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
If you're considering buying rental property in Malta, understanding what returns you can realistically expect is essential before making any investment decision.
This article breaks down the current rental yields across Malta's different neighborhoods and property types, so you can see where your money will work hardest.
We keep this blog post constantly updated with the latest data and market shifts.
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
- Malta's gross rental yields average around 3.9% in early 2026, but the spread between prime areas like Valletta (1.7%) and rental hubs like St Julian's (4.0%) is massive, meaning location choice can double your returns.
- The 15% final tax on gross rental income in Malta is deceptively simple but cuts deeper than it looks, because it applies before any expenses, pushing net yields down to around 2.2% on average.
- St Paul's Bay alone accounts for over 9,400 registered rental contracts, making it by far Malta's largest rental market and one of the most liquid places to find tenants quickly.
- Malta's national dwelling vacancy rate looks high on paper (often cited in the high teens), but actual rental vacancy for correctly priced long-lets sits closer to 5% in active markets.
- Smaller units like studios and one-bedroom apartments consistently deliver better yield per square meter in Malta, because tenants pay for location and functionality rather than extra space.
- Gozo offers around 4.1% gross yields for long-let properties, making it one of the few areas in Malta where yields meaningfully beat the national average.
- New sea transport links connecting Sliema, Buġibba, and Mġarr Gozo are already in procurement, and these connectivity upgrades could push rents higher in those micro-areas once operational.
- Malta's rent-to-price ratio of about 4% translates to a price-to-rent multiple of 25, which is high compared to many European markets and explains why yields feel compressed.
What are the rental yields in Malta as of 2026?
What's the average gross rental yield in Malta as of 2026?
As of early 2026, the average gross rental yield in Malta sits at around 3.9%, which means for every €100,000 you invest in property, you can expect roughly €3,900 in annual rent before expenses.
Most typical residential properties in Malta fall within a realistic gross yield range of 3.6% to 4.3%, depending on the neighborhood and property type you choose.
Compared to many other European Union countries, Malta's average gross yield is on the lower side, largely because property prices have risen faster than rents over the past few years.
The single biggest factor influencing gross yields in Malta right now is the extreme variation in purchase prices between prime coastal areas and more affordable rental hubs, where the same rental income generates very different returns depending on how much you paid for the property.
What's the average net rental yield in Malta as of 2026?
As of early 2026, the average net rental yield in Malta is approximately 2.2%, which is what remains after accounting for taxes, management costs, and other recurring expenses.
The gap between gross and net yields in Malta typically runs between 1.5 to 2.0 percentage points, which is a significant haircut that catches many first-time investors off guard.
The expense that most significantly reduces gross yield to net yield in Malta is the 15% final tax on rental income, which is calculated on gross rent rather than profit, making it particularly impactful for landlords.
Most standard investment properties in Malta generate net yields somewhere between 1.9% and 2.6%, with the range depending mainly on how efficiently you manage operating costs like condominium fees, maintenance, and vacancy periods.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Malta.
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.
What yield is considered "good" in Malta in 2026?
A gross rental yield of 4.5% or higher is generally considered "good" by experienced investors in Malta, because it meaningfully exceeds the national average and suggests you've found a property where the rent-to-price ratio works in your favor.
The threshold that separates average-performing properties from high-performing ones in Malta is around 5.0% gross yield, and achieving this usually requires either buying in less glamorous but high-demand rental localities or finding undervalued properties in established areas.
How much do yields vary by neighborhood in Malta as of 2026?
As of early 2026, the spread in gross rental yields between the highest-yield and lowest-yield neighborhoods in Malta is dramatic, ranging from around 1.7% in prime areas to over 4.0% in rental-heavy localities.
The neighborhoods that typically deliver the highest rental yields in Malta are working rental hubs like St Julian's, Qawra, St Paul's Bay, and parts of Gozo, where property prices remain reasonable but tenant demand stays consistently strong.
The neighborhoods that typically deliver the lowest rental yields in Malta are prestigious coastal areas like Valletta and Sliema, where heritage value and scarcity push purchase prices far higher than rents can justify from a pure yield perspective.
