Short-Term vs Long-Term Rentals in Malta: Which Option is Right for You?

Understanding Short-Term Rentals in Malta

Short-term rentals in Malta typically refer to properties rented out for days, weeks, or up to several months. This market has grown significantly due to the island’s popularity as a tourist destination, particularly in hotspots like Sliema, St. Julian’s, Valletta, and Gozo. Short-term rentals are often listed on platforms such as Airbnb, Booking.com, or through private arrangements. These properties are fully furnished, equipped with amenities, and cater to holidaymakers, business travelers, and temporary residents. From a tenant’s perspective, short-term rentals offer flexibility and convenience, eliminating the need for long-term commitments. For property owners, short-term rentals can yield higher income, especially during peak tourist seasons. However, managing a short-term rental requires time, marketing, and compliance with Malta’s rental regulations, which include obtaining licenses and meeting safety standards. While lucrative, short-term rentals are subject to seasonal fluctuations, making consistent income less predictable compared to long-term rentals.

Benefits and Challenges of Long-Term Rentals

Long-term rentals in Malta generally involve lease agreements of six months or more, with 12-month contracts being the most common. These properties are ideal for expatriates, students, remote workers, and locals seeking stability. Long-term rentals offer more affordable monthly rates compared to short-term options, particularly in sought-after areas like Msida, Gzira, Marsaskala, and Mosta. For tenants, the benefits include predictable living costs, greater security of tenure, and the ability to settle into the community. Landlords also benefit from steady, reliable income with reduced administrative tasks compared to short-term letting. However, long-term rentals may require properties to be offered partially or fully furnished, depending on tenant expectations. Investors should consider that long-term rental yields may be lower than short-term options but come with fewer vacancies and lower marketing expenses. For those prioritizing consistency and minimal involvement, long-term rentals offer a balanced approach to property investment in Malta.

Regulatory Considerations for Short-Term and Long-Term Rentals

Malta has implemented specific regulations governing both short-term and long-term rentals to ensure tenant rights, safety, and fair market practices. Short-term rental operators must obtain a valid license from the Malta Tourism Authority (MTA) and comply with health and safety standards. Properties listed for holiday rental must display their license number and meet accommodation quality guidelines. Tax obligations apply, with rental income subject to a flat 15% tax rate for residential leases, regardless of term. Long-term rental agreements fall under the Private Residential Leases Act, which mandates written contracts, registration with the Housing Authority, and protections for both tenants and landlords. Fixed-term leases exceeding six months offer more legal security, including rules on deposit returns, rent increases, and contract termination. Non-compliance with rental laws can lead to fines or legal disputes, making it essential for landlords and tenants to be fully aware of their responsibilities under Maltese law.

Choosing the Right Option Based on Your Lifestyle

The choice between short-term and long-term rentals in Malta largely depends on individual circumstances, lifestyle preferences, and financial goals. Short-term rentals are ideal for tourists, business travelers, and digital nomads who prioritize flexibility, convenience, and furnished accommodation. These rentals allow tenants to explore different parts of the island without long-term commitments. Conversely, long-term rentals suit expatriates relocating for work, students attending university, retirees, or families seeking a more permanent home. They offer better value for money over time and provide the opportunity to integrate into local communities. Investors should also weigh their priorities: short-term rentals can yield higher returns during tourist seasons but require active management, while long-term leases provide stable income with fewer administrative burdens. Understanding your needs, length of stay, and willingness to engage with property management will help determine the most suitable rental approach in Malta’s dynamic property market.

The Future Outlook of Malta's Rental Market in 2025

As of 2025, Malta’s rental market continues to evolve, influenced by increased tourism, remote work trends, and ongoing real estate development. The demand for short-term rentals remains strong, especially in coastal areas, driven by Malta’s appeal as a vacation hotspot. However, tighter regulations and the need for licenses are shaping the market, promoting higher standards and better tenant experiences. Long-term rentals are experiencing steady demand from the growing expatriate population, international students, and local residents facing limited property ownership options. Gozo, in particular, is seeing increased rental activity, providing affordable alternatives to Malta’s urban centers. With property prices stabilizing, rental yields remain attractive, making both short-term and long-term rentals viable for investors. Choosing the right rental strategy requires staying informed of market trends, legal updates, and tenant expectations. Whether you seek flexibility, stability, or investment returns, Malta’s diverse rental landscape offers opportunities for every type of tenant and property owner.