Holiday rentals Malta: Licences for Airbnb and similar platforms for international landlords – The complete guide 2025

Malta vacation rental license: What international landlords need to know

Since 2019, Malta requires anyone renting out accommodation for less than 90 days to have an official permit. This applies not only to Maltese residents, but to any international owner – regardless of whether you live in Germany, Italy, or anywhere else.

What exactly counts as a vacation rental in Malta?

Malta defines vacation rental (in English: vacation rental or short-term letting) as any rental of living space for payment for a maximum of 90 consecutive days. This includes:

• Airbnb and Booking.com rentals
• Direct bookings via your own website
• Renting to digital nomads for 1-3 months
• Workation accommodation
• Even renting to friends for cost-sharing

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

Why Malta regulates so strictly

Malta has a housing shortage. With 1,300 residents per square kilometer, it is one of the most densely populated countries in the world. The Malta Tourism Authority (MTA) and the Planning Authority work hand in hand to ensure that housing is not withdrawn from the local rental market.

According to the MTA (2024), more than 3,200 illegal vacation rentals have already been uncovered and fined between €1,500 and €50,000.

What does this mean for you? Don’t postpone licensing. The longer you wait, the more likely a check becomes – and the more expensive it can get.

MTA license vs. Planning Authority: Which permit do you really need?

This is where things get complicated, and I speak from experience: Even Maltese lawyers are sometimes unsure which permit is needed in which case. There are two different authorities with different responsibilities.

Malta Tourism Authority (MTA) license

The MTA license covers tourist use. You always need it 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 even be used for vacation rental. This depends on zoning – some areas are closed for commercial use.

Here’s the tricky part: In many residential zones (especially in residential zones), vacation rentals are completely prohibited. This especially applies to apartments in purely residential neighborhoods of Sliema, St. Julian’s, and Msida.

Which license do you need as an international landlord?

As an international owner, you generally need both permits:

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

I recommend talking to a local lawyer before submitting any applications. What cost me €800 in legal advice saved me €3,000 on wrong applications and repeated submissions later.

What does this mean for you? Expect at least €300–€1,000 in license costs in the first year, depending on your property and planned scope of rental.

Step-by-step guide: How to apply for the Malta Vacation Rental License

I’ll guide you through the process I went through myself. Spoiler: It takes longer than expected, and requires more documents than you think.

Phase 1: Preparation and collecting documents

Before submitting your first application, you’ll need these documents:

• Proof of ownership (Title Deed or Purchase Agreement)
• Property floor plan
• Compliance Certificate (building completion certificate)
• Insurance policy for holiday rentals
• Copy of your ID/passport
• Proof of address (utility bill or rental contract from your home country)

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

Phase 2: Planning Authority application

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

The application fee is €234 plus possible architect fees if floor plan modifications are needed.

Phase 3: On-site inspection

An inspector will visit and check:

• Fire safety (smoke detectors, extinguishers)
• Minimum space per person (14 sqm in bedrooms)
• Accessibility and barrier-free access
• Noise protection and compatibility with the neighborhood

Small warning: The inspector was 45 minutes late in my case and in a bad mood. Be prepared and stay polite, even if Maltese punctuality leaves something to be desired.

Phase 4: Applying for the MTA license

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

You must specify:

• Maximum number of guests
• Planned rental period per year
• Amenities and services
• Emergency contact details (important: must be available 24/7)

Phase 5: Registration 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 cannot earn rental income.

What does this mean for you? Plan for at least 12–16 weeks for the entire process. I needed 14 weeks, and that was fast.

Costs and time commitment: What the Malta vacation rental license really costs you

Here are the real costs – not the sugar-coated numbers some advice agencies give.

One-time costs in the first year

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

Ongoing annual costs

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

Ongoing costs per year: €600–€1,500

Time commitment – the underestimated factor

What nobody tells you upfront: The time commitment is considerable. I kept a diary:

• Collecting documents: 8–12 hours (spread over weeks)
• Trips to authorities: 6–8 hours (don’t underestimate waiting lines)
• Online applications: 4–6 hours (the portals aren’t intuitive)
• Communication/follow-ups: 3–5 hours
• Inspections/rectifications: 2–4 hours

Total: 23–35 hours of pure work effort

What does this mean for you? If you’re not on site, you’ll either need to plan several trips to Malta or hire a local agent (costs another €1,000–€2,000).

Common mistakes with the Malta Airbnb license – and how to avoid them

In Malta Facebook groups and at official appointments I have met so many landlords who made the same mistakes. Here are the biggest pitfalls:

Mistake 1: Rent first, license later

The classic. Ill see if renting is worth it, then Ill apply for the license. Bad idea. Malta systematically checks Airbnb listings and cross-checks them with license databases.

Consequence: Retroactive fines from the very first day of illegal rental.

Solution: Apply for the license before your first listing.

Mistake 2: Specifying the wrong property category

Some try to save with a residential license, even though they operate commercially. The dividing line: If you rent for more than 90 days per year or have multiple units, you’re considered commercial.

Consequence: License becomes invalid, new application required.

Solution: Make an honest estimate of how often you want to rent out.

Mistake 3: Ignoring neighborhood rules

Many apartment buildings have house rules against vacation rentals. The Planning Authority explicitly asks whether other owners have objections.

Solution: Speak in advance with neighbors and the building management.

Mistake 4: Inadequate insurance

Normal contents insurance is not sufficient. You need a special short-term letting insurance that covers damages by guests and liability cases.

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

Mistake 5: No 24/7 accessibility

Malta requires someone to be always reachable for emergencies. For international landlords without a Maltese residence, this can be 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? Take a systematic approach and don’t be tempted by seemingly easy shortcuts. Better to do it right and sleep peacefully later.

Tax obligations for international vacation rental landlords in Malta

This gets really complex, and I strongly recommend consulting a Maltese tax advisor. Still, here is an overview of the most important points.

Income tax on rental income

As an international landlord, you are taxable in Malta on your rental income. The tax rate depends on your income level:

VAT registration from €37,000 onwards

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

Use double taxation agreements

Malta has double taxation agreements with most EU countries. This means: You don’t pay tax twice, but can offset Maltese tax against your home country tax liability.

Important: You must still file tax returns in both countries.

Deductible expenses

You can deduct the following expenses from your rental income:

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

Practical tips for tax handling

1. Separate bank account: Handle all rental income and expenses through a dedicated account
2. Keep receipts: Keep all invoices and receipts (digital is sufficient)
3. Quarterly reserves: Set aside 20–30% of rental income for taxes
4. Tax advisor: Appoint a local tax advisor (costs €300–€600 per year, but saves more)

What does this mean for you? With €15,000 per year in 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 bracket.

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 do not have special rules for vacation rentals.

Can I apply for the MTA license online?

Partially. You fill out the application online, but you must be present in person for the inspection and document submission 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 about the property.

What happens if you violate the licensing obligation?

Fines between €1,500 and €50,000, depending on the case. For repeated violations, Malta may also impose a rental ban.

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

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

Can I rent out my apartment without a Compliance Certificate?

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

Do I need a Maltese lawyer for licensing?

Not necessarily, but it’s recommended for more complex cases or if you’re not on site. The consulting fees usually pay off by avoiding costly mistakes.

How often does Malta check for illegal vacation rentals?

Systematic online checks are ongoing. On-site inspections mostly happen after complaints or with suspicious ads lacking a license number.

Can I rent year-round with a tourism license?

Yes, but each individual booking may not exceed 90 consecutive days. Longer-term bookings fall under regular rental law.

What does a Property Management Service cost in Malta?

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