Short-Term Rental Association Malta Warns €10 Eco-Tax Could Hurt Sector

The Short-Term Rental Association Malta has raised concerns over the Budget 2027 increase in the eco-contribution, which will see the nightly charge for short-term rental guests rise from €1.50 to €10 per person, capped at €80 per stay.

In a statement, the association said the increase was significantly higher than expected, particularly given that the existing €1.50 rate only came into effect in July 2026.

It also highlighted a difference between short-term rentals and hotels, with short-let guests set to pay €2 more per person per night. According to the association, a couple staying for seven nights would pay €140 in eco-contribution alone, compared to €21 under the previous rate.

The association warned that the increase could make Malta less competitive with other Mediterranean destinations, particularly for families and visitors booking longer stays. It also expressed concern that local property owners could face reduced bookings, especially during the winter months.

While stating that it supports investment in infrastructure and the environment, the association described the increase as disproportionate and criticised the lack of consultation with the sector.

It is calling on Government to hold urgent discussions with industry representatives, remove the difference between short-let and hotel rates, and consider introducing the increase gradually while clarifying how the additional revenue will be spent.

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