Rent reform Bill published

The proposed thresholds on commercial rents have been removed in the rent reform Bill which was published this evening.

Existing commercial contracts will not be affected.

Another major change is a reduction in the withholding tax that will have to be paid if an owner decids to sell a property to a tenant who would have been renting the property for five years.

Political party clubs, which were previously excluded from the reform, will now be included from January 1, 2010. There are also provisions for social clubs.

The Bill was preceeded by a White Paper that was launched for consultation in June. Its aim was to gradually phase out Malta's pre-1995 rent laws, based on protecting the tenure of current residents, ensuring rents will be fair, and enabling landlords to eventually repossess their properties.

While generally praised as the first step towards eradicating the "biggest social injustice" Malta faced today, several social partners made recommendations for changes during the consultation period that closed at the end of summer.