Rent Registration in Malta, How Can I Do It ?

What is Rent Registration ?

The Rent registration is the legal process where you documment by a rental agreement a residence to the authorities. This registration is mandatory and is intended to provide security to both the landlord and the tenant as to the conditions and terms of the rental.

Why you have to do a rent registration in Malta ?

– Legal Compliance: Registration ensures that the rentar agreement complies with current rental legistation in Malta.
– Landlord and tenant protection: Once registered, the lease is oficially recognized and provides legal protection in case of disagreements between the parties.– Security fot — Security for both parties: Registering the lease is a formal way to establish the agreed terms, such as the length of the lease, monthly rent, maintenance responsibilities, and more. This helps prevent legal disputes.
– Taxes and fees: Rent registration is also linked to the reporting of rental income to the tax authorities. Landlords must declare rental income and, in some cases, may benefit from a reduced tax rate on rental income, which is 15% for registered leases.

What do you need to make a Rent Agreement?

-Sign the lease: The landlord and tenant must sign a written agreement. This contract should include important details such as:

• • The length of the lease.
    
  • The amount of the monthly rent.
    
  • The responsibilities of both parties regarding the maintenance of the property.
    
  • Other specific conditions agreed upon by the parties.

-Deadline for registration: The contract must be registered within 15 days after signing the agreement.

-Registration with the Housing Authority: The rental agreement must be registered with the Malta Housing Authority, which has an online system where landlords can register their rental agreements.

• • You can do this through the Malta Housing Authority’s portal.
  • The authority also offers the possibility to register it physically at its offices.

-Payment of taxes and fees: During the registration process, the landlord must pay a tax or fee on the rent received. This tax is usually 5% of the annual rental income on long-term leases.

-Obtaining a certificate of registration: Once the lease is registered, the landlord and tenant receive a certificate of registration confirming that the lease is legally registered. This certificate is important for legal and tax purposes.

-Other details of the contract:

• • Property maintenance: It should be specified who will be responsible for the costs of property maintenance, repairs and utilities such as water, electricity and gas.
  • Use of the property: The contract may include restrictions on the use of the property (whether smoking, pets, or renovations are allowed).

-Signing the contract: The landlord and the tenant must sign the contract.

How to register a Rent Agreement

Once the above steps have been completed (sing the lease, payment of taxes and fees…), registration can be done through the Inland Revenue Department (IRD), which is the authority responsible for revenue administration in Malta.

Things To Know About the Rental Registration

Types of Rental Agreements Subject to Registration

-Long-term leases: Any rental agreement that lasts for more than 12 months must be registered.

-Short-term leases: Agreements lasting less than 12 months must also be registered, especially if they involve rental income.

-Rent-to-own agreements: These types of agreements also need to be registered.

Duration of the Rental Agreement

Most rental agreements are valid for one year, but they can also be renewed or extended.

 Short-Term Rentals (Airbnb, etc.)

Short-term rentals (like those on Airbnb) are also subject to rental registration, especially if the property is rented out for periods exceeding 30 days.

Registration of Amendments or Renewals

If any amendments or renewals are made to the rental agreement (such as changes to rent, contract duration, etc…), they must also be registered within 21 days of the change.

How To Extend The Rent Agreement  step by step

1) Review the existing contract

Check whether the contract includes an automatic renewal clause or specific conditions for extension.

2) Negotiate the terms

If conditions need to be changed, such as a rent adjustment, they should be agreed in writing.

3) Modify the agreement

Draft an addendum or a new agreement detailing the extended terms. Both parties have to sign the document.

4) Re-register the agreement

Submit the updated agreement to the Housing Authority via their online portal.

5) Get confirmation