Malta to clamp down on unlicensed Airbnb rentals with three-year ban

Apartment and property owners operating short-term rentals without a licence in Malta are set to face a three-year prohibition, under new draft regulations from the Malta Tourism Authority (MTA), effectively curbing a significant segment of the unregulated market.

The move reflects growing concern among residents over the impact of platforms such as Airbnb on neighbourhoods, where the proliferation of short-term lets has been linked to rising noise, waste and community disruption.

Official figures suggest that 6,000 short-term let units were licensed until 2024, with a further 1,500 authorised by October 2025. However, industry insiders estimate that as many as half of all units on the island operate without a permit.

Enforcement has been limited: this year, only 177 illegal units have been identified by the MTA, according to a recent parliamentary question.

Under the proposed legislation, operators found without a licence would be blacklisted and barred from obtaining one for a period of three years.

The rules would also impose capacity limits – no more than two people per bedroom and six per unit – require 24-hour availability to handle complaints, and mandate disclosure of contact information to neighbours in apartment blocks.

Additional measures include compulsory waste management plans and the potential designation of areas where short-term lets would be prohibited, mirroring restrictions introduced in major cities elsewhere in Europe.

Industry stakeholders welcomed the reforms but cautioned that success depends on enforcement, which is usually not a high priority for the government.

“It is very easy to enforce, as one only has to look at what is available online,” a source told The Shift, noting that many listings continue to operate illegally despite longstanding regulations.

Across Europe, cities are increasingly tightening controls on short-term rentals.

Barcelona has frozen new licences, Amsterdam limits rentals to 30 nights per year, Florence has banned short-term lets in its historic centre, and several French cities have introduced restrictive regimes to protect residents.

The proposed MTA measures represent an effort to align Malta, which is already struggling with overtourism, with international best practices, striking a balance between tourism growth and community protection. However, their effectiveness will depend on the authorities’ willingness to enforce them.