Regulations, 2024 Grant of a Temporary Emphyteutical Concession to the Emphyteuta,
Tenant or Operator of Government-Owned Commercial Property
Legal Notice 131/2024 – 4th June 2024
Who is eligible to benefit from this scheme?
Applications shall be submitted to the authority by an applicant having any of the following:
- a valid emphyteutical concession recognised by the authority;
- a valid commercial lease granted by the authority;
- an ongoing operations agreement with a tenant authorizing him to operate a commercial property and the declaration specified in sub-regulation (3 of the Legal Notice;
- a valid title of a casa bottega recognised by the authority prior to the date of entry into forceof these regulations.
Which classes of properties are recognised as commercial properties for the purposes of these
regulations?
(a) Class 2B – Non Residential Institutions;
(b) Class 2C – Education;
(c) Class 3A – Guest Houses, Palazzini, Boutique Tourism Accommodation and Hostels;
(d) Class 3B – Hotels;
(e) Class 4A – Financial, Professional & Other Offices;
(f) Class 4B – Retail;
(g) Class 4C – Food and Drink Establishments where no cooking is allowed;
(h) Class 4D – Food and Drink Establishments where cooking is allowed;
(i) Class 5A –Light Industry;
(j) Class 6A – Storage and Distribution.
Which uses shall be considered for the purposes of these regulations?
(a) amusement arcade or centre;
(b) dance or wedding hall;
(c) discoteque or similar places of assembly;
(d) taxi business, hire of motor vehicles, public service garage, sale or display of motor vehicle;
(e) diving schools and, or acqua lung fillers;
(f) food takeaways, including pastizzeria;
(g) washing or cleaning of clothes or fabrics in coin or credit operated machines or on premises at
which the goods to be cleaned are received direct from the public;
(h) bakery;
(i) conference or public assembly centre;
(j) supermarkets;
(k) bingo halls, casino, gaming shops, betting shops (excluding lotto offices);
(l) retail outlets selling fire arms.
How long Is the term of each emphyteutical concession?
If all applicants satisfy the criteria as per Legal Notice 131/2024, the new emphyteutical concession
term shall be for a period of fifty (50) years. The annual ground rent shall be increased every ten (10)
years at the simple interest rate of ten per cent (10%) computed over the current ground rent.
My lease agreement expired before the publication of this Legal Notice. Can I apply for this scheme?
Expired leases i.e. leases which expired prior the publication of Legal Notice 131/2024 do not qualify
for this scheme.
Which properties are excluded from these regulations?
- kiosks;
- boathouses;
- scheduled properties;
- properties which are not fully owned by the Government and which were not registered accordingly; properties originally disposed of by a Special Resolution of the House of Representatives.
Approved concessions can be leased to third parties?
The emphyteuta may lease the property to third parties subject to a written authorisation from the
authority and subject to the payment of an administrative fee equivalent to fifty per cent (50%) of
the ground rent determined by the authority.
How shall the annual ground rent be calculated?
Every valuation in relation to these regulations shall be in conformity with the provisions of article 79
of the Act. In each case, the valuation carried out shall consider the property market values as of the
application submission date, while taking into consideration the condition of the property, including
any improvements made by the tenant. The applicable ground rent shall be of a value equivalent to
two per cent (2%) of the freehold value as determined by the valuation.
What is the process to validate an application?
Any application submitted to the authority shall be considered valid only after all the necessary
requirements listed in the application form have been satisfied. The authority shall have the right to
request any other information or documentation which it deems necessary to process the application.
The authority shall have the right to suspend, and where it deems necessary deny, any application
submitted in accordance with these regulations where it results that there is a legal challenge in
respect of the property to which the application relates. In the case of a withdrawn application at any
stage of the process prior to finalisation of the application process and publication of the deed, all fees
and expenses incurred by the Authority shall be borne and paid by the applicant and the applicant
shall not be entitled to any reimbursement of payments effected in relation to the application.
What happens in case an applicant passes away during the application process?
Following the submission of the application, there shall be no change in the applicant unless it results
from a causa mortis declaration that the rights over that property, which is the subject of the
application, have been transferred to the person who is requesting such change.
Application fees?
All applications shall be subject to an initial and non-refundable submission fee of one thousand five
hundred euro (€1500). Applications for properties with a footprint exceeding an area of one thousand
five hundred square metres (1500 sqm) shall be subject to an additional fee of one euro (€1) per square
metre up to a maximum of five thousand euro (€5000). Fees are non-refundable. Hence applicants are
to scrutinise criteria requested in the Legal Notice 131/2024.
Application may be accessed via the link provided hereunder:
https://onlineportal.landsauthority.org.mt/Application/GLA30