Authored by the expert who managed and guided the team behind the Malta Property Pack
Everything you need to know before buying real estate is included in our Malta Property Pack
Yes, foreigners can buy and rent out property in Malta in 2026, but the rules depend heavily on whether you purchase in a Special Designated Area or elsewhere on the islands.
Malta's rental market is attractive because of strong tourism, a growing expat community, and no annual property tax for landlords.
We constantly update this blog post to reflect the latest regulations, rent levels, and yield data available.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Malta.
Insights
- Gross rental yields in Malta average around 4% in early 2026, but apartments in Gozo and St. Julian's can reach 4.5% or higher due to lower purchase prices relative to rents.
- Foreigners who buy property outside Special Designated Areas with an AIP permit cannot legally rent it out, which makes SDAs the only practical option for rental investors.
- The 15% final withholding tax on rental income in Malta applies equally to residents and non-residents, making tax planning straightforward for foreign landlords.
- Sliema and St. Julian's command rent premiums of 25% to 40% above the Malta average, driven by seafront access and proximity to business hubs.
- Short-term rental occupancy in Malta averages around 79% annually, with Valletta reaching 86% and generating approximately €30,000 to €45,000 in annual revenue per listing.
- Malta's Private Residential Leases Act caps annual rent increases at 5% and requires mandatory registration with the Housing Authority within 10 days.
- Approximately one in five Airbnb listings in Malta operates without an MTA license, and fines for unlicensed short-term rentals can reach €50,000.
- The typical 2-bedroom apartment in Malta rents for around €1,200 per month in early 2026, but premium areas like Sliema can push that to €1,500 or more.
- Properties near the University of Malta in Msida rent 15% to 20% faster than comparable listings in outer localities due to consistent student demand.
- Peak tenant demand in Malta occurs in September and October, aligning with hiring cycles in the iGaming sector and university term starts.
Can I legally rent out a property in Malta as a foreigner right now?
Can a foreigner own-and-rent a residential property in Malta in 2026?
As of early 2026, foreigners can legally own and rent out residential property in Malta, but only if the property is located within a Special Designated Area (SDA) where no permit restrictions apply.
The most common ownership structure for foreign rental investors in Malta is direct personal ownership of an SDA property, though some use Maltese companies or trusts for larger portfolios or estate planning purposes.
The single most important restriction is that foreigners who purchase property outside an SDA using an Acquisition of Immovable Property (AIP) permit are prohibited from renting it out and can only use it as their personal residence.
If you're not a local, you might want to read our guide to foreign property ownership in Malta.
Do I need residency to rent out in Malta right now?
No, you do not need to be a resident of Malta to own and rent out property, as long as the property is in a Special Designated Area where foreign ownership and rental are unrestricted.
You will need a Maltese tax identification number to declare rental income, which you can obtain through the Commissioner for Revenue even as a non-resident.
A local Maltese bank account is not strictly required by law, but it is highly practical for receiving rent payments, paying utility bills, and managing property expenses efficiently.
Managing a rental property in Malta entirely remotely is feasible, especially with property management companies widely available, though you should budget 8% to 15% of rental income for their services.
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What rental strategy makes the most money in Malta in 2026?
Is long-term renting more profitable than short-term in Malta in 2026?
As of early 2026, short-term rentals in Malta can generate significantly higher gross revenue than long-term rentals, with licensed Airbnb properties in Valletta earning around €35,000 to €45,000 annually compared to €14,000 to €18,000 for equivalent long-term lets.
The typical annual income difference is roughly €15,000 to €25,000 (approximately $16,000 to $27,000 USD) in favor of short-term rentals, though this gap narrows substantially after accounting for management fees, cleaning costs, and higher vacancy risk.
Properties in central tourist areas like Valletta, Sliema, and St. Julian's tend to favor short-term renting financially, while apartments in residential neighborhoods like Mosta or Birkirkara perform better as long-term rentals due to lower tourist traffic.
What's the average gross rental yield in Malta in 2026?
As of early 2026, the average gross rental yield for residential properties in Malta is approximately 3.8% to 4.1%, which is moderate by European standards but competitive for a stable, euro-denominated market.
The realistic low-to-high gross rental yield range that covers most residential properties in Malta is 2.2% to 4.6%, with significant variation depending on location and property type.
Apartments generally achieve the highest gross rental yields in Malta, averaging around 3.8% nationally, compared to just 2.5% for houses, with Gozo apartments reaching the top at approximately 4.6% gross yield.
