Private Residential Leases (Tax Rebate) Rules, 2020

Introduced by means of Legal Notice 258 of 2020, such rules apply to income derived on or after 1st January 2020 from a private residential lease. Such lease must be of a duration of at least 2 years and is registered with the Housing Authority as a long private residential lease. For the purposes of these […]

Written By Elaine Camilleri

On June 27, 2020
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Introduced by means of Legal Notice 258 of 2020, such rules apply to income derived on or after 1st January 2020 from a private residential lease. Such lease must be of a duration of at least 2 years and is registered with the Housing Authority as a long private residential lease. For the purposes of these regulations, the duration of the lease refers to the original period agreed in the lease contract and does not include renewal or extension of such original period.

The tax rebate granted under these rules applies where the rental income derived from the above mentioned lease is subject to withholding tax of 15% on the gross rental income. The amount of tax rebate depends on the duration of the lease and the number of bedrooms, as per the following table:

The above tax rebate applies for every year of the lease and with respect to those years in which the lease commences or is terminated, the amount of tax rebate shall be calculated pro rata. The tax rebate cannot exceed the amount of tax due on such rental income for that respective year.

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax rules and how these can impact your business.  

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected].