Airbnb vs Long-Term Rental in Malta: Which Earns More in 2026?
Malta property owners face a fundamental choice: list on Airbnb and Booking.com for short-term visitors, or rent long-term to a tenant on a 12-month lease. The right answer depends on your location, property type, risk tolerance, and management preference. This guide compares both strategies using real 2026 Malta data.
The Numbers: Short-Let vs. Long-Term in Malta
Using a concrete example: a well-presented 1-bedroom apartment in Sliema.
Long-Term Rental Income
- Market rent: approximately €950–€1,100 per month
- Annual gross income: €11,400–€13,200
- Vacancy risk: 1–2 months between tenants
- Realistic annual net after vacancy and minor maintenance: €9,500–€11,000
Short-Let (Airbnb) Income
- Average daily rate: €130–€160
- Occupancy: 75–80% annually (274–292 nights)
- Gross annual revenue: €35,620–€46,720
- Platform commissions (~15%): −€5,343–€7,008
- Management fee (30%): −€9,083–€11,916
- 15% Malta withholding tax: −€3,179–€4,169
- Estimated net income: €18,015–€23,627
Short-let advantage: 64–115% more net income than long-term renting for the same Sliema property.
Why the Gap Is So Large
Malta’s long-term rental market is capped by what local residents and long-term expats can afford to pay. The short-let market is priced to what tourists — who have budgeted specifically for a holiday — are willing to spend. In prime tourism locations, that willingness is significantly higher than local rental capacity.
Professional management narrows the gap (30% fee is significant) but still leaves short-let substantially ahead in net income terms for most prime Malta locations.
When Long-Term Renting Wins
Short-let is not the right strategy for every property or every owner. Long-term renting makes more sense when:
- Location is off the tourist trail. A property in Żebbug or Qormi will not achieve the occupancy rates needed to justify short-let management costs. Long-term renting delivers more stable returns.
- You cannot obtain an MTA licence. Without a licence, you cannot legally short-let. If your property faces licensing obstacles, long-term is the only legal path.
- You want zero management involvement. A good long-term tenant requires minimal ongoing management. Even with professional short-let management, more active oversight is involved than with a long-term lease.
- You plan to occupy or sell in the near term. A long-term tenant offers more predictable vacancy on departure than an active short-let calendar.
The Risk Profile Comparison
Short-Let Risks
- Seasonality: Even prime Malta areas see lower demand in November–February. Dynamic pricing and multi-platform distribution minimise this.
- Regulatory risk: Legal Notice 92 of 2026 increased compliance requirements. Operating without a licence is increasingly risky.
- Property wear: Higher guest turnover creates more wear than a single long-term tenant, but platform protections and professional inspection protocols mitigate this.
- Income variability: Monthly income varies. Professional dynamic pricing smooths this significantly.
Long-Term Rental Risks
- Difficult tenant removal: Malta’s rental law provides significant tenant protections. Removing a non-paying or problematic tenant is a lengthy legal process.
- Slow property degradation: Long-term tenants may cause damage that is only discovered at departure, sometimes years later.
- Rent review limitations: Fixed lease rates mean income does not adjust for inflation or rising market rents during the lease term.
- Void periods: Tenant transitions create 4–8 week void periods with no income but ongoing costs.
The Hybrid Strategy
Some Malta property owners adopt a mixed approach — short-letting during peak season (April–October) and taking a medium-term tenant (2–6 months) during the quieter winter months. This strategy:
- Captures peak-season premium rates on Airbnb
- Reduces winter vacancy with a winter tenant paying €700–€900 per month
- Avoids the risk of a locked-in long-term lease restricting peak availability
Eleva manages hybrid strategies for owners who want to optimise across seasons.
Our Recommendation
For properties in Valletta, Sliema, St. Julian’s, Gozo, or any area with proven tourist demand and an MTA licence: short-let with professional management delivers substantially higher net income than long-term renting in virtually every scenario we have modelled.
For properties in non-tourist areas or where licensing is not achievable, long-term renting remains the right choice.
Frequently Asked Questions
Can I switch from long-term to short-let at any time?
You must wait until the existing lease expires or negotiate an early termination with your tenant. Malta rental law does not allow you to force a tenant to leave before the lease end date to switch to short-let.
Does short-let income affect my tax position differently from long-term rental income?
In Malta, both long-term and short-term rental income can be subject to the 15% final withholding tax option for individuals. However, the structures differ in practice. Consult a Malta-based tax adviser for your specific situation.
How do I know if my property is in a short-let viable location?
Contact Eleva for a free revenue estimate. We assess your specific property’s location, size, and condition against current market data and give you a realistic annual income projection before you commit to anything.





