Private Residential Leases (Tax Rebate) Rules, 2020

July 02, 2020 | 2 minute read

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Private Residential Leases (Tax Rebate) Rules, 2020

On the 23rd June 2020, by virtue of Legal Notice 258 of 2020, the Private Residential Leases (Tax Rebate) Rules were published, bringing into force a new tax rebate system applicable to private residential leases that exceed two years and for which the lessor has opted for the 15% final tax system of taxation.

The rules apply to income derived on or after 1st January 2020 from a private residential lease with a duration of two years  or  more  that  is  registered  with  the  Housing Authority  as  a  long  private residential lease in accordance with the Private Residential Leases Act. In relation to the duration period, the duration of a lease shall be arrived at by reference to the original period as agreed in the relative contract, and no regard shall be taken of any period of  renewal or extension of the original period.

The amount of the tax rebate depends on the duration of the lease and the number of bedrooms in the respective property as per below table.

Duration of the Lease Number of Bedrooms Tax Rebate
At least two years but less than three years One €200
Two €300
Three or more €400
Three years or more One €300
Two €400
Three or more €500
The rebate is in the form of a deduction from the tax chargeable at 15% for the particular year as declared in the TA24 form. The Housing Authority shall provide details of those qualifying leases to the Inland Revenue Department.

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