Can I Rent Out My Property in Malta? A Notary’s Perspective under Maltese Law

If you’re a property owner in Malta—or thinking of becoming one—you may be considering renting out your property for long-term or short-term use. But is it as straightforward as handing over the keys and collecting rent? As a notary public, I often advise clients navigating the complexities of Maltese property law. Here’s what you need to know before you rent out your property in Malta.

1. Yes, You Can Rent—But Know Your Obligations

In principle, any property owner in Malta, whether Maltese or foreign, can rent out their property. However, the process is governed by the Private Residential Leases Act (Cap. 604) of the Laws of Malta and other legislation regulating lease agreements, especially if you’re considering short-term rentals.

2. Types of Leases: Residential vs. Short-Let

• Long-Term Residential Leases: These must be registered with the Housing Authority. The law mandates a minimum term of six months, with specific rights and obligations for both landlords and tenants.
• Short-Term or Holiday Rentals: These fall under the purview of the Tourism Authority and require a license. If you plan to let your property on platforms like Airbnb, you must obtain a Holiday Furnished Premises license and adhere to safety, hygiene, and taxation requirements.

3. Taxation Considerations

Income from rental properties is taxable. You can opt to be taxed at a flat rate of 15% on gross rental income or declare it as part of your total income under the progressive tax system. Consult with your accountant to assess which is more beneficial for you.

4. Foreign Owners: Any Restrictions?

EU/EEA nationals can generally buy and rent out property in Malta without restrictions. Non-EU nationals need an Acquisition of Immovable Property (AIP) permit and are typically restricted to owning one property which cannot be rented out unless it’s in a Special Designated Area (SDA), where multiple properties can be bought and rented freely.

5. Drafting a Proper Lease Agreement

A notary can help ensure your lease agreement is legally sound and protects your rights. It should include:

• Clear rental terms
• Notice periods
• Maintenance responsibilities
• Deposit and refund conditions
• Termination clauses

Need Assistance with Renting Out Your Property in Malta?

Ensuring that your rental property is legally compliant protects both you and your tenants. Whether you are renting out your home for the first time or managing multiple properties, seeking professional notarial guidance is key.

Visit our offices in Victoria, Gozo or Guardamangia, Malta for expert assistance with your property conveyancing needs.

Book a Consultation Today! Secure your property rental with confidence.