“Malta packs glorious variety into its small archipelago. You’ll find prehistoric temples, fossil-studded cliffs, hidden coves, thrilling scuba diving and a history of remarkable intensity.” – Lonely Planet.
Be it on holiday, or for a more permanent stay like a business venture, a fresh start, or even retirement, Malta is definitely one to visit. That being said, finding where to set up shop might be tricky, especially in today’s fast changing property market. In the Maltese property market, there are two types of rental properties; Commercial Lets & Residential Lets:
These must have a commercial license and are properties such as shops, warehouses, restaurants etc. These properties are generally leased out on a 5-10 year agreement and more often than not require a deposit equivalent to 3 or so months’ rent. The standard Agency Fee on a Commercial Lease Agreement is that of 10% of 1 year (plus vat) from both parties (ie. Lessor & Lessee) Should Key Money be involved, the standard 5% Agency Fee (plus vat) on this amount also applies to the Lessor alone.
These properties are those such as apartments, maisonette, villas, garages etc. These types of rentals can be further divided into two main types: Long Lets & Short (or Holiday) Lets. Although both types of lease could apply to a residential property, the terms of rental differ greatly from one type to the other. Here are the main differences between them:
From the above one can conclude that unless you are visiting Malta on a short stay of not more than a few weeks; in which case a Short Let property would be more cost efficient than a hotel, then your best way forward would be to commit to a rental agreement to at least 6 months. That being said, it is always best to speak to your property consultant and let them know your situation so that they can explain to you your options and help you in making the right choice for you.