Requirements for a Short-Term Rental Permit in Malta

The short-term rental market in Malta is a thriving sector, driven by the island's enduring popularity as a Mediterranean holiday destination. However, operating a "Holiday Furnished Premises" is a regulated activity. To ensure your property is legally compliant and guest-ready, you must obtain a licence from the Malta Tourism Authority (MTA).

Below is a guide to the essential requirements and steps for securing a short-term rental permit in Malta.

1. Understanding the MTA Licence

Under Chapter 409 of the Laws of Malta, any property rented to tourists for short stays must be licensed by the MTA. This ensures that the accommodation meets specific health, safety, and quality standards.

2. Core Documentation Required

When applying for a Holiday Furnished Premises licence, you will need to compile a comprehensive dossier of documents:

• Proof of ownershipA copy of the final deed of sale or a contract of lease
• Site and floor plansDetailed layouts signed and stamped by an architect, showing room dimensions and bed counts
• Planning Authority permitsProof that the property has the necessary development permits for residential use
• Energy Performance Certificate (EPC)A valid certificate indicating the energy efficiency of the building
• Insurance coverageA third-party liability insurance policy, providing coverage for at least €250,000

3. Health, Safety, and Capacity Standards

Safety is a priority for the MTA. Your property must satisfy the following:

• Fire safetyA Fire Safety Certificate from an approved engineer is mandatory, verifying smoke detectors, extinguishers, and emergency routes
• Capacity limitsCurrent regulations generally limit occupancy to two people per bedroom and a maximum of six per unit unless otherwise specified
• Waste managementYou must have a clear waste management plan for guests to follow, complying with local council collection schedules

4. The Application Process

The process is primarily digital and completed via the MTA Online Portal.

1. 1

   Online registration: Create an account and submit property details.

2. 2

   Submission of documents: Upload all required certificates and plans.

3. 3

   Payment of fees: Fees vary based on property type (for example, apartment versus villa).

4. 4

   The physical inspection: An MTA representative will visit to verify the layout and safety equipment.

5. 5

   Issuance of licence: Once approved, you will receive your official licence number, which must be displayed on all online listings.

5. Ongoing Obligations: Tax and Eco-Contribution

Securing the permit is only the first step. To remain compliant, owners must adhere to Maltese fiscal regulations:

• VAT registrationShort-term holiday lets are subject to a 7% VAT rate. You must register with the Commissioner for Revenue.
• Eco-ContributionLandlords must collect an Environmental Contribution from guests over 18. The current rate is €0.50 per night, capped at €5.00 per stay. Rates are scheduled to increase to €1.50 per night (capped at €22.50) from 1 July 2026.
• Income taxYou can typically opt for a final withholding tax rate of 15% on gross rental income.

Basis of Information and External Links

This guide is based on the following official sources and legislation:

• Primary legislationChapter 409: Malta Travel and Tourism Services Act
• Specific rulesS.L. 409.11: Holiday Premises Regulations
• Licensing authorityMalta Tourism Authority (MTA) Licensing
• Taxation guidanceCommissioner for Revenue, Rental Income Tax
• Support servicesFor end-to-end management of these requirements, contact us today.

By meeting these requirements, you can operate with peace of mind, knowing your property is a fully legal and professional part of Malta's tourism industry.