The main reason yields vary so dramatically across Malta is that purchase prices in prime areas reflect lifestyle premium and capital appreciation expectations, while rents are constrained by what tenants can actually afford to pay each month.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Malta.
How much do yields vary by property type in Malta as of 2026?
As of early 2026, gross rental yields across different property types in Malta range from under 2% for luxury penthouses and villas in prime areas to around 4% or slightly higher for well-located apartments and maisonettes in rental-heavy neighborhoods.
The property type that currently delivers the highest average gross rental yield in Malta is the standard apartment or maisonette in high-demand localities, because these units match what most tenants are actively searching for.
The property type that currently delivers the lowest average gross rental yield in Malta is the premium villa or penthouse, where the purchase price premium far exceeds the rental premium tenants are willing to pay.
The key reason yields differ between property types in Malta is that rental demand concentrates heavily in the mid-market apartment segment, while luxury properties attract a thinner pool of tenants who don't proportionally increase their rent budgets.
By the way, you might want to read the following:
What's the typical vacancy rate in Malta as of 2026?
As of early 2026, the typical rental vacancy rate in Malta for a correctly priced long-let property is around 5%, meaning your property might sit empty for roughly two to three weeks per year between tenants.
Vacancy rates across different neighborhoods in Malta realistically range from 4% in the most liquid rental hubs like St Paul's Bay and Sliema to 7% or higher in less connected or oversupplied areas.
The main factor that currently drives vacancy rates up or down in Malta is pricing accuracy, because properties listed at market-appropriate rents in high-demand localities find tenants quickly, while overpriced units can sit vacant for months.
Malta's rental vacancy rate is relatively low compared to the headline dwelling vacancy statistics you might see quoted nationally, because those figures include second homes and properties not actively offered for rent.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Malta.
What's the rent-to-price ratio in Malta as of 2026?
As of early 2026, the average rent-to-price ratio in Malta is approximately 0.33% monthly, which translates to about 4.0% annually when you divide annual rent by purchase price.
A rent-to-price ratio of around 0.4% monthly or higher (roughly 5% annually) is generally considered favorable for buy-to-let investors in Malta, and this ratio is essentially the same as your gross rental yield since both measure rent relative to price.
Malta's rent-to-price ratio is lower than many other Mediterranean investment destinations, which means the price-to-rent multiple of about 25 indicates that property prices have run ahead of what rental income alone can justify.
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.
Which neighborhoods and micro-areas in Malta give the best yields as of 2026?
Where are the highest-yield areas in Malta as of 2026?
As of early 2026, the three highest-yield areas in Malta are St Julian's, Qawra, and St Paul's Bay, all of which combine steady rental demand with property prices that haven't reached the premium levels of more prestigious coastal areas.
In these top-performing rental areas, investors can typically expect gross yields in the range of 3.6% to 4.1%, with Gozo also offering similar returns for those willing to invest outside the main island.
The main characteristic these high-yield areas share is a large concentration of working renters and year-round tenant demand, rather than the seasonal tourism or lifestyle buyer premium that dominates areas like Valletta or Sliema.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Malta.
Where are the lowest-yield areas in Malta as of 2026?
As of early 2026, the lowest-yield areas in Malta are Valletta and Sliema, where prestigious addresses and heritage properties command prices that rental income simply cannot match from a yield perspective.
In these low-yield areas, gross rental yields typically fall between 1.7% and 2.2%, which means investors are essentially paying for capital appreciation potential rather than current income.
The main reason yields are compressed in Valletta and Sliema is that purchase prices reflect scarcity, prestige, and international buyer demand, while monthly rents are still limited by what the local and expatriate tenant pool can afford.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Malta.
Which areas have the lowest vacancy in Malta as of 2026?
As of early 2026, the three neighborhoods with the lowest residential vacancy rates in Malta are St Paul's Bay, Msida, and Gżira, all of which have dense rental ecosystems with thousands of active contracts and quick tenant turnover.
