🎯 STRisker: Bulletin - Malta
Licensed STR operators must collect €1.50 per person per night starting Q3 2026 with a new per-stay cap and local council revenue share
Malta Triples Eco-Contribution on Tourist Nights from July 1
Photo by Mike Nahlii on Unsplash
Malta's Environmental Contribution on tourist overnight stays tripling to €1.50 per person per night on 1 July 2026 will be the first rate change since the levy launched a decade ago. The increase was written into law through the Budget Implementation Act 2026 on 10 March 2026 and applies to every licensed accommodation provider across the Maltese Islands.
On 7 May 2026, Deputy Prime Minister Ian Borg separately announced that a Labour government would introduce a new tax credit scheme for tourist accommodation operators who invest in renovation and quality upgrades, though no rate or eligibility criteria have been specified.
The new regulations will close enforcement gaps and align existing regulations with the Maltese Islands’ strategic shift towards a higher-value tourism offering, while safeguarding the wellbeing of local communities.
- Deputy Prime Minister and Ministry for Foreign Affairs and Tourism, Ian Borg
While the rate increase draws the headline, the restructured per-stay cap carries equal weight for operators managing longer bookings. The old €5 ceiling in place since the levy launched on 20 June 2016 has been replaced with a €22.50 cap per person per visit reached after 15 consecutive nights. A "visit" means an uninterrupted stay at licensed premises.
The amended Act also addresses multi-property stays: gaps of up to 15 nights in unlicensed accommodation do not reset the cap and those nights are not chargeable. Licensed operators will continue to file quarterly returns with the Malta Tax and Customs Administration and the Minister may now update rates by regulation without returning to parliament.
Beyond the rate itself, the revenue allocation structure has changed in a way that directly ties accommodation levy income to local communities. Parliamentary Secretary Alison Zerafa Civelli confirmed that 50 cents from each €1.50 contribution will go directly to local councils and will be distributed according to tourism activity in each locality. The remaining €1 flows to central government for infrastructure and environmental improvements in tourist areas. At 2024 visitor volumes of roughly 22.9 million guest nights, the new rate is projected to generate around €34 million annually which is up from €11–12 million under the previous rate.
While the proposed tax credit scheme for accommodation providers is framed as part of Malta's broader push toward quality tourism, it remains a manifesto pledge with no legislative backing. It is described as targeting Malta Tourism Authority-licensed providers who invest in renovation, service standards and guest experience. Malta Enterprise has administered a similar refurbishment tax credit for licensed accommodation in the past and the new scheme would likely follow that model. Details on eligibility thresholds, credit rates and application procedures are expected once a new government is formed.
Operators must collect the eco-contribution separately from the room rate and show it as a VAT-exempt line item on guest invoices excluding it from any platform commissions. Airbnb and Booking.com do not remit the contribution on behalf of hosts in Malta as the license holder bears ultimate responsibility for collection and quarterly reporting even where a third-party operator manages the property.
◘ Effective: 1 July 2026
◘ New rate: €1.50 per person per night (up from €0.50)
◘ Per-stay cap: €22.50 per person per visit after 15 nights (previously €5 after 10 nights)
◘ Visit definition: Uninterrupted stay at licensed premises; gaps of up to 15 nights in unlicensed premises do not reset the cap but are not chargeable
◘ Who pays: Guests aged 18 and over regardless of nationality
◘ Who collects: All licensed providers including apartments, farmhouses, villas and host families
◘ Revenue split: €0.50 per contribution to local councils; €1.00 to central government
◘ Reporting: Quarterly returns to the Malta Tax and Customs Administration; license holder remains liable where collection is delegated
◘ Platform remittance: Not applicable; Airbnb, Booking.com and other platforms do not remit on host behalf in Malta
◘ Tax credit scheme: Manifesto pledge only, not yet legislated
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