Direct Answer
Gross rental yields in Malta typically range from 4–7%, depending on location, property type, and whether you pursue long-let or short-let. Smaller apartments in harbour towns yield 5–7%. Gozo and southern Malta offer higher yields of 6–8% due to lower purchase prices.
Gross yield = annual rent ÷ purchase price × 100. A €250,000 apartment renting for €1,100/month generates a gross yield of (€13,200 ÷ €250,000) × 100 = 5.3%. Net yields (after costs) are typically 1–2% lower.
Harbour area (Sliema, St Julian's, Gzira): 4–6% gross. Central Malta (Birkirkara, Mosta, Attard): 5–7%. Southern Malta: 6–8%. St Paul's Bay / north coast: 5–8% (higher with short-let). Gozo: 6–9%.
Studio and 1-bedroom apartments consistently deliver the best yields relative to purchase price. Demand is highest for small units (expat singles and couples) and the purchase price per unit is lower than larger properties. 2-bedroom apartments offer a good balance of yield and capital appreciation.
Short-let (Airbnb/holiday rental) can deliver 8–15% gross yields in high-demand areas and beach towns, but requires active management, seasonal voids, and compliance with Malta's furnished premises regulation. Long-let is more passive with lower yield but consistent income.
Annual costs include: property management (8–12% of rent if using an agent), maintenance (budget 1% of property value/year), Maltese property tax (15% of rental income or 35% if declaring on personal tax), ground rent (if applicable), insurance, and vacancy periods.
Malta offers a stable legal system, EU membership, high demand from expats and tourism, limited land supply, and attractive yields compared to northern European markets. These fundamentals support investment.
Rental income in Malta can be taxed at a flat rate of 15% of gross rent (the most common approach for individual landlords) or at the progressive personal income tax rate. The 15% flat rate is generally most efficient.
Malta offers higher liquidity (more buyers and renters). Gozo offers higher yields and potential for greater capital appreciation if the market continues to grow. Both are viable — depends on your priorities.
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