In these low-vacancy areas, landlords typically experience vacancy rates between 3% and 5%, meaning properties rarely sit empty for more than a few weeks when priced correctly.
The main demand driver that keeps vacancy low in these Malta neighborhoods is employment access, because these areas sit close to business districts, hospitals, and universities where workers and students need affordable, well-connected housing year-round.
The trade-off investors typically face when targeting these low-vacancy areas is that high liquidity often comes with moderate yields rather than exceptional returns, because the same demand that fills units quickly also supports steady price growth.
Which areas have the most renter demand in Malta right now?
The three neighborhoods currently experiencing the strongest renter demand in Malta are St Paul's Bay, Sliema, and St Julian's, which together account for a huge share of the country's registered rental contracts.
The renter profile driving most of the demand in these areas is a mix of foreign workers, young professionals, and international students who need furnished apartments close to employment hubs and amenities.
In these high-demand Malta neighborhoods, well-priced rental listings typically get filled within one to three weeks, especially for two-bedroom and three-bedroom apartments that match what most tenants are searching for.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Malta.
Which upcoming projects could boost rents and rental yields in Malta as of 2026?
As of early 2026, the three most significant infrastructure projects expected to boost rents in Malta are the new fast ferry connections between Sliema, Buġibba, and Mġarr Gozo, plus the major Manoel Island mixed-use redevelopment near Gżira.
The neighborhoods most likely to benefit from these projects are Sliema, St Paul's Bay (including Buġibba and Qawra), Gżira, and the Gozo ferry corridor, where improved connectivity should increase tenant demand and support higher rents.
Once these projects are completed, investors might realistically expect rent increases of 5% to 10% in directly affected micro-areas, though the boost will depend on how much the new infrastructure actually improves daily commuting and lifestyle convenience.
You'll find our latest property market analysis about Malta here.
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What property type should I buy for renting in Malta as of 2026?
Between studios and larger units in Malta, which performs best in 2026?
As of early 2026, smaller units like studios and one-bedroom apartments generally outperform larger units in Malta when measuring rental yield and occupancy rates together.
Studios and one-bedroom apartments in Malta typically generate gross yields around 4.0% to 4.5% (roughly €800 to €1,200 monthly rent, or $870 to $1,300 USD), while larger three-bedroom units often yield closer to 3.5% despite higher absolute rents.
The main factor explaining why smaller units outperform is that tenants in Malta pay a premium for location and basic functionality rather than extra space, so the rent per square meter drops significantly as unit size increases.
One scenario where larger units might be the better investment in Malta is when targeting families or shared households who need multiple bedrooms, especially in areas like Msida or Swieqi where family-sized rentals are scarce and command premium rates.
What property types are in most demand in Malta as of 2026?
As of early 2026, the most in-demand property type in Malta is the two-bedroom or three-bedroom apartment in a well-connected locality, which matches what the largest segment of active renters are searching for.
The top three property types ranked by current tenant demand in Malta are standard apartments, maisonettes, and furnished shared-space units, all of which dominate the Housing Authority's registered contract volumes.
The primary trend driving this demand pattern in Malta is the concentration of foreign workers and young professionals who need affordable, move-in-ready housing close to employment centers rather than large family homes or luxury penthouses.
One property type that is currently underperforming in demand and likely to remain so in Malta is the detached villa, which attracts a very thin pool of tenants and often sits vacant longer while generating lower yields relative to its high purchase price.
What unit size has the best yield per m² in Malta as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Malta is between 50 and 80 square meters, which typically covers efficient one-bedroom and compact two-bedroom apartments.
For this optimal unit size in Malta, the typical gross rental yield per square meter works out to roughly €15 to €20 per square meter monthly (approximately $16 to $22 USD or €180 to €240 per square meter annually), though this varies significantly by neighborhood.
The main reason smaller units under 50 square meters or larger units over 100 square meters tend to have lower yield per square meter is that studios can be harder to rent in some localities while large units spread their premium across too much space that tenants don't fully value.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable 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 costs cut my net yield in Malta as of 2026?
What are typical property taxes and recurring local fees in Malta as of 2026?
