Renting Out Property in Malta

Renting out property in Malta involves different rules depending on whether you’re letting long-term to a tenant or offering short-let holiday accommodation - and both routes have registration requirements with real consequences for skipping them.

Long-term residential leases

Under Malta’s Private Residential Leases Act, all long-term rental contracts must be registered with the Housing Authority within 30 days of signing. An unregistered lease is legally null and void - a real risk for landlords relying on the contract to enforce terms or evict a non-paying tenant.

Registering a lease of 2 years or more can also make you eligible for a tax rebate that reduces your effective rental income tax rate below the standard 15% flat rate, with the exact rebate depending on the lease duration and number of bedrooms.

Tax on rental income

Landlords have two options, chosen annually:

• 15% final withholding tax on gross rental income - simple, and usually the better choice for straightforward buy-to-let income.
• Standard progressive income tax rates, declaring rental income (net of allowable deductions) in your annual return.

Whichever option you choose, you must register with the Commissioner for Revenue, and rental income tax for a given year is due by 30 April of the following year.

Short-let holiday accommodation

Renting short-term - via platforms like Airbnb or Booking.com - is regulated separately by the Malta Tourism Authority (MTA), and the rules tightened significantly under the Tourism Accommodation Regulations 2026, effective 15 June 2026:

• No property may be advertised or operated as a short-let without a valid MTA licence - advertising alone, before a licence is issued, is itself a breach.
• Applications require proof of valid development permission and certification that the property meets approved planning standards - an unsanctioned property (see Property Due Diligence Checklist) cannot be licensed.
• Licensed properties must meet minimum standards: smoke and carbon monoxide detectors, a fire extinguisher, first aid kit, and - for self-catering - linen and towels provided.
• Individual bookings are capped at 90 consecutive days.
• Every licence holder must designate someone contactable 24/7 to handle guest issues.
• Operating without a licence carries a 3-year disqualification from applying for one.

Which route suits you

Long-term letting under a registered lease suits investors prioritising stable, lower-effort income and simpler tax treatment. Short-let holiday letting can generate higher gross income in tourism-driven localities but comes with materially higher regulatory, insurance and day-to-day-management obligations under the 2026 rules - factor licensing lead time into any short-let business plan rather than assuming you can list immediately after completion.