Malta – Property Letting

How does the property letting process work in Malta?

The complete letting journey in Malta typically starts with advertising the property — whether through local platforms, international portals, or a letting agent — and then moves through tenant viewings, reference checks, and negotiation of terms. In contrast to some markets where a spoken agreement may carry legal weight, Malta’s framework requires all private residential leases to be set out in writing, with specified mandatory clauses present before a contract can be validly registered.

The Private Residential Leases Act (first enacted in 2020 and amended in 2024) obliges all landlords entering long-term rental contracts to register those agreements with the Housing Authority. Contracts that have not been registered are treated as legally null and void. This represents a meaningful departure from systems in certain civil law countries where informal arrangements may still be enforceable — in Malta, the absence of a properly registered written agreement leaves both parties with no legal standing.

A valid tenancy agreement in Malta must specify the monthly rent, the length of the lease, payment arrangements, the number of permitted occupants, and a thorough inventory of the property’s contents and their condition. Landlords must furnish a detailed inventory covering appliances, kitchen equipment, and furniture condition; if this list is absent, the contract is rendered void.

Leases cannot be set for a term shorter than one year; any agreement that stipulates a lesser duration is treated as though it were agreed for one full year, with the exception of short lets. If neither party issues a notice of termination, the Housing Authority will automatically renew the contract for a further 12 months. This automatic renewal mechanism means landlords who wish to regain possession must take deliberate action to serve written notice within the required timeframe.

When screening prospective tenants, landlords may ask for proof of identity and references, though Malta does not have a formal national tenant-referencing scheme comparable to credit agency services in some other countries. Landlords are advised to request identification and verify ownership records through official sources. Engaging a licensed letting agent can introduce an extra layer of due diligence and security throughout the process.

What types of rental arrangements are available in Malta?

Malta’s rental market falls broadly into three categories: long-term residential lets, short-term residential lets, and holiday or tourism lets. Each is subject to a distinct legal framework, with its own registration requirements, licensing obligations, and tax implications.

Long-term residential lets fall under the Private Residential Leases Act and must run for a minimum of one year. They must be registered with the Housing Authority, are subject to the 5% annual rent increase ceiling, and come with robust tenant protections regarding notice periods and eviction procedures. These arrangements are the most widely used by expats and employees settling in Malta for a year or more.

Short-term residential lets (referred to in Maltese law as “short lets”) are designed for particular categories of non-resident workers or students staying for fewer than six months. Such lets are limited to a duration of up to six months and are intended to meet the housing needs of non-resident workers employed for less than six months, or non-resident students enrolled in courses of less than six months. These contracts must still be registered with the Housing Authority but are subject to different notice and renewal provisions compared with long-term leases.

Holiday and tourism lets fall entirely outside the residential lease framework. Short letting is treated as a commercial activity in Malta, which means landlords require a licence from the Malta Tourism Authority (MTA) and must comply with various tax, VAT, and bookkeeping requirements. A short let refers to the rental of a furnished property for temporary stays, typically aimed at tourists or visiting workers; properties offered for periods of fewer than 90 days at a time are classed as holiday premises and must hold a valid licence.

Short-term rentals in Malta have grown substantially, fuelled by tourists, business travellers, and remote workers, with platforms such as Airbnb and Booking.com dominating the market — over 6,000 licensed holiday homes have been recorded, yet it is estimated that up to half of all listings may be unlicensed. Operating without a valid MTA licence carries the risk of substantial fines and constitutes a breach of law, so landlords must ensure full compliance before advertising a property on any platform.

What rental income can landlords expect in Malta, and how are rates set?

Maltese rental regulations do not prescribe a fixed price for rent; determining the amount is left to the contracting parties themselves. Rental values are therefore shaped by the open market — with location, size, condition, and furnishing standard being the principal pricing factors. That said, once a rent figure has been agreed and written into a lease, any subsequent increase is tightly controlled by law.

