Holiday Rentals in Malta: Licensing for Airbnb and Similar Platforms for International Landlords – The Complete Guide 2025

Malta Vacation Rental License: What International Landlords Need to Know

Since 2019, the rule in Malta is: Anyone renting accommodation for less than 90 days needs an official permit. This applies not just to locals but to all international owners—no matter if you live in Germany, Italy, or elsewhere.

What Exactly Qualifies as a Vacation Rental in Malta?

Malta defines vacation rental (in English, “vacation rental” or “short-term letting”) as any paid letting of living space for up to 90 consecutive days. This includes:

• Renting via Airbnb and Booking.com
• Direct bookings through your own website
• Letting to digital nomads for 1–3 months
• Workation stays
• Even renting to friends with a cost-share agreement

What many people don’t know: Even if you only rent out occasionally—say, four weeks in the summer—you still need a license. The Maltese authorities are uncompromising on this.

Why Malta Regulates So Strictly

Malta has a housing shortage. With 1,300 inhabitants per square kilometer, the country is among the most densely populated in the world. The Malta Tourism Authority (MTA) and the Planning Authority work hand-in-hand to prevent apartments from being taken off the local rental market.

According to the MTA (2024), over 3,200 illegal vacation rentals have already been uncovered and hit with fines ranging from €1,500 to €50,000.

What does this mean for you? Don’t put off licensing. The longer you wait, the more likely it is you’ll be checked—and the more expensive it gets.

MTA License vs. Planning Authority: Which Approval Do You Really Need?

Here’s where it gets complicated (speaking from experience): Even Maltese lawyers sometimes aren’t sure which approval is needed in which case. There are two different authorities with separate responsibilities.

Malta Tourism Authority (MTA) License

The MTA license covers tourist use. You always need this when renting to tourists or visitors. The license costs €100 per year and must be renewed annually.

Planning Authority Permit

The Planning Authority checks whether your property can be used for vacation rentals at all. That depends on the zoning—some areas are off-limits to commercial use.

Here’s the kicker: In many residential zones, vacation rentals are completely forbidden. This especially affects apartments in purely residential districts of Sliema, St. Julian’s, and Msida.

Which License Do You Need as an International Landlord?

As an international owner, you typically need both permits:

1. First get the Planning Authority permit (approx. €200–€500)
2. Then the MTA license (€100–€500 depending on category)

My advice: Speak with a local attorney before submitting any applications. The €800 I spent on consultation later saved me €3,000 in incorrect applications and re-filings.

What does this mean for you? Be prepared for at least €300–€1,000 in licensing costs in the first year, depending on your property and planned letting volume.

Step-by-Step Guide: Applying for a Malta Vacation Rental License

I’ll walk you through the process I went through myself. Spoiler: It takes longer than you’d expect and requires more documentation than you think.

Phase 1: Preparation and Document Collection

Before you even submit your first application, you’ll need the following documents:

• Proof of ownership (Title Deed or purchase contract)
• Property floor plan
• Compliance Certificate (building completion certificate)
• Vacation rental insurance policy
• Copy of your ID/passport
• Proof of address (utility bill or rental agreement from your home country)

The Compliance Certificate is often the biggest hurdle. Many older buildings don’t have one, and getting it afterwards can take months.

Phase 2: Planning Authority Application

You submit your application online via the PA portal. My tip: Upload all documents in the highest possible quality. The authority rejects applications for poor image quality.

The application fee is €234 plus potential architect fees if the floor plan needs changes.

Phase 3: Site Inspection

An inspector visits and checks for:

• Fire safety measures (smoke detectors, fire extinguisher)
• Minimum area per person (14 sqm in bedrooms)
• Accessibility
• Noise protection and neighborhood compatibility

Heads-up: My inspector showed up 45 minutes late and was in a bad mood. Be prepared and stay polite—even if Maltese punctuality sometimes leaves a lot to be desired.

Phase 4: Apply for the MTA License

With the Planning Authority permit in hand, you head to the MTA. The online application is much more user-friendly than the PA process.

You’ll need to provide:

• Maximum guest capacity
• Planned letting period per year
• Facilities and services
• Emergency contact details (important: must be reachable 24/7)

Phase 5: Register with Identity Malta

As an international landlord, you must also register with Identity Malta as a “person carrying out an economic activity.” This costs another €100, but without this registration, you are not allowed to earn income from short-term rentals.

What does that mean for you? Allow at least 12–16 weeks for the full process. I managed it in 14 weeks, which was considered fast.

Costs and Time Commitment: What the Malta Vacation Rental License Really Costs

Here are the real costs—not the sugarcoated numbers some consultants quote.

One-Off Costs in the First Year

Total first-year costs: €1,934 – €4,734

Annual Ongoing Costs

• MTA license renewal: €100–€500
• Insurance: €200–€400
• Bookkeeping/tax advisor: €300–€600

Ongoing annual costs: €600 – €1,500

Time Commitment – The Underrated Factor

What nobody tells you in advance: It’s a time-consuming process. I kept a diary:

• Document collection: 8–12 hours (spread over several weeks)
• Dealing with authorities: 6–8 hours (don’t underestimate waiting times)
• Online applications: 4–6 hours (the portals are far from intuitive)
• Correspondence/follow-ups: 3–5 hours
• Inspection/touch-ups: 2–4 hours

Total: 23–35 hours of actual work

What does this mean for you? If you’re not in Malta, you’ll need to schedule several Malta trips or hire a local agent (which will run you another €1,000–€2,000).