By the way, we have much more granular data about rental yields in our property pack about Malta.
What's the realistic net rental yield after costs in Malta in 2026?
As of early 2026, the average net rental yield after all costs for residential properties in Malta is approximately 2.5% to 3.2%, which reflects the impact of the 15% withholding tax and maintenance expenses on gross returns.
The realistic low-to-high net rental yield range that most landlords actually experience in Malta is 1.5% to 3.5%, with higher-yield areas like Gozo and Central Malta outperforming premium zones like Sliema and Valletta.
The three main cost categories that reduce gross yield to net yield specifically in Malta are the 15% final withholding tax on gross rental income (which is non-deductible), condominium fees that average €30 to €100 monthly, and the management fees of 8% to 15% that remote landlords typically pay.
You might want to check our latest analysis about gross and net rental yields in Malta.
What monthly rent can I get in Malta in 2026?
As of early 2026, typical monthly rents in Malta are approximately €650 to €800 for a studio (around $700 to $870 USD), €900 to €1,200 for a 1-bedroom (around $980 to $1,300 USD), and €1,100 to €1,500 for a 2-bedroom (around $1,200 to $1,630 USD).
A realistic entry-level monthly rent range for a decent studio in Malta is €550 to €750 (approximately $600 to $815 USD), with lower prices available in areas like St. Paul's Bay and Gozo.
A realistic mid-range monthly rent for a typical 1-bedroom apartment in Malta is €900 to €1,100 (approximately $980 to $1,200 USD), though central locations like Sliema push this to €1,200 or higher.
A realistic mid-to-high monthly rent for a typical 2-bedroom apartment in Malta is €1,200 to €1,600 (approximately $1,300 to $1,740 USD), with premium seafront units in St. Julian's reaching €2,000 or more.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Malta.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Malta versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in Malta in 2026?
What's the total "all-in" monthly cost to hold a rental in Malta in 2026?
As of early 2026, the estimated total "all-in" monthly cost to hold and maintain a typical rental apartment in Malta is approximately €150 to €350 (around $165 to $380 USD), excluding management fees if you hire a property manager.
A realistic low-to-high monthly cost range that covers most standard rental properties in Malta is €100 to €500 (approximately $110 to $545 USD), with the higher end applying to properties with pools, larger condominium fees, or premium insurance requirements.
The single largest contributor to monthly holding costs specifically in Malta is the condominium fee, which averages €30 to €100 monthly and covers shared building maintenance, elevator upkeep, and common area cleaning.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Malta.
What's the typical vacancy rate in Malta in 2026?
As of early 2026, the estimated typical vacancy rate for rental properties in Malta is approximately 5% on average, reflecting strong demand from expats and international workers.
A landlord in Malta should realistically budget for about 0.5 to 1 month of vacancy per year, which accounts for tenant turnover periods and the time needed to find quality replacement tenants.
The main factor that causes vacancy rates to vary across Malta neighborhoods is proximity to employment hubs like Sliema, St. Julian's, and Gzira, where demand from iGaming and financial services professionals keeps vacancy as low as 3% to 4%.
The time of year that typically sees the highest tenant turnover and vacancy in Malta is December through February, when fewer people relocate, while September and October see the strongest demand due to hiring cycles and university term starts.
We have a whole part covering the best rental strategies in our pack about buying a property in Malta.
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Where do rentals perform best in Malta in 2026?
Which neighborhoods have the highest long-term demand in Malta in 2026?
As of early 2026, the top three neighborhoods with the highest overall long-term rental demand in Malta are Sliema, St. Julian's, and Gzira, where vacancy rates are lowest and tenant turnover is fastest.
Families seeking long-term rentals in Malta tend to favor neighborhoods like Swieqi, Mosta, and Naxxar, which offer larger apartments, proximity to schools, and a quieter residential atmosphere.
Students drive the strongest long-term rental demand in Msida, Gzira, and Birkirkara, which are close to the University of Malta and offer more affordable rents than premium coastal areas.
Expats and international professionals in Malta concentrate in Sliema, St. Julian's, and Ta' Xbiex, where proximity to offices, restaurants, and the seafront justifies the 25% to 40% rent premium over other areas.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Malta.
Which neighborhoods have the best yield in Malta in 2026?
As of early 2026, the top three neighborhoods with the best rental yield in Malta are Gozo (particularly Victoria and Għajnsielem), Central Malta (including Birkirkara and Qormi), and South Malta (such as Paola and Fgura).