Rent may only be raised if the lease agreement contains an express provision permitting this, and even then, it may only be increased once in any twelve-month period. The increase must not exceed the annual variation recorded in the property price index published by the National Statistics Office, and in no event may it surpass 5% of the previous rent per annum. This cap, introduced in 2020 and confirmed in the 2024 amendments, applies to all long-term residential leases. There is currently no system of rent pressure zones targeting particular localities, as exists in certain other European countries such as Ireland or the Netherlands.

In high-demand areas such as Sliema and St Julian’s, apartment rents typically range from around €600 to €2,000 per month, while more affordable areas including St Paul’s Bay, Bugibba, Marsaskala, and Birżebbuġa offer apartments from approximately €500 per month. These figures are indicative and market conditions change regularly; always consult current listings and contact a local agent or the Housing Authority’s resources at housingauthority.gov.mt for up-to-date benchmarks.

Unless the parties agree otherwise, rent is payable on a monthly basis, and a landlord may not under any circumstances demand advance payment of more than one month’s rent. This is a notable consumer protection measure that differs from markets where landlords may sometimes request several months’ payment upfront.

Do landlords need to provide a furnished or unfurnished property in Malta?

In Malta, apartments are conventionally let fully furnished, complete with kitchenware, appliances, and air conditioning. This is the strong prevailing market norm, particularly in urban and tourist-heavy areas, and prospective tenants generally expect to find a furnished property. Unfurnished or part-furnished lets do exist but are less common and typically attract a different tenant profile, such as long-stay families who prefer to bring their own possessions.

There is no absolute legal obligation to furnish a property before letting it — the law does not specify a particular furnishing standard for private residential lets beyond the requirement that the property must be fit for habitation. However, the mandatory inventory requirement effectively creates a documented record of whatever furnishings and appliances are provided, which then serves as the reference point for any deposit deductions at the conclusion of the tenancy.

The furnishing standard can also affect how a property is classified and taxed. Landlords letting out commercial tenements or Malta Tourism Authority licensed tenements are not eligible for the 15% final withholding tax — that flat rate is reserved for residential lets. Holiday furnished premises must, by their very nature, be fully equipped for self-catering stays, and the MTA’s inspection process verifies that minimum amenity standards are satisfied before a licence is issued.

Landlords should also note that an Energy Performance Certificate (EPC) is required for all real estate transactions, including lettings, and must be obtained by the property owner. This is a legal prerequisite that must be satisfied before advertising or completing any lease agreement.

Do you need a licence or registration to let a property in Malta?

The answer depends on the nature of the letting activity you intend to undertake. For long-term and short-term residential lets, there is no landlord “licence” in the sense of a permit issued to the individual landlord. Instead, the legal requirement is to register each individual lease with the Malta Housing Authority — a mandatory step that applies to all landlords regardless of nationality or residency status.

The law requires landlords to register their rental properties with the Housing Authority, and in an effort to protect both tenants and landlords, it also imposes strict conditions on the terms of residential lease contracts. This obligation applies to all long-term rental contracts under the Private Residential Leases Act (first enacted in 2020 and amended in 2024), and any unregistered contract is treated as legally null and void.

For holiday and short-term tourist lets, a separate licence is an absolute legal requirement. An MTA licence is compulsory for any property offered as Holiday Furnished Premises in Malta and Gozo; it is more than a mere certificate — it represents a formal declaration that the property meets national standards for quality, safety, and hospitality, and operating without a valid MTA licence can attract substantial fines and constitutes a breach of the law.

Foreign landlords who do not hold a Maltese eID can still access the Housing Authority’s online registration portal by creating an account. Foreign owners without a Maltese eID should use the Housing Authority account creation option to gain access to the registration system. Non-resident landlords are subject to precisely the same registration and compliance obligations as those who are resident in Malta.

Anyone found not to have complied with the requirements of the Act can face a fine of between €2,500 and €10,000. Always verify current requirements directly with the Malta Housing Authority or the Malta Tourism Authority, as rules and their enforcement continue to evolve.

How do you obtain a landlord licence or register as a landlord in Malta?

