roi.mt

Malta · Rental Investment

What does your property really yield?

By Ian Grima Mahoney · Updated May 2026

Models stamp duty, closing costs, TA24 flat tax and progressive tax — so you see true net yield, not the gross number agents quote. Data current as of April 2026.

Net rental yield in Malta is materially different from the gross figure once you layer the right tax regime. The calculator runs all three Maltese options — the TA24 flat 15% election, Article 31E 5% for Housing Authority-listed leases registered with DIER, and progressive income tax through the 2026 MTCA bands — alongside stamp duty (5% standard, with first-time-buyer relief on the first €200k), notarial fees, management costs, and insurance. Headline cash-on-cash typically shifts 200–400 bps depending on which tax regime you elect. Budget 2026 left rental tax bands unchanged but reframed the wider household tax picture, so your net yield may look different once you factor in changes to income tax bands for couples.

Need help on the tax decision? Read the guide: TA24 or progressive tax in Malta — which costs you less? →

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€
Typical Sliema 1-bed: €1,100–1,500/mo (Jan 2026)
Buyer type ?Affects stamp duty. First-time buyers pay 0% on the first €200k (permanent from Oct 2025). UCA / vacant properties get 0% on the first €750k until Dec 2026.
Property type ?UCA (Urban Conservation Area) properties or those vacant for 7+ years pay 0% stamp duty on the first €750,000. Scheme extended to 31 Dec 2026.
Self-manage (0%)
Percentage of annual rent. 18% VAT is added automatically. Industry-typical Malta rate is 10% (effective 11.8% with VAT).
Tax method ?TA24 is Malta's flat 15% withholding tax on gross rent — simple, no deductions. Progressive tax adds rent to your income and taxes at your marginal rate, but allows deductions for mortgage interest and a 20% maintenance allowance.
TA24 is the most common choice for Malta landlords with low debt.
Rebate: €200 (1bd) / €300 (2bd) / €400 (3+bd) on 2–3y leases; €300 / €400 / €500 on 3+y leases. Capped at 15% of rent.

Frequently asked questions

What is TA24 and when does it apply?

TA24 is Malta's flat 15% tax on residential rental income, permitted by Article 31D of the Income Tax Act. Charged on gross rent — no deductions for mortgage interest, repairs, management fees, or any other expenses.

You elect it annually via the TA24 form filed with CFR by 30 April. Once elected for a year, it applies to all your rental properties — you can't pick and choose per-property.

Should I elect TA24 or progressive income tax?

TA24 wins with high gross rent and few deductible expenses — typically a paid-off property with low maintenance.

Progressive wins when you have lower gross rent or significant deductible costs (mortgage interest, major repairs, agent fees), because progressive taxes only the net while TA24 taxes the gross.

The TA24 Decision calculator finds the exact tipping point for your numbers.

What is the Housing Authority 5% scheme (Article 31E)?

Article 31E offers a 5% flat tax on rental income — a third of TA24's rate. The catch: the property must be leased through the Housing Authority's affordable rental scheme for at least 7 years, and HA sets the rent ceiling (typically below open-market rates).

For most landlords, the rent cap erases the tax savings. For the few whose property fits HA's eligibility band and who're committed long-term, the savings are substantial.

Verify exact eligibility, rent caps, and current scheme terms with cfr.gov.mt or the Housing Authority before relying on this rate.

How is rental yield calculated — gross vs net vs cash-on-cash?

Gross yield = annual rent ÷ purchase price. The headline number agents quote.

Net yield = (annual rent − annual costs) ÷ total cash invested. Total cash invested means purchase price + stamp duty + closing costs + initial works. This is the only number that matters for actual return.

Cash-on-cash uses the same net rent but divides by your equity (deposit + closing costs) rather than the full property value. The more honest leveraged-investment number when you've taken a mortgage.

Which costs should I deduct from gross rent?

For a typical Maltese investment property:

  • Income tax — TA24 15%, progressive, or Article 31E 5% as applicable
  • Property management fees — typically 8–12% if outsourced
  • Maintenance reserve — 5–10% of annual rent
  • Insurance — around €200–€500/year for a typical apartment
  • Vacancy — rule of thumb 4–6 weeks/year between tenants
  • Mortgage interest — if the property is leveraged

Stamp duty and closing costs are one-off; amortise across your hold period for cash-on-cash, not deducted annually.

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