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

MALTA LUXURY REAL ESTATE NEWS

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: https://www.maltasothebysrealty.com/contact-us/
Back to Archive

Share this Article

Malta Sotheby's International Realty

Launched on the Maltese islands in 2013, Malta Sotheby's International Realty had one clear vision and goal in mind – to offer our clients the highest level of commitment and quality of service in the high-end residential and commercial real estate market throughout the Maltese Islands. We derive our success from local expertise, professionalism, commitment, and discretion to meet any client’s needs. We understand the importance of finding a home that not only suits your needs but suits your vision for the future – a place that facilitates comfort, creativity and familiarity. We realise that a home is much more than a place to live - it is a sanctuary from where we build families and dreams. Our real estate professionals will guide you towards finding your ideal home throughout the entire buying and selling process. The culture of Malta SIR is defined by our knowledgable and dedicated diverse team which spans over multiple nationalities, whether you are a vendor or a buyer we speak your language.

The listing information set forth on this site is based upon information which we consider reliable, but because it has been supplied by third parties to our franchisees (who in turn supplied it to us) , we cannot represent that it is accurate or complete, and it should not be relied upon as such. The offerings are subject to errors, omissions, changes, including price, or withdrawal without notice. All dimensions are approximate and have not been verified by the selling party and cannot be verified by Sotheby’s International Realty Affiliates LLC. It is recommended that you hire a professional in the business of determining dimensions, such as an appraiser, architect or civil engineer, to determine such information.