For long-term residential lets, the relevant process is the registration of each individual lease with the Housing Authority. For holiday lets, a separate MTA licence application must be completed. Both processes are now primarily conducted online. The steps below cover long-term lease registration first, followed by the MTA licence procedure.

Registering a long-term residential lease with the Housing Authority

1. Prepare the lease agreement. Draft or align your contract with the Housing Authority’s model contract templates, available at rentregistration.mt. The contract must contain all mandatory clauses: duration, rent amount, payment method, renewal provisions, deposit amount, occupancy details, and a photographic inventory of the property’s contents.
2. Sign the contract. Both the landlord and the tenant must sign the written agreement. Once the lease is properly registered, both parties receive confirmation emails.
3. Register online. The process has been modernised through a shift to mandatory online submissions, making compliance more straightforward for landlords. Log in to the Housing Authority portal using your Maltese eID or a Housing Authority account (available to foreign nationals who do not hold an eID).
4. Submit within the registration window. The registration period for private residential leases has been extended from 10 to 30 days as of 2024, giving landlords greater flexibility to comply. However, some sources indicate that the Minister must still formally confirm the date of full effect, so landlords should act promptly and treat the 10-day window as potentially still operative until full implementation is confirmed.
5. Pay the registration fee. Registering a new lease typically costs €10 (as of 2025, per the Housing Authority’s historic fee schedule); renewal registration costs €5. From 1 September 2025, a €120 late fee applies to registrations submitted after the deadline.
6. Receive your certificate. Once the lease has been registered, both the landlord and the tenant receive a certificate of registration confirming that the lease is legally recorded; this certificate carries importance for both legal and tax purposes.

Obtaining an MTA licence for holiday lets

1. Create an account on the MTA online portal. The application process begins by registering your details and creating an account on the official MTA online portal.
2. Gather the required documents. This is the most critical stage of the application; you will need to prepare and upload a range of documents relating to the property. These typically include proof of ownership, floor plans, evidence of compliance with fire and safety standards, and details of amenities and capacity.
3. Complete and submit the application. Once your documentation is assembled, fill out the full application form on the portal with all required details about your property and pay the applicable application fee. Consult the Malta Tourism Authority website for the current fee schedule, as fees are subject to change and a precise year qualifier cannot be applied with certainty.
4. Undergo a property inspection. After your submission has been processed, an MTA representative will arrange a physical inspection of your property to verify compliance with all applicable standards relating to health and safety, capacity, fire precautions, and required amenities.
5. Display your licence number. Every short-let property must hold a valid Malta Tourism Authority licence and display its registration number on all listings.

What are the rules around deposits in Malta?

The maximum deposit that a landlord may require is one month’s rent — no more. This statutory cap, in force as of 2024, applies to all private residential leases. Unlike the UK and Ireland, which operate government-backed tenancy deposit protection schemes requiring deposits to be held in ring-fenced accounts by an independent third party, Malta does not currently have an equivalent centralised deposit protection system. Deposits are therefore typically retained by the landlord.

The tenant pays a deposit equal to one month’s rent to cover unforeseen costs and any damage caused to the property through the tenant’s own neglect. On the day the rental contract comes to an end, the deposit is returned to the tenant less any outstanding bills or the cost of repairing damage attributable to the tenant. This means that disagreements over deductions are resolved between the parties at the point of termination, rather than through a separate protected scheme.

Should a tenant wish to exit a lease early before the minimum lock-in period has elapsed, there are financial consequences. If the tenant opts to cancel the rental agreement before the permitted notice period has been reached, the landlord may retain an amount not exceeding one month’s rent from the security deposit. This retention right does not apply where the landlord is the party responsible for the breach of contract.

For deposit disputes involving amounts of up to €5,000, claims — including those relating to deposit deductions and maintenance matters — can be submitted through the Housing Authority portal. Larger claims and disputes connected with eviction are handled through the civil courts. Always verify the current rules on deposit handling with the Malta Housing Authority, as legislative amendments may continue to affect how deposits are regulated.

Who is responsible for maintenance and repairs in Malta?

