers citizens a direct financial benefit in exchange for giving up the right to drive motor vehicles. According to Transport Malta, the primary goal of this initiative is the systematic reduction of the number of active drivers on the roads and the encouragement of alternative forms of mobility among the younger population.
Strict criteria for eligibility for the incentive
The program is precisely targeted at the population up to 30 years of age, which means that only persons who have not yet celebrated their 31st birthday at the time of submitting the application may apply. In addition to the age limit, candidates must prove that they have been residents of Malta for at least 7 years and possess a valid category B driving licence for at least 12 months before applying. It is important to emphasize that the licence must not have been previously revoked or suspended, and all issuance costs must be duly paid.
The authorities have also clearly defined the groups that are not entitled to participate in this program despite meeting the age requirements. This primarily refers to persons whose occupation directly requires possession of a driving licence, such as professional drivers, but also to public officials, diplomats, and their partners who use official vehicles with drivers. This is intended to ensure that the funds go to those who truly change their everyday travel habits.
Disbursement of funds over a five-year period
The financial structure of the program provides for total support of 25,000 euros per person, but this amount is not paid out all at once. The funds are divided into 5 equal annual installments of 5,000 euros each. The first installment is paid immediately after the application is approved and the physical surrender of the driving licence to the competent authorities, while each subsequent installment is paid on the anniversary of the first payment, provided that the beneficiary strictly complies with the assumed obligations.
Applications for this program will begin to be accepted in January 2026, and the final deadline for submitting documentation is June 30, 2026. Given that the total budget is limited to 5 million euros, support will be granted according to the order of applications, which means that priority will be given to those who decide more quickly to change their lifestyle.
Obligations and rigorous penalties for violators
Persons who decide to take this step sign a voluntary renunciation of their driving licence for a period of a full 5 years. During that time, beneficiaries are strictly prohibited from driving any category of motor vehicle, not only in Malta, but also in any other country in the world. Along with the driving licence, all accompanying identification markings or permits for driving taxis or public transport vehicles are automatically canceled.
The state has provided exceptionally strict sanctions for those who try to game the system. If a person receiving support is caught driving during the five-year suspension period, they will face criminal prosecution in accordance with the law on driving without a licence. In addition, the offender will have to return the entire unused amount of the support and pay an administrative penalty in the amount of 5,000 euros, along with the initiation of court proceedings that may also result in a permanent ban on driving vehicles.
Return to the wheel under special conditions
Although the obligation is fixed at 5 years, the system allows the possibility of early termination of the suspension exclusively at specific times around the anniversaries of payments. In that case, the beneficiary is obliged to return the remaining amount of the received funds. For example, if someone decides to terminate participation in the 13th month of the program, they will have to return 20,000 euros to the state before they are allowed to have their documents reissued.
There are also extraordinary situations in which the Transport Malta board may approve termination of the suspension without financial penalties. This includes justified health reasons relating to the beneficiary or members of the immediate family, specific business needs that did not exist at the time of application, or other extraordinary circumstances that the competent board assesses as justified on the basis of the submitted evidence.
The future of mobility and the ecological shift
After the expiration of the mandatory 5-year period, citizens who wish to drive a vehicle again will not automatically get back their old licence. The procedure requires mandatory attendance of 15 hours of additional training at an authorized driving school in order to refresh skills and become acquainted with any changes in traffic regulations. Only after fulfilling that condition and submitting a new application can the licence be reissued.
This move by Malta represents one of the boldest European experiments in the field of sustainable transport. While many metropolises rely on bans on vehicle entry into city centers or the introduction of ecological zones, Malta goes a step further and directly invests in changing the mindset of its citizens. Analysts believe that the success of this model could serve as a template for other densely populated urban environments choking on traffic collapse, showing that the solution sometimes lies in the financial motivation of the individual, and not only in infrastructure projects.









