Legal Update | New Tourism Accommodation Regulations (S.L. 409.24): A Guide for Short-Let Property Owners in Malta

The local market for short-let rented accommodation has grown rapidly over the past decade, with non-collective accommodation, including short-let apartments, houses and villas, increasing its share of inbound tourist accommodation. However, whilst this growth has brought about economic opportunity, it has also raised concerns around community impact, housing affordability, waste management, noise, enforcement and the quality of the visitor experience.

The legal regime governing tourism accommodation did not fully address the specific challenges arising from the rapid growth of short-let platforms and was fragmented across multiple instruments, namely the Malta Travel and Tourism Services Act (Cap. 409), the Tourism Accommodation Establishments Regulations (S.L. 409.04), the Host Family Accommodation Regulations (S.L. 409.10), Holiday Premises Regulations (S.L. 409.11), and the Licensed Accommodation Regulations (S.L. 409.21).

In response, the 2026 Tourism Accommodation Regulations (the ‘Regulations’) repeal and replace the above-mentioned regulations with the aim of consolidating and modernising the legal framework governing tourism accommodation in Malta. These Regulations seek to establish uniform systems for licensing and compliance, whilst also updating the existing classification framework to better reflect evolving trends in the local tourism accommodation market. The consolidation of the said legal framework also means that practitioners, property owners and operators now have a single instrument to refer to for tourism accommodation licensing matters.

Strengthened Licensing Requirements for Short-Let Rented Accommodation

Whilst under the former regime, a licence issued by the Malta Tourism Authority (the ‘MTA’) was already required to operate tourism accommodation, including short-term holiday premises, the Regulations confirm that no person may operate short-let accommodation for tourists without an MTA licence. Key licensing requirements include:

• A licence to operate short-let rented accommodation shall be issued under the following types: studio, apartment, house, villa or farmhouse.
• Licences are issued only to the proprietor in title who is defined as being the owner in title and includes any agent or other person mandated by the owner to carry out the activity, any lessee, emphyteuta, usufructuary or any director in the case of a legal person acting on its behalf. The proprietor in title must declare whether the property shall be operated directly, by means of a sub-contract, or otherwise by third parties.
• Applicants must hold valid development permission and provide certification of conformity with planning permission. Additionally, properties which in the reasonable opinion of the MTA, have not been finished to a high standard, shall not be eligible for consideration.
• Valid insurance (including common-parts cover, where applicable) is mandatory.
• A police conduct certificate confirming no conviction in Malta or in any other jurisdiction for offences punishable by six months’ imprisonment or more in the preceding five years.
• Compliance with the detailed classification standards set out in the Sixth Schedule of the Regulations.
• Identification of a designated natural person available 24 hours a day, 7 days a week, to receive complaints and address problems, with current contact details provided to ensure that hosts or their operators are reachable at all times and are responsible for resolving complaints in a timely manner.

Occupancy and Booking Limits

The Regulations introduce specific occupancy controls including:

• A maximum of two persons per Planning Authority-approved bedroom;
• A maximum of ten total occupants per unit, unless the unit has independent road access;
• Underground bedrooms and bedrooms located in basements are prohibited;
• That no individual booking may exceed 90 consecutive days.

Waste Management Requirements

Applications and renewals must include a waste collection management plan. Properties must provide waste separation arrangements, a refuse collection schedule and comply with an overall waste management plan. These requirements address a significant concern regarding the environmental impact of high-turnover accommodation.

Obligations for short-let accommodation located within condominiums

Once an MTA licence is obtained, the licensee must notify the block administrator in writing and provide a copy of the notification to the MTA.

Additionally, signage must be displayed on or adjacent to the unit entrance showing the address of the premises, that it is a licensed short-let rented accommodation, the official registration/licence number, and the name and contact details of the designated 24-hour responsible person. An energy performance certificate must also be visibly displayed within the unit.

Enhanced Enforcement and Disqualification

While the Malta Travel and Tourism Services Act (Cap. 409) provides the MTA with inspection and enforcement powers, including the ability to issue enforcement notices, the Regulations have significantly strengthened enforcement in relation to tourism accommodation:

• The MTA may carry out unannounced site inspections of short-let rented accommodation and investigations for the purposes of assessing the standards of said accommodations.
• Where shortcomings are identified, a timeframe to remedy may be granted and failing a remedy, enforcement notices may be issued and the MTA may reconsider classification and suspend or revoke operating licences.
• New disqualification rule: Operating without a valid MTA licence disqualifies the person from applying for a short-let licence for three years. The dwelling itself is also ineligible for a licence during the same three-year period, irrespective of who applies. This is intended to operate as a significant deterrent against unlicensed operation, making the timely obtaining or renewal of an MTA licence crucial.
• The MTA may suspend or withdraw a licence (temporarily or permanently) for breaches relating to noise, waste management or health, where established by a final court decision with res judicata effect or by a final, non-appealable enforcement notice from a competent authority.

Detailed Physical and Service Standards (Sixth Schedule)

Whilst previously there were in place standards for accommodation quality, these were more basic and less detailed. The Sixth Schedule of the Regulations now imposes comprehensive minimum standards requiring:

• Bedroom sizes of a minimum 9m² for one person and an additional 4 m² for every additional person, with a minimum internal width of 2.75m. However, this standard applies only to establishments in respect of which the contract of sale was entered into after 15^th June 2026, unless it is demonstrated that the relative promise of sale was entered into before that date.
• Prohibition on living-area sleeping accommodation and bunk beds.
• Bathroom ratios, facilities and fittings.
• Kitchen equipment including forced ventilation, cooking facilities, fire extinguisher, fire blanket, gas detector (where applicable) and smoke detector.
• Wi-Fi, first aid provisions, emergency lighting and fire safety.
• Air-conditioning for cooling and heating. However, in respect of existing units, this requirement will enter into force after 15^th June 2028.
• Guest information, maintenance and cleaning obligations.

MTA Decision Criteria

When considering applications, the MTA must have regard to:

• The National Tourism Strategy.
• Visitor-experience quality.
• Climate change and sustainability considerations.
• Phasing out obsolete or undesirable accommodation.
• Prevailing bed stock by locality and region.
• The strategic vision of other competent authorities.
• Applicable annex criteria and standards.

The Regulations also confer powers on the MTA to establish locality-specific licensing criteria that may vary by locality, enabling the Authority to manage accommodation density in a given locality. Such criteria must be published in the Government Gazette and on the MTA’s website. Additionally, the Regulations provide local councils with the authority to impose additional conditions on short-let rented accommodation within their area through by-laws.

Although, the Regulations came into effect on the 15^th June 2026, existing licences, decisions and acts taken under the former regime continue to have legal effect, subject to the applicable transitional provisions. However, all future applications, renewals and operational requirements will be governed by the Regulations. Therefore, operators who hold licences issued under any one of the repealed regulations mentioned above will have to demonstrate compliance with the new standards and conditions imposed by the Regulations upon renewal.