Maltese rental legislation sets out a clear division of responsibility between landlord and tenant, although the precise allocation of costs for different categories of repair should ideally be spelled out explicitly in the lease agreement itself. The contract should identify who bears responsibility for property maintenance costs, repairs, and utilities such as water, electricity, and gas.

As a general principle under Maltese law, landlords are responsible for ensuring the property remains fit for habitation and for undertaking any structural or major repairs that become necessary. The 2024 amendments were directed in part at establishing higher standards for leased properties, strengthening protections for both tenants and landlords. Tenants are generally expected to maintain the property in good order on a day-to-day basis and to cover minor routine upkeep. The mandatory inventory completed at the beginning of the tenancy provides the reference standard against which any damage attributable to the tenant is assessed at the end of the lease.

This allocation of responsibilities broadly mirrors the landlord–tenant maintenance division found in many European civil law countries, although unlike jurisdictions with formal housing standard inspection regimes — such as Ireland’s Residential Tenancies Board or Scotland’s Repairing Standard — Malta does not operate a routine pre-letting condition inspection for private residential lets. The MTA inspection process does, however, apply to licensed holiday premises before a licence is granted.

Certain contractual clauses are legally void even if both parties have signed them — including clauses that seek to exempt landlords from their legal obligations. Landlords cannot contract out of their core maintenance duties by inserting such provisions into a lease. Where disputes over maintenance arise, claims of up to €5,000 covering such issues can be submitted through the Housing Authority portal.

How are letting agents used in Malta, and what do they charge?

Letting agents occupy an active role in Malta’s rental market, particularly for landlords who are non-resident, new to the island, or managing several properties at once. A typical agent will advertise the property, arrange and conduct viewings, screen prospective tenants, handle lease negotiations, and coordinate the registration process. Many agents also provide ongoing property management services — collecting rent, organising repairs, and communicating with tenants on the landlord’s behalf — which is particularly valuable for landlords managing their property from abroad.

When letting through an agency, you will need to pay for their services; typically this amounts to half of one month’s rent plus 18% VAT (as of 2025). In practice, the agent’s fee is often shared between landlord and tenant, though this varies depending on the agent and the outcome of negotiations. Unlike the UK, where since 2019 landlords have been prohibited from passing fees to tenants under the Tenant Fees Act, Malta does not currently have comparable legislation barring agents from charging tenants. Practices differ between agents, so it is important to clarify all fee arrangements in writing before engaging anyone.

There are no nationally mandated caps on letting agent fees in Malta as of 2025. Landlords should compare rates, request a written fee schedule, and check whether an agent holds a relevant professional licence or membership with a recognised property association. The Housing Authority and the Malta Chamber of Commerce can provide guidance on recognised industry bodies and the consumer protections available.

What taxes apply to rental income in Malta?

Rental income earned in Malta is subject to income tax, and landlords may choose between two routes for how that income is treated. When a property is rented out in Malta, the lessor may either opt for the 15% final withholding tax or declare the rental income in the annual tax return and have it assessed at the applicable standard income tax rates.

Option 1: Flat 15% final withholding tax. The final withholding tax of 15% is calculated on the gross rental income received by the lessor; it is a final tax, and no deductions, set-offs, or refunds can be applied against the income. This rate applies to both resident and non-resident recipients of rental income, regardless of whether the taxpayer is an individual or a body corporate. Landlords who elect this option do not need to include rental income in their annual tax return; instead, a TA24 form together with the corresponding tax payment must be submitted by 30 April of the year following the year in which the rental income was received.

Option 2: Standard progressive rates. The 15% rate is optional; a landlord may instead choose to declare net rental income in a tax return and be assessed at the normal progressive rates rather than the flat rate. Under this route, tax is charged at up to 35% on net rental income, but allowable deductions include any rent or ground rent payable in respect of the property and interest payable on capital borrowed to acquire it. A 20% maintenance deduction on residual income is also available under this option.

