How to Pay Tax on Rental Income in Malta — TA24 Explained (2026)

If you rent out property in Malta, you must pay tax on the rent you collect. The main tool for doing this in a simple way is the TA24 form, which lets you pay a flat 15% tax on gross rental income instead of using the standard progressive tax system.

Below is a structured guide to how TA24 works, when it’s beneficial, and how to file it correctly.

What is the TA24 form?

TA24 is the official form used to pay a flat 15% tax on gross rental income under Article 31D of the Income Tax Act.

  • You pay 15% on the total rent collected during the year.
  • The rate is final on that income – no further tax is due on it.
  • Available to individuals and companies, resident or non‑resident.
  • Deadline: 30 April of the year following the rental year.
  • Example: rent collected in 2025 must be declared and paid by 30 April 2026.

15% flat rate vs standard tax return

You can choose between:

Option A – TA24 (15% flat rate)

  • Tax rate: 15% on gross rent (before any expenses).
  • No deductions allowed:
  • No repairs or maintenance
  • No loan interest
  • No ground rent or other costs
  • Simple: one form, one payment.
  • Separate from your tax return: you do not include this income again in your annual return.

Option B – Standard tax return

  • Rental income is added to your other income.
  • Taxed at progressive rates (0%–35% for individuals).
  • You can claim deductions, such as:
  • Loan interest on the rental property
  • Ground rent
  • Statutory maintenance allowance and other allowable expenses
  • More calculations and paperwork, but can be cheaper if:
  • Your overall income is modest, or
  • You have high deductible expenses (e.g. large mortgage interest).

Important rule: If you choose the 15% TA24 option, it applies to all qualifying rental properties you own for that year. You cannot mix methods (TA24 for one property and standard return for another) in the same year.

Common mistake: trying to deduct expenses under TA24

Under TA24, the 15% is charged on gross rental income – the full amount your tenants pay you.

You cannot deduct:

  • Renovations or improvements (e.g. a new boiler)
  • Repairs and maintenance (e.g. plumbing fixes)
  • Agency fees
  • Loan interest
  • Any other running costs

If you expect high expenses in a particular year, it may be worth comparing the 15% TA24 option with the standard tax return before deciding.

VAT on rental income

For standard long‑term residential letting in Malta:

  • The rent is exempt from VAT under the VAT Act.
  • You do not charge VAT to tenants.
  • You cannot reclaim VAT on related expenses (e.g. furniture, renovations).

For short‑term tourist rentals (licensed accommodation):

  • Different rules apply, including a 7% VAT rate and eco‑contribution obligations.
  • This setup is separate from the standard TA24 process and follows its own VAT and licensing rules.

Housing Authority rebate – reduce your effective tax rate

If your lease is registered with the Housing Authority as a long private residential lease of 2 years or more, you may qualify for a tax rebate that reduces your effective tax rate below 15%.

Key points:

  • Available on qualifying long private residential leases.
  • The rebate depends on:
  • Length of the lease, and
  • Number of bedrooms.
  • In favourable cases, the rebate can reduce the effective tax rate close to zero on that lease.
  • You claim the rebate directly in the online TA24 form – it is not automatic.

There is also an additional incentive:

  • Properties rented to the same tenant for more than 7 years under a Housing Authority scheme may qualify for a 5% tax rate under Article 31E.

Always ensure your lease is properly registered and review the rebate section carefully when filing TA24.

What if you don’t declare rental income?

Failing to declare rental income is a serious compliance issue. Potential consequences include:

  • Losing access to the 15% flat rate option.
  • Being taxed at up to 35% on gross rental income.
  • Interest and penalties on unpaid tax.
  • Possible investigation by the tax authorities.

Submitting on time, even if you later need to correct figures, is far better than missing the deadline or not filing at all.

Individuals vs companies

Individuals

  • Paying via TA24 fully settles your tax on that rental income.
  • You do not include this rental income again in your personal tax return.

Companies

  • The 15% under TA24 is also a final tax on that rental income.
  • The profits must be allocated to the Final Tax Account under Malta’s imputation system.
  • Your accountant should handle the accounting entries, but you should be aware of this requirement.

Related parties: Rent received from related parties (for example, a company in which you hold more than 25%) does not qualify for the 15% flat rate.

How to file the TA24 step by step

  1. Access the portal

Go to the Inland Revenue Department online portal.

  1. Log in

Use your Maltese eID or other tax credentials.

  1. Select the correct TA24 form

Choose the TA24 for the relevant tax year (e.g. 2025 income filed in 2026).

  1. Enter your gross rental income
  • Add up all rent received during the year for all qualifying properties.
  • Use bank statements, receipts, or property management reports as support.
  1. Apply Housing Authority rebates (if eligible)
  • Indicate which leases are registered long private residential leases.
  • Ensure the rebate details are correctly entered.
  1. Calculate and pay
  • The system will compute the 15% tax (and any applicable rebates).
  • Pay electronically through the portal.
  1. Submit by the deadline
  • Ensure submission and payment are completed by 30 April of the following year.
  • Save or print the confirmation and keep it with your records.

Record‑keeping

Keep clear records of:

  • All rental agreements and Housing Authority registrations.
  • Rent received (bank statements, receipts, management reports).
  • Any communications with tenants and the tax authorities.

Good records make it easier to:

  • Complete TA24 accurately.
  • Respond to any queries or audits.
  • Compare the 15% option vs standard return in future years.

Quick summary

  • TA24 is the form to pay 15% flat tax on gross rental income in Malta.
  • Deadline: 30 April of the year after the rental year.
  • Under TA24, no deductions are allowed – tax is on gross rent.
  • Alternative: declare rent in your annual tax return and claim deductions, taxed at progressive rates.
  • Residential lettings are VAT‑exempt; tourist/short‑term rentals follow different VAT rules.
  • Register leases with the Housing Authority to access tax rebates and, in some cases, a 5% rate for very long tenancies.
  • Not filing can lead to 35% tax, interest, penalties, and possible investigation.
  • The 15% option applies to all your qualifying properties for that year – you cannot split methods.

Make renting in Malta simpler

Managing leases, tracking rent, and staying on top of tax deadlines can be challenging, especially as rules evolve. Digital tools like Letify aim to help landlords:

  • Organise properties, leases, and tenant information.
  • Track rental income and key dates.
  • Stay compliant with Maltese rental and tax rules.

You can list your property on Letify to reach verified tenants directly, without agents or hidden fees, while keeping your rental and compliance workflow in one place.