Short-Let Rental Tax in Malta: What Property Owners Need to Know in 2026

If you're earning income from Airbnb, Booking.com, or any short-let rental in Malta, you have a tax obligation. The good news: Malta's tax framework for rental income is relatively straightforward, and there are legitimate ways to minimise your liability.

The 15% Flat Tax Option

Malta offers property owners a highly attractive flat tax rate of 15% on gross rental income. This is a final withholding tax — meaning you don't need to declare the rental income in your standard income tax return if you elect this option.

Key points:

• The 15% rate applies to the gross rent received, before any deductions
• It is optional — you can instead declare rental income as part of your general income and be taxed at your marginal rate (up to 35%)
• For most property owners, the 15% flat rate is significantly more advantageous
• You must submit a separate rental income tax return (Form RRT) by 30 June each year

Short-Let vs Long-Let: Same Tax Treatment?

Yes. The 15% flat rate applies to both long-term residential rentals and short-term holiday rentals (Airbnb, Booking.com, etc.).

VAT on Short-Let Rental Income

Short-term accommodation (stays under 30 days) is considered a taxable supply for VAT purposes. If your annual short-let income exceeds the VAT registration threshold (currently €35,000), you are required to register for VAT and charge 7% VAT on accommodation services.

Practical points:

• Airbnb and Booking.com typically handle VAT collection from guests in Malta automatically
• You may still have filing obligations — confirm with your accountant
• Properties managed via Eleva Malta benefit from guidance on VAT compliance as part of the service

MTA Licensing and Tax

Since the Malta Tourism Authority introduced mandatory Holiday Furnished Premises Licences, all licensed short-let properties are effectively registered with the government. Undeclared short-let income is increasingly difficult to conceal — and the penalties for non-compliance are significant.

Deductible Expenses (If Using Marginal Rate)

If you opt out of the 15% flat rate and declare at your marginal rate, you can deduct legitimate expenses including: management fees, repairs and maintenance, insurance, utilities (if borne by the owner), and depreciation.

However, for most owners, the flat 15% rate still results in a lower overall tax burden.

Non-Resident Property Owners

If you own property in Malta but are not a Maltese tax resident, rental income sourced in Malta is still taxable in Malta. The 15% flat rate is available to non-residents as well. Double tax treaty provisions may affect your position in your country of residence.

Key Dates for 2026

• 30 June 2026: Deadline for Form RRT (rental income tax return for 2025 income)

For property owners using Eleva Malta's management service, we provide a full annual income summary to simplify your tax filing. Get in touch to learn more.