The 15% tax on rental income applies to both residential property (from 1 January 2014) and commercial property (from 1 January 2016), but excludes rent received from related parties. Landlords letting out Malta Tourism Authority licensed tenements — that is, holiday lets — are not eligible for the 15% final withholding tax. Income from holiday lets is instead subject to standard income tax rates and may also attract VAT.

On the VAT front, the letting of immovable property is generally treated as an exempt supply — no VAT is charged to the tenant, but the landlord cannot reclaim input VAT on related expenditure. However, the letting of property that is required to hold an MTA licence attracts VAT at 7% for the first 12 months of the individual’s residence in Malta.

All landlords — resident and non-resident alike — should submit the TA24 form by 30 April following the relevant tax year. Consult the Commissioner for Revenue (Malta’s tax authority) and a qualified local tax adviser for personalised guidance, particularly given the additional complexity for foreign nationals who may also be subject to tax obligations in their country of residence.

What are the rules around ending a tenancy or evicting a tenant in Malta?

Malta’s rental legislation leans towards tenant protection when it comes to the termination of a tenancy, with defined notice requirements and minimum occupancy periods that restrict a landlord’s ability to recover possession at short notice. These protections were reinforced further by the June 2024 amendments to the Act.

The 2024 amendments updated the notice requirements for lease termination; landlords must now provide a minimum of three months’ notice delivered by registered letter before bringing a lease to an end on grounds of personal use or as a consequence of a property sale or transfer — a change designed to give tenants adequate time to find alternative accommodation.

Tenants are also subject to minimum lock-in periods before they may exit a lease early. For contracts not exceeding 12 months, the tenant may submit one month’s notice after having been in occupation for a minimum of six months; for a 24-month contract, two months’ notice is required after nine months of occupation; and for a contract of 36 months or longer, three months’ notice may be given after 12 months have elapsed.

The law makes it a criminal offence for a landlord to forcibly evict a tenant from a property which the latter occupies as their primary residence. This is a significant protection for tenants. Unlike some other jurisdictions where landlords retain greater flexibility to recover possession swiftly, in Malta any eviction must follow due legal process — typically through the civil courts or the Housing Authority’s adjudicating mechanism.

Leases entered into before June 2024 continue to be governed by the prior rules, allowing landlords and tenants to proceed under their existing terms without immediate disruption; this phased approach prevents upheaval and provides time for all parties to adapt to the new requirements. Landlords holding older tenancies should seek legal advice on precisely how and when the updated rules will apply to them.

For disputes, eviction matters, lease termination disagreements, and claims above €5,000 are referred to the civil courts. Landlords must never resort to self-help eviction methods such as changing locks or removing a tenant’s belongings, as such actions may themselves constitute a criminal offence.

What should expat landlords know about managing property remotely in Malta?

Overseeing a rental property from abroad is entirely feasible in Malta and is a common arrangement among foreign property owners. It does, however, require careful forward planning around legal authorisation, tax compliance, and day-to-day management in order to remain compliant and safeguard your investment.

Power of attorney. Non-resident landlords who wish to authorise a local representative — whether a property manager, solicitor, or trusted individual — to act on their behalf should formalise this arrangement through a notarised power of attorney. This is essential for signing contracts, registering leases, managing repairs, and responding to legal notices during your absence. A Maltese notary can prepare the necessary document.

Property management. A local property management company or licensed letting agent can oversee the entire letting cycle: sourcing tenants, registering the lease, collecting rent, arranging maintenance work, and managing the end-of-tenancy process. Given that all notices must be served by registered letter and that the registration process requires active engagement with the Housing Authority portal, having a dependable local contact is strongly recommended for non-resident landlords.

Tax compliance for non-residents. The 15% tax rate applies to both residents and non-residents who let property situated in Malta. Non-resident landlords must file the TA24 form and pay the applicable tax by 30 April of the year following the relevant tax year, irrespective of where they are based. Malta has double taxation agreements with numerous countries, which may affect whether rental income is also taxable in your country of residence — always take advice from a qualified tax professional in both Malta and your home country.

