This Country Offers Residents $29,000 to Give Up Their Driver’s Licenses for Five Years

In a bid to limit the number of cars on its roads, the country of Malta is offering people 25,000 euros to surrender their driver's licenses for a period of five years.
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Malta, Europe’s smallest country, has one of the highest vehicle densities on the continent and traffic congestion is a constant issue. To mitigate this problem, authorities have come up with an ingenious program titled “Driving License Surrender Scheme,” which is designed to incentivise people to surrender their driver’s license for a period of up to five years.

According to Malta’s Transport Minister, Chris Bonett, one of the main goals of the Driving License Surrender Scheme is to create a “mobility shock,” especially among young people, before car use becomes too ingrained a habit.

Through this innovative program, Malta is offering young drivers 25,000 euros ($28,650) to voluntarily hand over their driver’s licenses and refrain from driving for five years. Payments are made in yearly instalments of 5,000 euros, and beneficiaries are obligated to return the received amounts on a pro-rata basis, if they change their mind before the agreed five years have passed

To be eligible for the Driving License Surrender Scheme, drivers must be 30 years old or under, residents of Malta for at least seven years, have a driver’s license for at least 12 months, and not have had their licenses suspended or revoked.

Malta has allocated an annual budget of €5 million to this scheme, limiting the number of beneficiaries to 1,000 people per year. Initial feedback suggest a very high interest in the program, which suggests that for many young drivers, the financial incentive is more important than driving a vehicle.

Interestingly, once the license is surrendered, it is considered permanently suspended, and the individual will have to take 15 hours of driving lessons to obtain a new license after five years.

The declared aims of Malta’s Driving License Surrender Scheme are to reduce the number of active drivers and to encourage the use of public transport, with the end goals of fighting traffic congestion and reducing pollution levels.

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