Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Malta tax professional before filing.
Malta · Malta · Short-term rental taxes
Short-Term Rental Taxes in Malta
Short term rental taxes in Malta: an MTA short-let licence, a 15% final tax on gross rent or progressive rates up to 35%, 7% VAT on licensed accommodation, and a €1.50-a-night eco-contribution since July 2026.
The 30-Second Answer
- Licence first. Every short let needs prior Malta Tourism Authority (MTA) authorisation — operating without one is prohibited and can bring a three-year disqualification for the operator and the property.
- Short term rental tax in Malta is income tax: elect a 15% final tax on gross rent (form TA24, paid by 30 April) or declare net profit at progressive rates of 0–35% in your return by 30 June.
- VAT: licensed accommodation is taxed at 7%. If turnover is €35,000 or less you can register under Article 11 instead — no VAT charged, but no input VAT recovered.
- Eco-contribution: from 1 July 2026 guests aged 18+ pay €1.50 per night, capped at €22.50 per person per stay. The licence holder charges it, shows it separately on the receipt and remits it.
Deductions
What Malta Short-Let Hosts Can Deduct
Deductions only count on the progressive route — the 15% final tax is charged on gross rent with no expenses at all.
If your letting is treated as passive rent rather than a trade, deductions are narrower: interest and ground rent, then a flat 20% maintenance allowance. MTCA's rental manual notes short lets are typically trading in nature — confirm your position with an adviser.
Filing Calendar
Key Dates & Filing Calendar
Malta's tax year is the calendar year. Your deadlines depend on whether you take the 15% final tax or the progressive route.
The 15% election covers all your Malta rental income for the year — you can't pick it for one flat and use progressive rates for another in the same year.
Airbnb — Malta Tax Considerations on Short-Term Lettings (Nov 2025); MTCA — Manual on the Taxation of Rental Income; MTA — Eco-Contribution Guidelines 2026
Tax Treatment
15% Final Tax or Progressive Rates: The Malta Short-Let Choice
Each year you choose how Malta taxes your rent: a flat 15% on the gross, or the normal rates on your net profit.
15% final tax on gross rent
Simple, flat, no deductions
- Pay 15% of gross rental income with form TA24 by 30 April of the following year — the tax is final.
- No expenses are deducted, and the rent is kept out of your other income.
- Available to residents and non-residents; not for rents from related parties.
- Beats the progressive route when costs are below about 40% of rent at the 25% band (57% at the 35% band).
None — flat 15% on all Malta rent that year
Progressive rates on net profit
Deduct costs, pay 0–35%
- Declare rent in your income tax return by 30 June; 2026 single rates are 0% to €12,000, 15%, 25% and 35% above €60,000.
- Deduct actual costs and wear and tear on furniture and fittings if the letting is a trade.
- Passive-rent treatment instead allows interest, ground rent and a 20% maintenance allowance.
- Worth it when costs are high or your total income sits in the 0% or 15% bands.
Top rate 35% above €60,000 (single)
Depreciation
Wear and Tear for Malta Short-Let Properties
Malta allows wear-and-tear deductions on plant, furniture and fittings used in a trade — but not on the residential building itself.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Furniture, fixtures, fittings & soft furnishings | 10 years minimum | Straight-line over at least 10 years; progressive route only. |
| Electrical & plumbing installations, sanitary fittings | 15 years minimum | New bathrooms, wiring and water heaters you install. |
| Computers & electronic equipment | 4 years minimum | Smart locks, routers, laptops used for the business. |
| The apartment or house itself | No allowance | No wear and tear on residential buildings; under passive treatment use the 20% maintenance allowance instead. |
Under the 15% final tax no wear and tear or other deduction is available. Keep a fixed-asset register with purchase dates and invoices.
Selling furniture or equipment you have claimed wear and tear on can trigger a balancing adjustment in that year. A sale of the property itself falls under Malta's separate property-transfer tax rules — check them with your adviser before you sell.
Eco-contribution & VAT
Malta's Guest Charges: Eco-Contribution and VAT
Malta has no municipal occupancy or lodging tax. What you add to a guest's bill is VAT and the national eco-contribution.
Accommodation in premises that must be licensed under the Malta Travel and Tourism Services Act carries VAT at 7%, unless you are an Article 11 small undertaking. The eco-contribution is charged per adult per night on top and is not part of the VATable price.
7% VAT (if Article 10) + €1.50 per adult per night eco-contribution
MTCA — VAT Rates & Exemptions FAQs; MTCA — VAT guidelines for small enterprises (2025); MTA — Eco-Contribution Accommodation Guidelines 2026
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb booking | Airbnb does not list Malta among the places where it collects occupancy taxes — you charge and remit eco-contribution and any VAT | Collect the eco-contribution from guests (in the price or on arrival) and keep it off your income |
| Booking.com or Vrbo booking | You, as licence holder, unless you've confirmed in writing the platform or a registered operator handles it | Reconcile platform payouts against VAT and eco-contribution due for each stay |
| Direct booking | You collect VAT (if Article 10) and eco-contribution and issue a fiscal receipt | Show the eco-contribution as a separate line from the accommodation charge |
Eco-contribution from 1 July 2026: €1.50 per night for guests aged 18+, maximum €22.50 per person per visit (it was €0.50, capped at €5, before). Show it separately from accommodation on the fiscal receipt; the MTA has delegated some collection functions to the MHRA.
