Given Malta’s superb location in the Mediterranean Sea, this island home offers a varied and attractive selection of properties for rent.

THE RENTAL PROCESS

There are several different rental contracts with long term rentals in Malta being the most popular. The number of bedrooms required and the location of the property have a significant impact on the price.

Short Term

  • Contract: for the term of 6 months.
  • Who is it for: it’s ideal for non-residents employed 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. Maybe you want to rent before choosing a property to buy
  • Termination Policy: as a tenant, you can stop your contract 1 month from the starting date. Following the obligatory month, the lessee may be released from the contract but is obliged to give at least one week’s prior notice to the lessor by means of a registered letter.
  • This contract cannot be renewed

Long Term

  • Contract: at least a 1-year agreement.
  • Termination policy:

For landlords

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. ​​​​

For tenants

One year Rental Agreement

  • The first six months are mandatory for the lessee;
  • Following the obligatory six months, the lessee may be released from the contract by giving at least one (1) month notice to the lessor by means of a registered letter;
  • If the lessor does not intend to renew the lease, the lessee must be informed three (3) months prior to the termination of the contract by means of a registered letter;
  • If the lessor fails to notify the lessee within the established period, the lease is renewed automatically for a year.

Two year Rental Agreement

  • The first nine months (9) are mandatory for the lessee;
  • Following the obligatory nine months, the lessee may be released from the contract by giving at least two (2) months’ notice to the lessor by means of a registered letter;
  • If the lessor does not intend to renew the lease, the lessee must be informed three (3) months prior to the termination of the contract by means of a registered letter;
  • If the lessor fails to notify the lessee within the established period, the lease is renewed automatically for a year.

Three year Rental Agreement

  • The first twelve months (12) are mandatory for the lessee;
  • Following the obligatory twelve months, the lessee may be released from the contract by giving at least three (3) months’ notice to the lessor by means of a registered letter;
  • If the lessor does not intend to renew the lease, the lessee must be informed three (3) months prior to the termination of the contract by means of a registered letter;
  • If the lessor fails to notify the lessee within the established period, the lease is renewed automatically for a year.

Other Renting Expenses You Need To Budget For

When signing a contract for a long term rental, you have to put down  1 month’s rental as a deposit.This  is required by the landlord and held as a security deposit to cater for any unpaid bills or damage to the property. If you are making use of an estate agency then an additional payment of half of a months rental plus Vat needs to be paid to them. Other expenses are related to utility bills, dependent on the consumption, usually in the range of €50-100 monthly.

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.

The Favoured Suburbs In Malta And Long-Term Rentals

Sliema and St Julian’s are two coastal towns that are always in demand, and guarantee a very lively environment, particularly during the summer months. The most common and available properties in these areas are usually apartments. Rental fees range in the region of around €1,000 per month and even up to double that amount if the property is a penthouse or has multiple bedrooms.

If you are after a quieter area, you can opt for the North of Malta, in the picturesque and much sought after village of Mellieha and its surrounding villages such as Qawra, Bugibba and St Paul’s Bay. Mellieha, for example, offers property that range somewhere between €700 and €1,300 per month, dependant on the size and the amenities offered. In this area, you can expect to find anything ranging from detached bungalows, detached or semi-detached maisonettes, penthouses and apartments in both traditional, as well as modern buildings.

Finding one or two bedroomed properties that fall beneath the €650 figure per month is an easier feat in Malta’s central, western and southern regions, where one-bedroom prices start at €500 per month. In Valletta, properties are likely to be found for €1,000 monthly. Luxury apartments could even go for around €2000 monthly, while seaside villas in the sought-after areas, could be offered at up to €4000 monthly.

What You Must Know In Order To Satisfy Malta’s Residency Requirements With A Rental Property

If you are considering a residency scheme, it is good to know that there is a specific minimum value needed if you choose to do the rental option.  If you are considering renting a property in the north of Malta  your rental contract must be for € 12 000 per annum. You have to also sign a 5 year lease contract. If you are renting in the south of Malta or in Gozo your rental requirement is € 10 000 per annum also with a 5 year lease contract.

Read more about residency and citizenship requirements: http://www.maltainvest.co.za/residency-citizenship/