Compare Listings

New Rental Reform

New Rental Reform

A new law will be regulating the rental housing market without imposing entry level rents

  • Annual rental increases capped at 5%
  • Minimum residential lease of one year
  • Landlords will get tax credits for long -term contracts
  • All rental contracts will have to be registered

The government is proposing that residential rental contracts will have a minimum duration of one year with property owners being offered tax credits for longer lets.

This law will be presented to the parliament due to government initiatives to regulate further the rental sector.

The Private Residential act will not impose a cap on rental payments.  The landlords will be allowed to fixt the initial rent. However, for contracts that are two years of longer, annual rental increases will be capped at 5%.

The new law will not apply to pre-1995 leases.

 

All rental contracts will have to be registered including inventory of the residence.  Failing to do so will result in hefty penalties.

Landlords pay a 15% withholding tax on rental income and with this new law in force, tax evasion will be controlled.

The law will not cover tourist accommodation, this will be dealt with a separate law that will provide exceptions for short lets which have to be for a minimum of 6 months.

Landlords will receive yearly tax credits for rental contracts that are for two years and longer.  The credits range from €200 for a one bedroom apartment on a two -year lease to €500 for a three-bedroom apartment on a three-year lease.

Landlords are to give a 3 month notice to tenants if they do not intend to extend rental contracts.

In the cases where a landlord fails to register a rental contract, the Housing Authority can initiate criminal action but the authority will also proceed judicially in the tenant’s name to impose a three – year lease at 75% the market value.

This measure is intended to protect tenants and give them an incentive to report abuse. 

The new law is expected to come into force on 1 January next year with a transition period for running contracts.  By January 2021, all rental contracts have to be registered and adhere to the new regime.

 

One – year  contracts

  • Compulsory registration
  • Declare deposit and inventory
  • Landlord free to fix initial rent
  • Tenant cannot terminate in first two months
  • No tax incentive
  • Landlord has to give three months’ notice of termination
  • No rental increase

 

Two – year contract

  • Compulsory registration
  • Declare deposit and inventory
  • Landlord free to fix initial rent
  • Tenant free to terminate with two months’ notice
  • Tax incentive for landlord
  • Landlord has to give three months’ notice of termination
  • One rental increase of not more than 5%

 

Room renting and short lets

  • Six months’ minimum that cannot be extended
  • Seven days’ notice by tenant to end the contract
  • These apply only to non-resident workers, non-residential students, non-residents not seeking to establish long-term residence

Your Favorites

Recently Viewed

Xemxija – Apartment

€275,000

3 beds • 1 bath • 127 m²

Apartment

St Pauls Bay – Apartment

€1,000/Monthly

3 beds •

Apartment

Bugibba – Apartment

€1,000/Monthly

2 beds •

Apartment

Mellieha – Penthouse

€1,250/Monthly

3 beds • 1 bath •

Penthouse

Iklin – Apartment

€950/Monthly

3 beds • 1 bath •

Apartment

Quick Contact







[cf7sr-simple-recaptcha]

Submit Enquiry




I understand that my personal data shall be processed and transmitted in accordance with the General Data Protection Regulation (GDPR).

Input this code: To use CAPTCHA, you need Really Simple CAPTCHA plugin installed.