Renting as a Housing Alternative in Malta – New Rent Regulations Proposed

Malta Property Tax & Regulations

29th August 2019

Renting as a Housing Alternative in Malta –  New Rent Regulations Proposed
The Maltese Government’s push for reform in the rental property market has resulted in new regulations being proposed with the stated intention of stabilising and further regulating a market which was loosely regulated when compared to other markets in Malta.   If approved by Parliament, the new rent regulations are expected to come into force on 1st January 2020.  

What is being proposed?

  1. All rental agreements concluded after 1st January 2020, and all rental agreements already concluded and expiring in the year 2021 or later, should be registered with the Housing Authority and non-compliance will result in fines;
  2. Long-term rental agreements will be encouraged through fiscal incentives;
  3. The Regulations will not capture or in any way effect tourism rentals; Short let contracts will be captured by the Regulations, but will be set at a six-month maximum duration, will only be provided to non-resident workers, non-resident students, and non-residents who are seeking to establish a long-term residence in Malta;
  4. While the Regulations will not seek to regulate the price of rental property, allowing the market to fluctuate freely, annual rental increases will be regulated;
  5. A Landlord intending to evict a Tenant or a Tenant wishing to terminate the lease agreement will be bound to give notice in accordance with the periods which will be prescribed in the Regulations;
  6. Landlords are also offered some protection through the Courts being empowered to evict a Tenant at the first hearing, doing away with the long delays usually associated with Court proceedings;
  While Malta continues to be a nation of homeowners, these Regulations are expected to regulate and consequently support the growth of the rental property market as an alternative to home ownership, by curtailing abuse and tax evasion.   These regulations should also be seen within the Government’s general vision for Malta’s property market, including the Government’s last Budget proposal to introduce the concept of Real Estate Investment Trusts (REITs) into Maltese law. REITs invest in real estate from which income is generated, and can be expected to flourish within an economy such as Malta’s where the property market is strong, growing year to year, and properly regulated to curtail abuse and uncertaintly.   To learn more about new rules and regulations, follow the link:
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