In January, the House of Representatives passed a new law regulating the registration and operation of self-catering accommodation and which is directed at operators currently using online platforms such as Airbnb and Booking.com. Under this law, owners of self-catering accommodation will now have to follow a set of regulations and formalities in order to legally provide their services. The Government is planning to establish a platform that will assist authorities in imposing appropriate controls and taxation on self-catering accommodation. This platform will come in the form of a Register of Self-Catering Accommodations, which will be kept by the Deputy Ministry of Tourism. The meaning of the term “self-catering accommodation” has been defined by the Law as: ‘either a single tourist furnished mansion, or a single residence, or a single apartment’. The renting of self-catering accommodation is now prohibited, unless certain conditions are met. The Law now requires that the owners and/or rightful users of self-catering accommodation will have to complete and submit an application for the registration of their self-catering accommodation to the Deputy Ministry of Tourism. The application carries a fee, which will vary according to the type of the self-catering accommodation. The submitted application must also be accompanied by documentation proving that the self-catering unit has been registered with the Tax Department and has received either a Tax ID or a VAT number, depending on which is applicable. The unit must be insured against any danger, including fire and public liability.

The Deputy Ministry of Tourism shall examine each application within 2 (two) months from the date of submission of the application and upon a successful application, each self-catering accommodation will be provided with a registration number and a licence. The registration licence will not be issued for an indefinite period of time. It shall be valid for 3 (three) years only and upon its expiry the owner will need to apply for its renewal.

It is important to underline that the registration number of each unit will need to be publicised on every advert and/or any form of marketing of the self-catering accommodation (i.e. platforms such as Airbnb and/or Booking.com), as well as in all relevant transactions. The new Law states that whoever advertises or operates a self-catering accommodation without the appropriate number and licence registration in place, may be guilty of an offence which could carry a prison sentence of up to one (1) year and/or a fine not exceeding five thousand euros (€5,000).