A Guide To Renting And Letting A Property In Malta
When you relocate to Malta, you want to find the best set-up. Quickly you will come across questions regarding rental agreements, as there are 3 different types of private rental agreements. Which one is best for you?
The Maltese real estate market can be a bit of a maze for newcomers, but don't worry - we've got navigated through Malta's real estate market before, so make sure to check it out too.
Below we list different types of rental agreements, their contract duration, and termination policy.
3 Types Of Private Rental Agreements
1. Shared Space
- Contract: for a term of 6 months or less.
- What is it: it's a lease for a separate space in an apartment or a building. It usually comes with a shared kitchen, and/or bathroom.
- Who is it for: it's a great solution for digital nomads, who do not need a lot of space to live in.
- Termination Policy: as the tenant, you can end your contract with 1 week’s prior written notice. The landlord cannot prevent you from doing so in any shape or form. It’s important to remember that once the a expires, you can't renew it without a roll-over continuation.
2. Short Term
- Contract: for the term of 6 months.
- Who is it for: it's ideal for non-residents employed/has errands in Malta for a period of less than 6 months, eg. temporary contract, students, or any other instance when you don’t intend to stay for more than 6 months.
- Termination Policy: as a tenant, you can stop your contract as soon as 1 month from the starting date. The tenant must send a 1-week prior written notice to the landlord. The landlord, again cannot ask for any sort of compensation or penalty for it. It is less of a commitment, and less binding.
3. Long Term
- Contract: at least a 1-year agreement.
- Termination policy:
A landlord must send a prior written notice to a tenant. Without it, we can assume renewal by the law by another year. The Landlord must send at least 3-month prior written notice to a tenant. Otherwise, the lease is going to be automatically renewed for another year.
Following is a list of termination dates. Note that the landlord may keep up to 1 month's rent from the deposit:
- 6 months for a term of less than 2 years (1 month's prior notice to the landlord),
- 9 months for a term of over 2 years, but less than 3 years (2-month prior notice to the landlord),
- 12 months for a period of 3 years or more (3-month prior notice to the landlord).
Note that you as a tenant can still withdraw at any time by giving written notice to a landlord:
- at least 1 month before for a period of less than 2 years,
- at least 2 months before for a period of 2 years or more (but less than 3 years),
- and at least 3 months before for a period of 3 years or more. 3
How much is a security deposit in Malta?
In Malta, a rental deposit in Malta is equivalent to a month's rent. If your rent is €1000/ month then your rental deposit is €1000.
If you're using a real estate agency, there are also some additional fees: admin fee and finder fee. The landlord holds onto the rental deposit until the end of the tenancy. The deducted amount depends on the damages, bills, and the terms of your rental agreement - we dived deeper into when the deposit is refundable, so make sure to check that out too.
Are you allowed to pay for rent upfront?
Yes, it's legal for a landlord to request rent in advance from their tenants. The maximum amount of rent that can be requested in advance is limited to two months' worth of rent.
This is in accordance with the provisions of the Civil Code, specifically Article 1556B, which states that a landlord may not require a tenant to pay rent in advance for more than two months.
What documents and information do I need to let and rent a property?
- Full name, identity card/passport number, mobile number, and address of all tenants and the landlord.
- The rent amount and payment method.
- Required notice periods.
- The length of the tenancy.
- Electricity and water meter reading.
- Details about repairs and maintenance.
Does a landlord pay tax on the profit?
A landlord pays tax on the net rental income. That means a landlord's total income minus any allowable expenses.
How much profit is good on a rental property?
2%. The 2% rule is that monthly rent for an investment property should be equal to or no less than 2% of the purchase price.
We are here to help, too. Let us know and best of luck! 😊
1 Eurostat, ”House or Flat - Owning or Renting”, Housing Overview. 2021 interactive edition. Nov/Dec 2021
2 Private Residential Leases Act. Jan 2022
3 Mondaq, “Malta: A Landlord And Tenant’s Guide To Maltese Rules On Residential Leases”, J. Scicluna, D. Cutajar, N. Catania. May 2020