Imagine this: Youre sitting in your Maltese apartment, the sea view is perfect, the sun is shining—and suddenly the Malta Tourism Authority knocks on your door. The reason? Youre renting out on Airbnb without the required license. What started as a dream income quickly becomes a bureaucratic nightmare with heavy fines. Ill show you how to avoid that and secure your Malta vacation rental license the right way.
After two years on the island and countless conversations with frustrated landlords, I know: Malta may comply with EU rules, but bureaucracy here has its own laws. The good news? With the right preparation, its doable—even as an international landlord.
Malta Vacation Rental License: What you need to know before you start
Since 2016, anyone who rents short term in Malta needs an official license. That includes Airbnb, Booking.com, VRBO, and all other platforms. Sounds annoying? It is. But the alternative—fines up to €23,000—is much worse.
Why get a license for vacation rentals in Malta at all?
Malta wants to control the tourism market and make sure vacation rentals meet certain standards. The Tourism Industry Act of 2002, revised in 2016, regulates everything from fire safety equipment to liability insurance. As a tourist, you enjoy clean, safe accommodation—as a landlord, it means paperwork.
The Malta Tourism Authority (MTA) doesnt just check on suspicion. They have access to all online platforms and can easily identify you. I know landlords who thought theyd go unnoticed—they were wrong.
Who needs a Malta short-term rental license?
The rule is simple: Any rental under 4 months counts as tourist use. That includes:
- Airbnb hosts: Whether single rooms or entire apartments
- Booking.com providers: All apartments and holiday homes
- Private landlords: Even without a platform, as long as youre renting to tourists
- Property management companies: Managing properties for owners
Exception: Long-term rentals over 4 months. But caution—even here, there are traps. If your tenants change every few months, Malta will classify it as tourist use.
Overview of the different license types
Malta distinguishes between various categories:
| License type | For whom | Minimum standards | Typical costs |
|---|---|---|---|
| Self-Catering Accommodation | Whole apartments/houses | Fully equipped kitchen, separate rooms | €600–1,200/year |
| Guesthouse | Multiple rooms, shared areas | Breakfast area, daily cleaning | €1,000–2,500/year |
| Farmhouse | Traditional Maltese houses | Preservation of architecture | €800–1,500/year |
Most international landlords need the Self-Catering Accommodation license. Its the most flexible and covers typical Airbnb situations.
What does that mean for you? First determine your license type before submitting your application. Changing it later costs time and nerves.
Step by Step: How to apply for your Airbnb Malta permit
The application process officially takes 3–4 weeks. In reality, you should allow 2–3 months. Why? Because something is always missing—its just the Malta way.
Preparation: The documents you need
I collect all the documents first, before I even set foot in the MTA offices in Valletta. This saves you frustrating extra appointments:
- Proof of ownership: Purchase contract or rental agreement (with landlords permission to sublet)
- Building plan of the property: From the architect or the Planning Authority
- Compliance certificate: Confirms the building matches the approved plans
- Liability insurance: At least €130,000 for Self-Catering
- Fire Safety Risk Assessment: From a certified expert
- Health and Safety Declaration: Self-certified confirmation of standards
- ID card/passport: For EU citizens, an ID card is enough
The sticking point is usually the building plans. Many owners never received them or lost them. Reordering from the Planning Authority takes 4–6 weeks and costs €25–50.
Insider tip: The Fire Safety Assessment costs €300–500, but its non-negotiable. I recommend Malta Fire Safety Consultants—they know exactly what the MTA wants to see.
The application process at the Malta Tourism Authority
The MTAs offices are in Valletta, Auberge dItalie. Opening hours: Monday to Friday, 8:00–15:30. But beware—on Maltese public holidays its closed, and there are more than you might think.
The process in three steps:
- Submit your application: All documents plus the application form (available online)
- Pay the license fee: Depending on category, €600–2,500
- Wait and inspection: The MTA checks your documents and visits the property
You can also apply online via the Business First Portal. Its theoretically faster, but the system often doesnt work in practice. I prefer to visit in person—that way I can resolve questions immediately.
Inspections and requirements: What to expect
The MTA inspection is more thorough than you expect. Inspectors check not only if you have smoke detectors, but also measure room sizes, check water temperatures, and control escape routes.
Typical stumbling blocks at the inspection:
- Minimum size: Bedrooms must be at least 8 m²
- Windows: Every room needs natural light (Velux windows count)
- Kitchen appliances: Fridge, oven with hob, microwave, and complete cookware
- Fire safety: Smoke detector in every room, fire extinguisher, fire blanket
- First aid: Fully equipped first aid kit
If your property fails, you have 30 days to make corrections. A second inspection costs an additional €50.
