The New Malta Short-Let Reforms 2026: A Survival Guide for Property Owners
Malta’s short-term rental market is entering a new era of professionalization. As we move through 2026, the Malta Tourism Authority (MTA) has transitioned from a period of rapid expansion to one focused on "quality and sustainability" over volume.
For property owners in Sliema, St. Julian's, Valletta, and beyond, the message is clear: the "ghost host" era is over. To protect your investment and maintain your yields, you must align with the new Tourism Accommodation Regulations 2025/2026 today.
What’s Changing? The Four Pillars of the 2026 Reform
The new legislation, tabled to address community concerns and market saturation, introduces several strict requirements that every landlord must follow.
1. The Strict 6-Guest Occupancy Cap [1]
One of the most significant shifts is the universal limit on guest numbers.
The Rule: All short-let units (Holiday Furnished Premises) are now restricted to a maximum of six occupants per unit.
Universal Application: This cap applies regardless of the property's size. Whether you own a compact studio or a sprawling 4-bedroom townhouse, the legal limit remains six guests. This is designed to reduce the strain on local infrastructure and residential neighborhoods.
2. The 3-Month "Cooling-Off" Period [2]
To preserve the long-term rental market for residents, the government has introduced a barrier to "flipping" properties.
If a property was previously registered as a long-term residence with the Housing Authority, it must now remain vacant for a mandatory period of three months before it can be granted a short-let license.
This measure prevents landlords from abruptly terminating long-term leases to chase higher tourist rates without a transitional gap.
3. Ending "Ghost Hosting" with Visible Accountability [1]
To increase transparency, properties must now feature:
Physical Signage: A visible exterior plaque displaying the MTA License Number.
24/7 Responsible Person: Owners are legally required to provide a contact number for a "Responsible Person" available 24 hours a day to address emergencies or neighbor complaints.
4. Updated Eco-Tax and Enforcement [3]
As part of the Malta Budget 2026, the Environmental Contribution (Eco-Tax) has seen adjustments to support infrastructure.
The Rate: The contribution has increased to €1.50 per person per night (still capped at €5.00 per stay).
The Blacklist: Units caught operating without a valid license face a three-year ban from obtaining any future permit, along with fines of up to €23,000.
How CiaoStay Helps You Navigate the New Laws
The administrative burden of these new rules can be a full-time job. CiaoStay specializes in the Maltese market, offering property owners a stress-free way to remain 100% compliant while maximizing ROI.
Licensing & Signage: We manage the entire MTA application process and ensure your property displays the mandatory legal plaques.
The 24/7 Response Team: We act as your "Responsible Person," fulfilling the legal requirement for a round-the-clock local contact.
Financial Compliance: We handle the collection and remittance of the new €1.50 Eco-Tax and manage your registration transitions to minimize the impact of the 3-month cooling-off period.
Occupancy Strategy: We help re-position your property to attract high-value guests, ensuring that the 6-person cap doesn't mean a drop in revenue.
Don't Wait for an Audit
With new EU-wide data-sharing rules, the MTA can now identify unlicensed properties instantly. Ensure your investment is safe before the next wave of inspections.
Contact the CiaoStay Team Today for a free 2026 Regulatory Audit. We’ll handle the paperwork so you can focus on the profits.
References & Notes
MaltaToday (2025): "Proposed law seeks to reform accommodation sector in Malta". Confirmed strict 6-person occupancy cap and 24/7 contact requirements.
Newsbook (2025): "Proposed legislation aims to reform short-term rentals market". Details on the three-month cooling-off period between long-term and short-term leases.
PwC Malta (2026): "Malta Budget 2026 Summary". Verified increase of Eco-Tax to €1.50 per night.