Common Mistakes with the Malta Airbnb License – and How to Avoid Them

I’ve met so many landlords in Malta Facebook groups and at government offices who made the same mistakes. Here are the biggest pitfalls:

Mistake 1: Renting First, Licensing Later

The classic. “I’ll see if renting is worth it, then get the license.” Bad idea. Malta systematically cross-checks Airbnb listings with their licensing databases.

Consequence: Fines retroactively from day one of illegal letting.

Solution: Apply for the license before posting your first listing.

Mistake 2: Choosing the Wrong Property Category

Some try to save money by applying for a residential license even though they operate commercially. The cut-off: If you rent for more than 90 days per year or have multiple units, you’re commercial.

Consequence: License becomes void, you must reapply.

Solution: Estimate honestly how often you’ll let out your property.

Mistake 3: Ignoring Neighborhood Rules

Many apartment buildings have house rules banning short-term rentals. The Planning Authority specifically asks if other owners have objections.

Solution: Speak to your neighbors and building management in advance.

Mistake 4: Incomplete Insurance

A standard homeowner’s policy does not suffice. You need dedicated Short-Term Letting Insurance, which covers guest damage and liability.

Solution: Ask local insurers for STL policies (Mapfre Malta, GasanMamo are specialists).

Mistake 5: No 24/7 Emergency Contact

Malta requires someone to be reachable for emergencies at all times. As an international landlord without residency, this is a challenge.

Solution: Hire a property management service or appoint a local contact (costs 8–15% of rental income).

What does this mean for you? Be methodical and don’t get tempted by seemingly easy “shortcuts.” Do it right the first time so you can sleep soundly later.

Tax Obligations for International Vacation Rental Hosts in Malta

Now it gets truly complex and I strongly recommend consulting a Maltese tax advisor. Still, here’s an overview of the essentials.

Income Tax on Rental Income

As an international landlord, you are liable to Maltese tax on your rental income. The tax rate depends on the amount you earn:

VAT Registration Above €37,000

If your annual rental income exceeds €37,000, you must register for VAT. This means:

• 18% VAT on all bookings
• Monthly VAT returns
• Professional bookkeeping required

Utilizing Double Taxation Agreements

Malta has double taxation agreements with most EU countries. Meaning: You won’t pay tax twice, and can offset Maltese tax in your home country.

Important: You still have to file tax returns in both countries.

Deductible Expenses

You can deduct the following from your rental income:

• License fees (MTA, Planning Authority)
• Insurance premiums
• Property management fees
• Cleaning costs
• Repairs and maintenance
• Advertising fees (Airbnb fees, photography)
• Pro-rated utilities (electricity, water, internet)

Practical Tax Handling Tips

1. Separate bank account: Run all rental income and expenses through a dedicated account
2. Collect receipts: Save every invoice and receipt (digital copies suffice)
3. Quarterly reserves: Set aside 20–30% of your income for taxes
4. Tax advisor: Hire a local tax professional (costs €300–€600 per year but typically saves you more)

What does this mean for you? With €15,000 in annual rental income, you can expect a total tax burden of €1,500–€2,500, depending on your deductible expenses and your home country’s tax rate.

Frequently Asked Questions

Do I need a Malta vacation rental license as an EU citizen?

Yes, the licensing requirement applies to all landlords regardless of nationality. EU citizens have no special exemptions for short-term letting.

Can I apply for the MTA license online?

Partially. You fill out the application online but must be present for the inspection and to submit documents in person (or appoint a local representative).

How long is a Malta Vacation Rental License valid?

The MTA license must be renewed annually. The Planning Authority permit is valid indefinitely as long as nothing changes with the property.

What happens if I breach licensing requirements?

Fines range from €1,500 to €50,000 depending on the case. For repeat offenses, Malta can also ban you from letting your property.

Do I have to pay taxes in Malta as an international landlord?

Yes, you pay Maltese income tax on your rental income from Malta. You can usually offset this in your home country.

Can I rent my apartment without a Compliance Certificate?

No, the Compliance Certificate is a prerequisite for any license. For older buildings without one, you must obtain it retroactively.

Do I need a Maltese lawyer for licensing?

Not strictly required, but recommended for complex cases or if you’re not in Malta. The consulting fee often pays off by avoiding costly mistakes.

How often does Malta check for illegal vacation rentals?

Online checks are ongoing. On-site inspections usually follow complaints or suspicious listings with no license number shown.

Can I let my property all year round with a tourism license?

Yes, but each booking may last a maximum of 90 consecutive days. Longer stays are considered standard tenancy and fall under different regulations.

How much does a property management service in Malta cost?

Between 8% and 15% of your rental income, depending on the scope of service. Full service (including guest support and cleaning) typically runs 12–15%.