What does that mean for you? Plan for inspection costs and possible repairs. Budget at least €500–1,000 for unforeseen expenses.
Malta Tourism License Costs: What you really pay
The official fees are just the tip of the iceberg. I’ll show you the real costs—so you don’t end up suddenly facing a mountain of debt.
Official fees and hidden costs
The license fees depend on property type and size:
| Category | Up to 2 guests | 3–4 guests | 5–6 guests | 7+ guests |
|---|---|---|---|---|
| Self-Catering (Apartment) | €600 | €700 | €850 | €1,000 |
| Self-Catering (Villa) | €800 | €950 | €1,200 | €1,500 |
| Guesthouse | €1,000 | €1,500 | €2,000 | €2,500 |
On top of that come the hidden costs nobody talks about:
- Fire Safety Assessment: €300–500
- Liability insurance: €200–400/year
- Compliance certificate: €150–300 (if necessary)
- Corrections after inspection: €200–800
- Lawyer/advisor: €500–1,500 (for complex cases)
Realistic total costs for a typical two-bedroom apartment: €1,500–2,500 in the first year.
Ongoing costs and renewals
The license is valid for two years, then you must renew. The renewal fee is the same as the original license fee—no discount for existing customers.
Typical annual running costs:
- Insurance: €200–400
- Tourism tax payments: €0.50–5.00 per night (depending on season)
- Compliance updates: €100–300 (if laws change)
- Maintenance and safety: €200–500
The tourism tax is collected from guests and remitted to the government quarterly. If you forget, fines start at €500.
Tax aspects for international landlords
As an international landlord you pay income tax in Malta on your rental income. The rate ranges from 15% to 35%, depending on your total income.
Key tax issues:
- Taxable from the first euro: Even small income must be declared
- Double taxation agreements: Usually prevent being taxed twice in Germany/Austria/Switzerland
- Deductible expenses: License fees, repairs, management charges
- VAT obligation: Above €35,000 annual turnover, you must charge 18% VAT
Practical tip: Get a Maltese tax advisor. The initial consultation costs €200–300, but can save you thousands. I recommend Grant Thornton Malta for international cases.
What does that mean for you? Calculate with not just the license fee, but all costs. Plan at least €2,000–3,000 to get started.
Common pitfalls and how to avoid them
After two years of Malta experience and talking to dozens of landlords, I know the typical traps. Most are avoidable—if you know what to watch out for.
Typical stumbling blocks in the permit process
The most common mistake: Incomplete documents. The MTA is picky but consistent. Miss one stamp or signature and the process starts from scratch.
The top 5 pitfalls:
- Outdated building plans: Have walls been moved or rooms changed? Then you need updated plans.
- Wrong insurance amount: Self-Catering needs at least €130,000; Guesthouses €260,000
- Missing landlord permission: Renting? Your landlord must give written consent
- Insufficient fire safety: Smoke detectors alone arent enough—you need fire extinguishers and a fire blanket too
- Ignored noise regulations: Especially in residential areas there are strict requirements
A landlord from Germany told me: His license was rejected because the architect forgot to include the bathroom window in the plans. Cost to correct: €800 and six weeks delay.
What happens if you violate the rules?
Malta checks regularly and is relentless. The Tourism Compliance Unit can visit unannounced at any time. If you operate without a license, it gets expensive:
- First warning: €2,300 fine
- Repeat offense: €4,600 to €23,000
- Commercial violations: Up to €46,000 plus closure
- Back taxes: On all undeclared income
Especially painful: Malta can audit you up to five years back. A British investor had to pay €18,000 in back taxes plus interest in 2023—for Airbnb earnings from 2018–2022.
Alternative: Property management companies
Is all this too much? Then consider a property management company. They often have blanket licenses and handle everything—for 15–25% of your income.
Advantages:
- No personal license needed
- Professional marketing
- 24/7 guest service
- Cleaning and maintenance
Disadvantages:
- Much less profit
- Less control over your property
- Dependence on management company
Reputable providers in Malta: The Malta Property Company, Chris Borda Properties, QuickLets. But beware—make sure they are actually licensed.
What does that mean for you? Decide consciously: DIY for more work and profit, or use a management service for less stress and less reward.
Is vacation rental in Malta even worth it?
The key question: After license fees, taxes, and effort—whats left? Ill calculate whats realistic for you.