As of early 2026, the main recurring tax for rental property owners in Malta is the 15% final tax on gross rental income, which for a typical apartment generating €12,000 annually means paying approximately €1,800 per year (around $1,960 USD or €1,800 EUR).
Beyond income tax, landlords in Malta must budget for annual condominium and common-area charges, which typically range from €300 to €1,200 per year (approximately $325 to $1,300 USD) depending on building amenities like lifts, pools, and security.
Together, these taxes and fees typically represent between 18% and 25% of gross rental income in Malta, making them a significant factor in the gap between gross and net yields.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Malta.
What insurance, maintenance, and annual repair costs should landlords budget in Malta right now?
The estimated annual landlord insurance cost for a typical rental apartment in Malta ranges from €200 to €450 (approximately $220 to $490 USD), while houses and villas typically cost €400 to €900 annually to insure.
For maintenance and repairs in Malta, the recommended annual budget is between 0.8% and 1.2% of your property's value, which for a €250,000 apartment means setting aside roughly €2,000 to €3,000 per year (around $2,180 to $3,270 USD).
The type of repair expense that most commonly catches Malta landlords off guard is air conditioning maintenance and replacement, because the Mediterranean climate means AC units run hard and fail more frequently than owners expect.
Adding it all together, landlords in Malta should realistically budget between €2,500 and €4,000 annually (approximately $2,720 to $4,360 USD) for combined insurance, maintenance, and repair costs on a typical rental apartment.
Which utilities do landlords typically pay, and what do they cost in Malta right now?
In Malta, tenants typically pay their own electricity and water bills for standard long-let arrangements, but landlords often cover utilities in corporate lets, furnished short-term rentals, or "all bills included" deals that are common in shared housing.
When landlords do cover utilities in Malta, the estimated monthly cost for a typical occupied apartment runs between €80 and €160 (approximately $87 to $175 USD), with the main variables being air conditioning usage and occupancy levels.
What does full-service property management cost, including leasing, in Malta as of 2026?
As of early 2026, full-service property management fees in Malta typically run between 8% and 12% of monthly rent, which for an apartment renting at €1,000 per month means paying roughly €80 to €120 monthly (approximately $87 to $130 USD).
On top of ongoing management, the typical leasing or tenant-placement fee in Malta is around 45% of one month's rent plus VAT, so placing a tenant in that same €1,000 apartment would cost roughly €530 (approximately $580 USD) as a one-time charge.
What's a realistic vacancy buffer in Malta as of 2026?
As of early 2026, landlords in Malta should set aside approximately 8% of annual rental income as a vacancy buffer, which works out to roughly one month's worth of rent kept in reserve.
In practice, landlords in high-liquidity Malta localities like St Paul's Bay, Msida, or Sliema typically experience two to four vacant weeks per year between tenants, though this assumes the property is correctly priced and well-maintained.
Buying real estate in Malta can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
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 |
|---|---|---|
| Malta Housing Authority - Registered Rental Contracts 2024H1 | This is an official Government of Malta dataset built from the mandatory rent register that all long-let landlords must use. | We used it to anchor typical rents by locality and unit size, and to identify which neighborhoods have the most rental activity. We also used its locality list to ground our neighborhood examples throughout the article. |
| Malta Housing Authority - Compliance Report | This is an official regulator-style report about how the private rental sector operates under Maltese law. | We used it to understand how the registered long-let market functions and why registered rents are a reliable reference point. We also used it to frame vacancy and turnover behavior in Malta's regulated environment. |
| Housing Authority - 7 Key Insights | This report was published by the Housing Authority and co-authored with economists from the Central Bank and University of Malta. | We used it to describe renter demand dynamics including who rents and renewal intentions. We used it to keep the article grounded in real-life tenant behavior rather than just abstract indices. |
| NSO Malta - Property Price Index | This is Malta's official statistics office and represents the standard public reference for house price movements. | We used it to triangulate the direction and pace of purchase price growth, which directly affects yields. We used it to avoid relying solely on private portals for price data. |
