Maltese landlord and tenant law is pro-landlord.

Houses of Malta Seaview

Rent: Can tenant and landlord agree to rent freely in Malta?

Rent may be freely negotiated at the lease on or after 1 June 1995 of any housing entered into. This paper only covers leases made after that date. adhunt

Rent increases between landlord and tenant may be freely agreed. No law restricts the rent-raising mechanism.

In some ways non-residents are still restricted on the purchase of property in Malta and the lease of property, even after EU membership has been reached. However, luxury buildings owned by non-residents can normally be rented. In addition, in specially designated prestigious areas there are no restrictions on properties purchased.

Deposits for Security

The parties are free to negotiate any deposit. At the start of lease it is common for the landlord to keep a month's rent as a deposit, which will be returned to the tenant at the end of the lease if all of his obligations have been fulfilled.

Rent is usually paid in advance monthly, and rental deposits are usually not collected. In certain circumstances, payment of rent in advance for more than six months can be zero.

In Malta, what rights do landlords and tenants have, especially in terms of contract duration and expulsion?

The parties are free to negotiate any length of time. If the term is more than 16 years, care must be taken in drafting and in the conditions in order to avoid the risk that the lease might be interpreted as an other kind of contract (emphyteusis) for which the parties are not intended.

At the expiry of the rental period, a notice is voluntary, unless it is a contractual condition.

Mediterranean properties of Malta

If the tenant is allowed to continue the tenure after the lease is terminated, the lease shall be considered tacitly renewed under the same terms and conditions, for a term equivalent to the way the rent was agreed. For example, if the rent was agreed for one month at so many times. Tacit renewal does not take place if the tenant is notified of the vacation by the landlord. If the lease is tacitly renewed, the landlord will notify it.

The parties can negotiate reasons for early termination, including allowing the tenant to terminate at will, although this is not common. A near-standard clause allows the tenant (who is not resident) to terminate the rental if he has to leave Malta. A reasonable period of notification is always inserted. If there is a serious violation of express or implied terms of lease, whether or not this is contractually stated, early termination by landlord or tenant is always possible. Any additional grounds for early termination may be negotiated by the parties.

Any lease for more than two years has to be made in writing with nullity pain.

The ordinary courts have jurisdiction in any dispute arising. But the Small Claims Tribunal is exclusively competent for a money claim of up to €2,360. In addition, in case of an asset claim up to €11,800, that is certain, liquidated and due, the claimant may file an official claim in the Court registry, instead of a court case, and if the claim is not challenged within 30 days of service the application is made enforceable as if it were a judgment of the court of law.

The effects of the LEGAL SYSTEM

Rent Collection:

(a) under EUR 11,800:

Where claims are not disputed:

• Completion of demand service (usually): 10 days

• Completion of demand service (usually): 10 days.

• Time to become an enforceable title for application: 30 days

• Demand enforcement (around): 150 days

If the claim is contested, the trial duration:

• Court of Small Claims: 90 days

• Court of Magistrates: 400 days +

• A further 200 days if appealed

• Judgment enforcement (about): 150 days

Rent collection: 0.10 percent

(b) over EUR 11,800: Duration of the trial if claim is contested but the tenant does not give the judge (approximately) a satisfactory prima facie defence:

Duration of trial (if claimed and tenant given a satisfactory defence): 730 days+ Duration of trial

• Another appeal: 1095 days + days •

• Judgment Enforcement (roughly): 150 days

Removal of tenant

If not contested, or if the claim is contested but the tenant does not (approximately) give the juge a satisfactory prima facie defence: 90 days

• If disputed: 400+ - 730 days +

• Another appeal: 200+ - 1095 days+

• A further appeal: 200+ - 1095 days+

The eviction judgment normally allows the tenant to vacate for 2-3 months. If it doesn't -

• Judgment enforcement (around): 30 days

Notes: Only a rough idea can be given. The time depends on many factors including the complexity of the issues, and the individual judge's case load and modus operandi.

Brief History: Recent changes in the landlord and tenant law in Malta

Since 1868, Landlord and Tenant's ordinary law has been the Civil Code provisions mentioned above. In 1939, special "emergency" law was introduced that would give tenants great protection and advantages and the Housing Authority a large powers to apply for premises. This law remains in force - around a quarter of the housing stock is still rent controlled - although requester power has been virtually abolished. Leases entered after 1 June 1995 are, however, excluded from the application of this special legislation by a law enacted in 1995, and common law is applicable.