Budget 2027 for Malta Landlords and Tenants: What Changes

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QuickLets 29 Oct, 2026

Budget 2027 for Malta Landlords and Tenants: What Changes

If you let or rent a flat in Malta, the Budget 2027 headlines can sound like bad news: tourist charges up, foreign workers paying more. Read the measures one by one and the picture for long lets is calmer. On lease law, rent registration and how a long let is taxed, the speech did not announce a change. Checked 29 October 2026; measures from the 26 October 2026 speech apply only once enacted.

In short: The speech did not announce a rent measure, a new rental tax or a change to the Private Residential Leases Act. From 1 January 2027, once enacted, short-let guests aged 18 or over pay an eco-contribution of €10 a night, capped at €80 per person, up from €1.50, while long lets were not brought into the charge. Energy prices stay frozen. Eligible workers may benefit from COLA and the Super Bonus, while non-EU residents without long-term residence status lose free buses from January 2027.

If you are choosing between short and long lets, read this with our short-let vs long-let comparison.

Did Budget 2027 change anything for long lets?

No. The speech did not announce a rent measure, and on registration and how rental income is taxed under Cap. 604, the speech did not announce a change (EY Budget 2027 highlights, p. 11). See our guide to rent registration in Malta for the 30-day registration rule and the deposit rules.

How much will the eco-contribution cost a short-let guest?

From 1 January 2027, once enacted, the eco-contribution applies per person aged 18 or over, not per booking: €10 a night in short lets, capped at €80 per person, and €8 a night in hotels, capped at €64 per person, up from the 2026 rate of €1.50 (EY, p. 9; MaltaToday). Long lets were not brought into the charge. The guest pays and the host collects.

Stay	Rate in force during 2026	From 1 January 2027
Short let, per person aged 18 or over	€1.50 a night (cap €22.50 per person)	€10 a night (cap €80 per person)
Hotel, per person aged 18 or over	€1.50 a night (cap €22.50 per person)	€8 a night (cap €64 per person)
2 adults aged 18 or over, 7 nights, short let	€21	€140
2 adults aged 18 or over, 10 nights, short let	€30	€160 (capped at €80 per person)
2 adults aged 18 or over, 7 nights, hotel	€21	€112
Long-let tenant, 12 months	€0	€0 (not brought into the charge)

For a short-let owner the risk is not the charge itself but a higher total price on booking sites, especially for week-long family stays.

Does that make a long let the better choice?

For many flats the gap has narrowed. A short let already carries MTA licensing, cleaning, platform fees and empty nights, and now a higher per-person charge for adult guests. A seafront flat in Sliema or St Julian's may still suit short-let demand, while a two-bedroom in Msida, Birkirkara or Mosta could become more attractive as a long let. Our QuickLets property owner page is where to start, and our property management team can run the let for you.

What changes for tenants?

Pay: Eligible workers may benefit from COLA and the Super Bonus. COLA of €6.41 a week is a wage adjustment paid by employers, and a tenancy does not create eligibility (Times of Malta).
Bills: electricity, gas and fuel prices stay frozen (Times of Malta).
Non-EU tenants: from January 2027, once enacted, those without long-term residence status lose free bus travel (reported at about €33 a month), new applicants lose free childcare, and a non-EU driving licence is valid for 12 months (The Malta Independent; EY, p. 11).

Well-connected areas close to work or a main bus route, such as Msida and Gzira, could become more attractive to commuters. Our QuickLets guide to the areas to rent in Malta compares them.

Can new residents rent instead of buying?

Yes. Under the Individual Tax Programme in Legal Notice 195 of 2026, the qualifying property from 1 January 2027 is a purchase of €700,000 or a rent of at least €14,000 a year in Malta or Gozo, with a €35,000 minimum annual tax for the main statuses. Only a complete application received by 31 December 2026 keeps the older €15,000 minimum tax until 31 December 2031. The lease must be registered and the rent paid as stated from day one.

Within the QLZH group, Zet Finance advises on this. Its tax advisory team covers the tax position and yearly return.

Questions landlords and tenants ask

Does the eco-contribution apply to long lets?

No. Long lets were not brought into the charge; it applies to guests aged 18 or over in hotels, guesthouses and short lets.

Did Budget 2027 introduce rent caps?

No. The speech did not announce a rent measure; rents are agreed between landlord and tenant under Cap. 604.

Will rents go up because of the budget?

The speech did not announce a measure that raises rents directly. Well-connected flats could become more attractive, and short-let owners moving to long lets could add supply.

Did the budget announce a change for deposits?

No. On rental deposits, the speech did not announce a change. See our guide to getting a deposit back for registration and the inventory.

Next step

Moving a flat from short let to long let before January, or looking for a place near work? Start with our long lets in Malta, browse rentals in Sliema and St Julian's, or compare options on our short lets page.