| Central Bank of Malta - Real Economy Indicators | This is Malta's central bank, and its property indicators are widely cited and methodologically documented. | We used it to cross-check price momentum against NSO data and align our early 2026 assumptions with late-2025 official figures. We also used it to explain the difference between advertised and transacted prices. |
| Central Bank of Malta - House Price Index Methodology | This is a primary-source methodology note that explains exactly how the Central Bank constructs its property price data. | We used it to justify how listing-based price data should be interpreted when pairing prices with asking rents. We used it to keep our yield calculations transparent and defensible. |
| NSO Malta - HICP November 2025 | This is official inflation reporting that helps distinguish nominal from real performance in the property market. | We used it to contextualize rent growth versus overall inflation and explain why rents can feel like they're moving faster than the headline numbers suggest. |
| Eurostat - House Prices and Rents | Eurostat is the EU's official statistics authority and provides comparable rent and price series across all member states. | We used it as a benchmark to show how Malta's rental dynamics compare to broader EU trends. We used it to keep our narrative grounded in internationally comparable measures. |
| Global Property Guide - Malta Rental Yields | This is a long-running international property data publisher with a transparent yield formula and regularly published snapshots. | We used it to anchor numerical gross yield levels and the spread between areas like Sliema, Valletta, and St Paul's Bay. We then adjusted those figures to early 2026 using official rent and price growth signals. |
| PwC Malta - Real Estate Survey 2025 | PwC is a top-tier consultancy, and their survey explicitly references Housing Authority rent statistics. | We used it as a sanity check that official rent growth figures align with what market participants actually expect. We used it to phrase investor and agent expectations accurately. |
| Servizz.gov.mt - Lease Registration | This is the official Maltese government service portal that describes landlords' legal obligations. | We used it to explain the practical rule that shapes the long-let market, specifically that private leases must be registered. We used it to keep advice actionable for non-professional landlords. |
| Malta Tax & Customs Administration - 15% Rental Tax FAQ | This is the official tax authority and represents the cleanest primary source for how landlord rental income is taxed. | We used it to quantify the main net yield haircut landlords face when choosing the 15% final tax option. We used it to explain why Malta's net yields can look significantly lower than gross yields. |
| Legislation Malta - Condominium Act | This is the official consolidated law text that governs condominium and common-parts obligations in Malta. | We used it to explain why common-area costs exist structurally in Malta's apartment-heavy market. We used it to justify budgeting for condo fees and sinking funds as recurring landlord expenses. |
| Ministry for Finance - Budget Speech 2026 | This is the official budget speech document outlining government policy direction for 2026. | We used it to reference public investments and policy changes that could affect renter demand. We used it to frame upcoming projects without relying on unofficial sources. |
| Office of the Prime Minister - PR251201 | This is an official government release about transport infrastructure upgrades tied to connectivity improvements. | We used it to link specific areas like Sliema, Buġibba, and Mġarr Gozo to concrete connectivity projects. We used it to explain why improved access could lift rental demand in those micro-areas. |
| eTenders Malta - Fast Ferry Procurement | This is the official public procurement portal showing what contracts are actually being awarded. | We used it to validate that new ferry links are real procurement-backed projects, not just announcements. We used it to strengthen the credibility of infrastructure projects we mention. |
| Manoel Island Project | This is the primary project source for one of Malta's largest mixed-use redevelopment plans. | We used it to identify the exact micro-area where supply and amenity upgrades could affect rents. We used it carefully as a project fact source rather than a price or yield source. |
| ARMS Portal - Tariff Prices | ARMS manages Malta's utility billing and provides official regulated tariff information. | We used it to ground our utility cost estimates in official tariff structures. We used it to provide realistic monthly budgets for landlords who include utilities. |
| REWS - Water Information | REWS is Malta's regulator for energy and water services and publishes official consumer tariff data. | We used it alongside ARMS data to complete our picture of regulated utility costs in Malta. |
| Baselane - Property Management Fees | Baselane provides well-documented international benchmarks for property management fee structures. | We used it to establish a baseline for ongoing management costs that we then validated against Malta-specific market data. |
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