Platforms
Airbnb Tax in Malta: Platforms, DAC7 and Guest Charges
For Airbnb tax in Malta, the platform reports your earnings to the tax authority, but collecting the eco-contribution and VAT stays with you.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Yes — reports host income to the Maltese tax authority under DAC7 | No — Malta isn't on Airbnb's occupancy-tax collection list | Earnings and transaction history in your account; annual DAC7 statement |
| Booking.com | Yes — DAC7 reporting | Don't assume it — confirm in the extranet; the licence holder stays liable | Monthly invoices and payout statements |
| Vrbo | Yes — DAC7 reporting | Don't assume it — charge the eco-contribution yourself | Payout reports in the owner dashboard |
| Direct bookings | No platform report — declare it yourself | You collect and remit | Your own booking ledger and fiscal receipts |
Listing on More Than One Platform?
Each platform reports only its own payouts under DAC7. Add them up with direct bookings for your TA24 or return, and track total turnover — the €35,000 Article 11 VAT threshold counts all your supplies in Malta, not per platform.
EU DAC7 Reporting
Under EU Directive 2021/514 (DAC7), platforms report each host's payouts, number of bookings and property address to the tax authority of the member state where the property sits — Malta's tax and customs administration for Maltese lets. Your return or TA24 should match those figures.
Airbnb Help Center — occupancy tax collection areas (airbnb.com/help/article/2509); Council Directive (EU) 2021/514 (DAC7)
Illustrative P&L: Sliema Apartment, 15% Final Tax vs. Progressive
Host with a €45,000 salary, so rental profit falls in the 25% band. Rent excludes VAT (Article 11) and eco-contribution. Illustrative only — not tax advice.
Record-Keeping
Stay Audit-Ready: What Malta Hosts Should Keep
Records must support your income tax, VAT and eco-contribution filings — and your MTA licence conditions.
| Keep | How long | Why |
|---|---|---|
| Booking ledger (dates, guests 18+, nights, price) | At least 9 years | Supports rent declared on TA24 or your return and the eco-contribution due |
| Fiscal receipts showing eco-contribution separately | At least 9 years | Required by the MTA guidelines; proves eco-contribution wasn't treated as VATable price |
| Platform payout statements and DAC7 statements | At least 9 years | The tax authority matches DAC7 data to your declarations |
| Expense invoices and fixed-asset register | At least 9 years | Supports deductions and wear and tear on the progressive route |
| MTA licence, insurance policy and planning documents | While licensed | Needed for MTA inspections and renewals |
Malta's Income Tax Management Act requires records to be kept for at least nine years after the transactions they relate to. Assessments are normally time-barred five years after the year the return was filed — but not where disclosure was incomplete.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
Checked September 2026. The eco-contribution changed on 1 July 2026 and the Tourism Accommodation Regulations 2026 tightened licensing; confirm current rules with the MTA and MTCA before you file.
- Malta Tourism Authority — Short-Let Rented Accommodation — Prior MTA authorisation, requirements, notice display, 2026 regulations, penalties. mta.com.mt/licenses-applications/holiday-furnished-premises
- MTA — Eco-Contribution Accommodation Guidelines 2026 — €1.50 per adult per night, €22.50 cap, from 1 July 2026, separate on receipt. mta.com.mt/docs/Eco-Contribution-Accommodation-Guidelines-2026.pdf
- MTCA — Manual on the Taxation of Rental Income (Article 31D) — 15% final tax, TA24 by end April, no deductions, 20% maintenance allowance. mtca.gov.mt/docs/default-source/documents/manual-on-taxation-of-rental-incomee26fd6c3-a420-4cb8-b7c4-0b7e1137b7de.pdf
- MTCA — Tax rates for individuals 2026 — Single, married and parent bands. mtca.gov.mt/personal-tax/tax-rates/tax-ratesindividuals/2026
- MTCA — VAT Rates & Exemptions FAQs — 7% on accommodation in premises licensed under the Malta Travel and Tourism Services Act. mtca.gov.mt/docs/default-source/documents/business-tax/vat/faqs/vat-rates-and-exemptions---faqs.pdf
- MTCA — Guidelines on VAT rules for small enterprises (2025) — €35,000 Article 11 threshold; exemption without credit. mtca.gov.mt/docs/default-source/documents/business-tax/vat/vat-guidelines/guidelines-in-relation-to-the-vat-rules-applicable-to-small-enterprises.pdf
- Airbnb — Malta Tax Considerations on Short-Term Lettings (November 2025) — 15% election covers all Malta properties, TA24 by 30 April, return by 30 June. assets.airbnb.com/help/Airbnb_TaxGuide2026_Malta_ENGLISH.pdf
- Airbnb Help Center — Where occupancy tax collection is available — Malta not listed. airbnb.com/help/article/2509
- Income Tax Management Act (Cap. 372), Articles 19 and 31 — Nine-year record keeping; five-year assessment time-bar. legislation.mt/eli/cap/372/eng
Questions
Frequently Asked Questions: Malta STR Taxes
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