The estimated gross rental yield range for these top-yielding neighborhoods in Malta is 4.2% to 4.6%, which is approximately 1 to 2 percentage points higher than premium areas like Sliema or Valletta.
The main characteristic that allows these neighborhoods to achieve higher yields is their lower purchase prices per square meter, which have not risen as fast as rents, creating a favorable buy-to-rent ratio that coastal premium areas have lost.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Malta.
Where do tenants pay the highest rents in Malta in 2026?
As of early 2026, the top three neighborhoods where tenants pay the highest rents in Malta are Sliema, St. Julian's, and Valletta, where average apartment rents reach €1,500 per month (approximately $1,630 USD).
The typical monthly rent range for a standard apartment in these premium neighborhoods in Malta is €1,300 to €2,500 (approximately $1,415 to $2,720 USD), with penthouse and seafront units commanding even higher prices.
The main characteristic that makes these neighborhoods command the highest rents is their unique combination of seafront access, walkable urban amenities, and concentration of offices for Malta's iGaming, fintech, and financial services industries.
The tenant profile that typically rents in these highest-rent neighborhoods includes mid-to-senior level professionals in iGaming and financial services, often from the UK, Scandinavia, or other EU countries, who prioritize location and lifestyle over cost savings.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Malta. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Malta in 2026?
What features increase rent the most in Malta in 2026?
As of early 2026, the top three property features that increase monthly rent the most specifically in Malta are air conditioning (essential given summer temperatures), sea views or seafront location, and a private outdoor space like a balcony or terrace.
The single most valuable feature in Malta, sea views, can add a rent premium of approximately 14% to 20%, while properties with pools command around 21% more per night in the short-term rental market.
One commonly overrated feature that landlords invest in but tenants do not pay much extra for in Malta is high-end kitchen appliances, which add cost but rarely translate into proportionally higher rent compared to simply having functional, modern basics.
One affordable upgrade that provides a strong return on investment for landlords in Malta is installing efficient air conditioning units, which costs €500 to €1,500 but is considered non-negotiable by most tenants and directly impacts how quickly a property rents.
Do furnished rentals rent faster in Malta in 2026?
As of early 2026, furnished apartments in Malta typically rent 1 to 3 weeks faster than unfurnished units, particularly in expat-heavy areas like Sliema and St. Julian's where international tenants arrive without furniture.
Furnished apartments in Malta command a rent premium of approximately 10% to 20% over unfurnished equivalents, reflecting the convenience factor for the large share of tenants who are relocating from abroad.
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How regulated is long-term renting in Malta right now?
Can I freely set rent prices in Malta right now?
In Malta, landlords have full freedom to set initial rent prices at whatever level the market will bear, with no government-mandated caps on what you can charge a new tenant when signing a lease.
However, rent increases during an existing tenancy are capped at 5% per year under the Private Residential Leases Act, and increases can only occur once annually if expressly permitted in the lease agreement.
What's the standard lease length in Malta right now?
The standard and legal minimum lease length for private residential rentals in Malta is one year, and any agreement stipulating a shorter term is automatically deemed by law to have a one-year duration unless it qualifies as a short let.
The maximum security deposit a landlord can legally require in Malta is one month's rent (approximately €900 to €1,500 or $980 to $1,630 USD for a typical apartment), which must be held and returned according to the lease terms.
At the end of a tenancy in Malta, landlords must return the security deposit within a reasonable period, minus any documented deductions for damages beyond normal wear and tear or unpaid rent, with disputes handled by the Housing Authority.
We made this infographic to show you how property prices in Malta compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Malta in 2026?
Is Airbnb legal in Malta right now?
Yes, Airbnb-style short-term rentals are legal in Malta, but every property must be registered and licensed with the Malta Tourism Authority (MTA) before accepting bookings.
To operate a short-term rental in Malta, you need an MTA license for "Holiday Furnished Premises," which requires meeting safety standards, paying an annual fee of €130 per unit, and registering with Identity Malta if you are conducting economic activity as a foreigner.
Malta does not impose a strict annual night limit like some European cities, so once licensed, you can rent your property for as many nights as you wish throughout the year.
The most common penalty for operating an unlicensed short-term rental in Malta is fines that can reach up to €50,000, and the MTA has increased enforcement efforts, with approximately one in five listings currently estimated to be unlicensed.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Malta.
