Rental Agreement Form Malta

Posted on Monday, April 12th, 2021 at 3:53 am

The main laws that must be respected when introducing a lease in Malta are contained in the Civil Code and consist of: leases cannot last more than one year. Any agreement of a shorter term is considered to be agreed for a period of one year, with the exception of short rents. Short-term rent is generally defined as six months or less, while six months or more is defined as long-term. The real estate market in Malta was liberalized a long time ago, but as far as renting was concerned, there were different restrictions for landlords who rented different types of real estate. The new suite of the Rental Rights Regulation (LN 260) adopted in 2018 has made some corrections to the existing legislation. The Maltese government applies a 15% tax on rental income, which applies only to housing contracts. The tax introduced in January 2014 is paid by the lessor. If you want to stay in Malta for a long time – for tourism or business purposes, our Maltese lawyers can help you sign a rental contract. LSRS is a contract to rent separate spaces in an apartment or building with common amenities such as kitchen and bathroom equipment lasting six (6) months or less. A tenant can terminate an LSRS at any time by correctly communicating one (1) week to the landlord by recommended letter. Here too, the lessor cannot impose a penalty or receive compensation for early termination if a tenant ends according to the above indications.

Renewal of leases is not accompanied by a fee if the lease stipulates that the lease is automatically renewed each year. However, for leases that are renewed in the event of termination, they must be re-signed and the annual fee applies to 5 euros. An LSRS cannot be renewed as soon as its term of office is terminated and no formalities are completed at the end of its term of office. Once the deadline has passed, an LSRS simply expires, with no roll-over continuation rights. According to LN 260/2018, landlords have the right to change the rent to be paid in the event of an automatic renewal of a rental or rental agreement. But the same law also provides for the protection of tenants, which means that the value of the rent cannot increase by more than 5% per year. Another concern that could be pointed out is that it is an end to a non-renewable LPRL. The law provides that in the absence of notification from the lessor to the lessor (at least three (3) months before the termination date, the LPRL will be extended by a period of twelve (12) months.

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