Rental Market Overview in Malta
The rental market in Malta is primarily governed by the Private Residential Leases Act. This legislation, overseen by the Housing Authority, provides a legal framework to protect both tenants and landlords. For foreign nationals, understanding the distinction between different lease categories and the mandatory registration process is essential to ensure legal residency and fair treatment regarding utility billing.
Most rental properties in Malta are furnished, though unfurnished options are available. The market is concentrated in the North Harbour region, including towns such as Sliema, St. Julian’s, and Gżira, where demand remains high among the international community.
Types of Residential Leases
Malta defines three specific types of private residential leases. Each has distinct rules regarding duration and termination:
- Long Private Residential Leases: These must have a minimum duration of one year. This is the standard choice for most foreign residents moving to Malta for work or long-term residency.
- Short Private Residential Leases: These have a maximum duration of six months. They are strictly reserved for specific categories: non-resident workers (employed for 6 months or less), students enrolled in short courses, or residents needing temporary housing who do not intend to stay long-term. Proof of status is required.
- Shared Residential Space Leases: This refers to the leasing of separate space in an apartment or house (e.g., a bedroom with shared common areas). The duration is typically flexible but requires formal registration.
Mandatory Lease Registration
Every private lease agreement must be registered by the landlord with the Housing Authority within 10 days of the commencement of the lease. If the landlord fails to do so, the tenant may register the lease themselves at the landlord's expense. The standard registration fee is 10 EUR ($11 USD, Jan 2026). If the registration is submitted late, a penalty fee of 100 EUR ($110 USD, Jan 2026) applies.
Tenant Rights and Rent Increases
Under current regulations, landlords are restricted in how they can increase rent. For long-term leases, rent increases cannot exceed 5% per annum. Furthermore, any increase must be explicitly stipulated in the original contract. If a contract does not mention an annual increase, the rent remains fixed for the duration of the term.
The law also provides specific "dipping out" periods for tenants on long leases. A tenant cannot withdraw from a one-year lease during the first six months. Following this period, the tenant may terminate the lease by giving at least one month's notice via registered mail. For longer leases (e.g., 3 years), the mandatory stay period and notice periods increase accordingly.
Utilities and ARMS Billing
In Malta, water and electricity services are managed by ARMS Ltd. There is a significant price difference between "Domestic" rates (for secondary homes/unoccupied units) and "Residential" rates (for primary residences). Foreigners are often charged the higher Domestic rate by default.
To access the lower Residential rate, tenants must ensure the landlord submits "Form H" (for electricity) and "Form N" (for water) to ARMS Ltd, confirming the number of residents living in the property. Tenants are advised to request a copy of the utility bill every two months to verify they are being charged at the correct rate and that their payments are being forwarded to the utility provider.
Security Deposits and Inventory
A security deposit, usually equivalent to one month's rent, is standard. This deposit is held by the landlord to cover potential damages or unpaid bills at the end of the tenancy. It is highly recommended to perform a joint inspection upon moving in and to sign a detailed inventory list, including photos of the property's condition, to prevent disputes during the refund process.