Profit calculation and market analysis
Maltas vacation rental market is booming, but so is the competition. At the end of 2023, there were over 8,500 licensed short-term rentals—a 15% increase from 2022.
Realistic numbers for a two-bedroom apartment in St. Julians:
| Metric | High season (June–September) | Low season (October–May) | Annual average |
|---|---|---|---|
| Price per night | €120–180 | €60–100 | €95 |
| Occupancy | 75–85% | 45–60% | 65% |
| Gross revenue/month | €3,200–4,500 | €1,200–2,200 | €2,200 |
Annual gross revenue: €26,000–28,000
Deductions:
- License and taxes: €3,500–4,500 (15–20%)
- Cleaning and operations: €3,000–4,000 (12–15%)
- Marketing (Airbnb etc.): €2,500–3,000 (10–12%)
- Maintenance and repairs: €1,500–2,500 (6–10%)
Net revenue: €15,000–18,000 (approx. 60–65% of gross)
Competition and occupancy
Malta is small—316 km²—but the supply is dense. In popular areas like Sliema, St. Julians, or Valletta, you compete with hundreds of other landlords.
Success factors for high occupancy:
- Prime location: Walking distance to restaurants, beaches, or attractions
- Modern amenities: Air conditioning is a must, WiFi speed at least 50 Mbit/s
- Professional photos: Invest €300–500 in a photographer
- Flexible pricing: Use tools like PriceLabs for dynamic pricing
- Fast communication: Reply to inquiries within 2 hours
Less successful areas: industrial zones, far from the sea, or poorly connected to the bus network. Malta without a car is tough—your guests will thank you for central locations.
Outlook for Maltas vacation rental market
Malta plans further regulations for the vacation rental market. 2024 already saw stricter noise limits; in 2025, capacity caps for popular areas are expected.
Positive trends:
- Rising tourist numbers: Over 3 million visitors in 2024 for the first time
- Longer stays: The workation trend brings 2–4 week bookings
- Year-round season: Mild winters attract long-term vacationers
Risks:
- Over-regulation: More restrictions possible
- High competition: Market increasingly saturated
- Rising costs: License fees and taxes could rise
My conclusion: Vacation rental in Malta is still worthwhile—but only with a professional approach and realistic expectations. 15–20% return is possible, but not guaranteed.
What does that mean for you? Calculate conservatively, invest in quality, and stay flexible. Malta rewards professional landlords but comes down hard on amateurs.
Frequently Asked Questions
Can I apply for a vacation rental license in Malta as a German/Austrian/Swiss citizen?
Yes, as an EU citizen you have the same rights as Maltese. No residence or work permit is required. Swiss nationals may need to provide additional documents as non-EU citizens, but in principle it is possible.
How long does the license application really take?
Officially 3–4 weeks, realistically 2–3 months. Frequent delays are due to missing documents, MTA queries, or inspection dates. Allow at least 10–12 weeks from application to approval.
What happens if I rent without a license and get caught?
For a first offense you face a €2,300 fine plus closure of your property. For repeat offenses, fines rise to as much as €23,000. Additional back taxes for undeclared earnings may also be due.
Do I have to pay tax in Malta if I live in Germany?
Yes, rental income in Malta is taxable there. Thanks to double taxation agreements, you can usually offset Maltese tax against your German tax. A tax advisor can help optimize your setup.
Can I apply for the license online or do I have to go to Malta?
Theoretically both are possible, but I recommend visiting Valletta in person. The online portal is often unreliable, and in case of questions you save time by being there in person.
What insurance do I need for vacation rental?
At minimum, liability insurance for €130,000 for self-catering accommodation. Contents, glass, and legal insurance are also recommended. Maltese insurers like APS Bank or GasanMamo offer special packages.
Is a property management company worth it?
It depends on your situation. If you live far away or lack time for management, the 15–25% commission might make sense. With high-end properties and good occupancy, self-management earns you much more.
How often is the license checked?
The Malta Tourism Authority carries out spot and event-driven checks. If guests or neighbors complain, theyll check quickly. Licensed properties are checked less often than unlicensed ones.
What is the total cost of a vacation rental license in Malta?
For a typical two-bedroom apartment, budget €1,500–2,500 in the first year. That covers the license fee (€600–700), fire safety assessment (€300–500), insurance (€200–400), and other incidental costs.
Can I use my German/Austrian property experience in Malta?
Basically yes, but Malta has its own laws and customs. Being part of the EU helps with the basics, but local idiosyncrasies like construction or tax law are different. A local advisor saves time and money.
