Short Let vs Long Let in Malta: Which Earns More?

It is the question every Malta property owner asks: should I rent my property short-term to tourists or long-term to a residential tenant? The answer is not as simple as comparing headline numbers. Both strategies have distinct revenue profiles, cost structures, and risk factors that affect your true net income.

This guide provides a thorough, honest comparison using real market data from Malta's rental market in 2025. We will analyse a typical two-bedroom apartment in Sliema as our reference property, then discuss how the calculation changes for different locations and property types.

The Revenue Comparison

Long-Let Revenue (2-Bed Apartment, Sliema)

• Monthly rentEUR 1,200-1,600 (depending on condition, floor, and exact location)
• Annual gross incomeEUR 14,400-19,200
• OccupancyTypically 95-100% (long-term tenants on 12-month contracts)
• Vacancy risk2-4 weeks between tenancies, typically once per year

Short-Let Revenue (Same Property)

• Average nightly rateEUR 100-160 (blended across seasons)
• Average annual occupancy70-80%
• Annual gross incomeEUR 25,500-46,700
• Cleaning feesEUR 40-70 per turnover (often partially passed to guests)

On a gross revenue basis, short-lets typically generate 60-150% more income than long-lets for the same property. But that is only half the story.

The Cost Comparison

Long-Let Costs

• Agency fee (if applicable)5-8% of annual rent, or one month's rent upfront
• InsuranceEUR 200-400/year
• MaintenanceEUR 500-1,500/year (tenant covers day-to-day; owner covers structural)
• Total annual costsEUR 1,500-3,500
• Cost as % of revenue10-20%

Short-Let Costs

• Management fee15-20% of revenue (if professionally managed)
• CleaningEUR 3,000-5,000/year (net of guest cleaning fee contributions)
• UtilitiesEUR 1,800-3,000/year (owner typically covers water and electricity)
• Linen and consumablesEUR 800-1,500/year
• InsuranceEUR 400-700/year (higher for short-let coverage)
• MaintenanceEUR 1,500-3,000/year (higher wear and tear from frequent guest turnover)
• MTA licence and complianceEUR 300-500/year
• Total annual costsEUR 10,000-18,000
• Cost as % of revenue35-50%

The Net Income Verdict

Using the midpoint of our ranges for a 2-bedroom Sliema apartment:

• Long-let net incomeEUR 16,800 gross - EUR 2,500 costs = EUR 14,300 net (before tax)
• Short-let net incomeEUR 35,000 gross - EUR 14,000 costs = EUR 21,000 net (before tax)

In this scenario, the short-let strategy generates approximately 47% more net income. However, the advantage varies significantly by location, property type, and management quality.

When Long-Let Makes More Sense

Short-let is not always the better option. Long-let rental may be more suitable when:

• You live abroadManaging short-let operations remotely without a professional manager is extremely difficult
• The property is in a non-tourist areaInland locations like Mosta, Attard, or Zebbug have limited short-let demand
• You want zero hassleLong-let is genuinely passive income after the tenant moves in
• The property needs significant upgradingShort-let guests expect higher standards than long-term tenants
• You value income predictabilityLong-let provides a fixed monthly income with minimal variation

When Short-Let Delivers Superior Returns

• Prime tourist locationsSliema, St Julian's, Valletta, Bugibba seafront, and Gozo farmhouses
• Well-presented propertiesModern, well-furnished apartments with good photography consistently outperform
• Professional managementProperties managed by experienced teams achieve 20-35% higher revenue than self-managed ones
• Properties with unique featuresSea views, rooftop terraces, pools, or historic character add significant premium to nightly rates
• Owners who want flexibilityShort-let allows you to use the property yourself during gaps between bookings

The Hybrid Approach

Some Malta property owners adopt a hybrid strategy: short-let during the peak season (May-October) and a medium-term let (3-6 months) during winter. This captures the high summer rates while avoiding the low-season vacancy risk. It requires more management effort but can optimise annual revenue.

Gobnb's full management service includes strategies for both pure short-let and hybrid approaches, tailored to each property's location and market dynamics.

Tax Considerations

Both rental strategies are subject to tax in Malta. Long-let income is typically taxed at 15% final withholding tax on gross rent, the same rate available for short-let income. However, the higher gross revenue of short-let means the absolute tax amount is higher. For a detailed breakdown of tax obligations, see our guide on tax obligations for short-let property owners in Malta.

Making Your Decision

The right strategy depends on your personal circumstances, risk tolerance, and how actively you want to be involved. For most properties in prime Malta locations, short-let with professional management delivers the highest net returns. But long-let remains a valid, lower-effort alternative that provides stable, predictable income.

If you are unsure which approach suits your property, request a free rental analysis from Gobnb. We will provide a detailed comparison of projected short-let and long-let income for your specific property, including all costs, seasonal projections, and net income estimates.