What's the average short-term occupancy in Malta in 2026?
As of early 2026, the estimated average annual occupancy rate for short-term rentals in Malta is approximately 79%, which is considered strong by European vacation rental standards.
The realistic low-to-high occupancy rate range that most short-term rentals experience in Malta is 40% to 86%, with well-located and well-managed properties in Valletta and St. Julian's achieving the upper end.
The months that typically see the highest occupancy rates for short-term rentals in Malta are July and August, when summer tourism peaks and properties can achieve 85% to 95% occupancy.
The months that typically see the lowest occupancy rates are January and February, when tourism slows significantly and occupancy can drop to 50% to 65% even in prime locations.
Finally, please note that you can find much more granular data about this topic in our property pack about Malta.
What's the average nightly rate in Malta in 2026?
As of early 2026, the estimated average nightly rate for short-term rentals in Malta is approximately €112 (around $121 USD), though prime areas like Valletta average €137 ($148 USD) and St. Julian's reaches €133 ($144 USD).
A realistic low-to-high nightly rate range that covers most short-term rental listings in Malta is €70 to €190 (approximately $76 to $207 USD), with basic apartments at the lower end and premium seafront properties at the top.
The typical nightly rate difference between peak season (July-August) and off-season (January-February) in Malta is approximately €40 to €70 (around $44 to $76 USD), with summer rates often 40% to 60% higher than winter rates.
Is short-term rental supply saturated in Malta in 2026?
As of early 2026, the short-term rental market in Malta shows signs of moderate saturation in prime tourist areas, with over 9,000 active Airbnb listings competing for bookings across the small island nation.
The current trend in active short-term rental listings in Malta is still growing, though at a slower pace than previous years, as regulatory scrutiny and licensing requirements have reduced the influx of new unlicensed operators.
The neighborhoods in Malta that are most oversaturated with short-term rentals are Valletta (where nearly one in five dwellings is listed on Airbnb), Sliema, and St. Julian's, where competition keeps occupancy strong but limits pricing power.
Neighborhoods in Malta that still have room for new short-term rental supply include Gozo (particularly outside Victoria), the South of Malta (like Marsaskala and Birżebbuġa), and Northern areas like Mellieħa where tourism demand is growing faster than supply.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Malta, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Global Property Guide | Publishes consistent, methodology-documented yield data across 80+ countries. | We used their Malta yield tables to establish gross rental yield benchmarks by property type and location. We cross-referenced their data with local sources to validate accuracy. |
| Malta Housing Authority | The official government body regulating private residential leases in Malta. | We used their registration data and FAQ documents to explain lease requirements and tenant protections. We verified deposit rules and contract registration procedures through their official guidance. |
| Malta Commissioner for Revenue | The official tax authority responsible for rental income taxation in Malta. | We used their TA24 guidance to explain the 15% withholding tax option for landlords. We verified that this rate applies equally to residents and non-residents. |
| Airbtics | A leading short-term rental data provider with verified Airbnb performance metrics. | We used their Malta market data to estimate occupancy rates, ADR, and annual revenue potential. We compared their figures across multiple localities to identify performance patterns. |
| Expatax Malta | A Malta-based tax and property advisory firm with direct market access. | We used their yield analysis to compare apartments versus houses by region. We validated their rental price data against other sources for consistency. |
| Central Bank of Malta | Malta's central banking authority with research capabilities on housing markets. | We used their Airbnb policy note to understand short-term rental market structure. We referenced their analysis of listing ownership patterns and pricing characteristics. |
| Frank Salt Real Estate | One of Malta's largest and most established real estate agencies with 50+ years of market presence. | We used their rental guides to explain lease regulations and tenant profiles. We referenced their neighborhood insights to identify demand patterns by tenant type. |
| Legal 500 Malta | A respected international legal directory with verified country-specific guides. | We used their Malta real estate chapter to explain AIP permit requirements and SDA rules. We verified foreign ownership restrictions and company structure options through their analysis. |
| Malta Government Services (Servizz.gov.mt) | The official government portal for licensing and permit applications in Malta. | We used their MTA licensing information to explain short-term rental registration requirements. We verified the application process and fee structure for holiday premises. |
| Investropa | A real estate data provider specializing in European markets with regular updates. | We used their Malta rent data to establish current price ranges by apartment size and neighborhood. We referenced their vacancy rate estimates and tenant demand analysis. |
We have made this infographic to give you a quick and clear snapshot of the property market in Malta. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
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