Repatriating rental income. Malta imposes no restrictions on transferring rental income abroad. As a European Union member state with a well-developed banking sector, moving funds internationally is straightforward. That said, your local bank account arrangements and any currency conversion costs are practical considerations worth addressing in advance.

Staying compliant remotely. A €120 late fee for delayed lease registration takes effect from 1 September 2025, and broader penalties for non-compliance can reach €10,000. Remote landlords should set calendar reminders for registration deadlines, tax filing dates, and lease renewal windows to avoid falling foul of Malta’s increasingly enforced compliance regime.

Frequently asked questions

Can a non-resident own and let property in Malta?

Yes. Non-residents may own and let property in Malta, subject to property acquisition rules for non-EU nationals (a permit may be required to purchase in certain areas). Once ownership has been established, the property may be let under exactly the same rules that apply to resident landlords — including mandatory lease registration with the Housing Authority and payment of rental income tax via the TA24 form. There are no additional letting restrictions that apply specifically to non-residents.

Do I need to register my rental agreement in Malta?

Yes. Malta’s Private Residential Leases Act requires all long-term rental contracts to be registered with the Housing Authority, and unregistered contracts are treated as legally null and void. Registration is completed online through the Housing Authority portal at rentregistration.mt. As of 2024, the registration window is being extended to 30 days from the lease start date, but landlords should act promptly as earlier deadlines may remain operative pending full implementation of the extension.

How much deposit can I charge a tenant in Malta?

The maximum deposit a landlord may charge is one month’s rent (as of 2024). No additional advance rent payments may be demanded. Malta does not currently operate a government-backed deposit protection scheme comparable to those in the UK or Ireland, meaning deposits are typically held by the landlord and returned at the end of the tenancy, net of any justified deductions.

Do I need a local agent to let my property in Malta?

There is no legal obligation to use a letting agent. Landlords are free to source tenants and register leases independently through the Housing Authority’s online portal. However, for non-resident landlords or those unfamiliar with the local market, a licensed agent can provide valuable assistance with tenant sourcing, contract preparation, lease registration, and ongoing property management. Where an agency is used, the standard fee is half of one month’s rent plus 18% VAT (as of 2025).

Can I let my property as an Airbnb or holiday rental in Malta?

An MTA licence is a legal requirement for any property offered as Holiday Furnished Premises in Malta and Gozo. Short letting is treated as a commercial activity, meaning you will need a licence from the Malta Tourism Authority and will be subject to various tax, VAT, and bookkeeping obligations. Listing a property on Airbnb or Booking.com without a valid MTA licence risks significant fines. Applications can be submitted through the MTA portal at mta.com.mt.

How is rental income taxed in Malta for a foreign landlord?

The 15% final withholding tax rate applies to both resident and non-resident recipients of rental income, regardless of whether the taxpayer is an individual or a body corporate (as of 2024). The tax is remitted via the TA24 form, which is due by 30 April of the following year. Alternatively, landlords may declare net rental income in a standard tax return and pay progressive rates of up to 35%, with deductions available for interest costs and a maintenance allowance. Non-residents should also review their home country’s rules on foreign rental income and any applicable double taxation agreement with Malta.

How much notice do I need to give to end a tenancy in Malta?

Under the 2024 amendments, landlords must provide a minimum of three months’ notice by registered letter before terminating a lease on grounds of personal use or owing to a property sale or transfer. Where a landlord fails to issue notice before the lease’s expiry date, the tenancy automatically renews for a further year. Tenants also hold statutory rights to exit early after a minimum occupancy period, the length of which varies according to the duration of the contract.

What happens if I do not register my lease in Malta?

Under Malta’s Private Residential Leases Act, all long-term rental contracts must be registered with the Housing Authority, and any unregistered contract is treated as legally null and void. This means neither party can rely on the agreement in any legal dispute, leaving the landlord particularly exposed. In addition, the 2024 Act introduced stricter penalties for non-compliance, including failure to register a lease; administrative penalties can reach up to €2,329.37, and criminal proceedings can result in fines of up to €10,000. From 1 September 2025, a €120 late registration fee also applies for submissions made after the prescribed deadline.