Guide to Rent An Office In Malta

Looking to rent an office in Malta? Although commercial real estate market is quite advanced and very active in Malta you still can face a few challenges, especially if it's your first time. We at Office Market created a guide to help you to rent an office in Malta.

When should I start Looking to Rent an Office in Malta

Let’s start with when you should start looking to rent office in Malta. Our recommendations will depend on the size and type of the office.

For smaller offices, we suggest you start a search at least a month before the office is required; For medium-sized offices (under 500 sq m), ideally, you start looking between 3 and 6 months before (if you are currently under a contract on another office, always check the notice period that needs to be given); For larger offices, ideally, you start your search between 6 and 12 months before, since availability can be limited and usually they would need finishing/alteration, which will take time.

If you are not sure what size office you’ll require when started planing how to rent an office in Malta, jump on the section named “How Much Office Space Do I Need?” further down in this guide.

In Which Area Should I Rent an Office in Malta?

Although Malta is a very small island, prices vary a lot depending on the area. Here, literally a few hundred meters create a difference. When deciding where to rent an office in Malta, consider locations with easy access to transportation, business hubs, and amenities, such as Sliema, St Julians, Gzira to ensure convenience and visibility for your business. The most expensive area and most sought-after, especially by iGaming, Finance and Tech companies, is the East (Sliema, St Julians, Gzira, and the surroundings), and if you want to be close to the hustle and bustle, we suggest this area, with lots of restaurants, bars, hotels, and business centers. 

A more economical and easily accessible area from most other areas is the center of the island (Mriehel, Birkirkara, Mosta, Naxxar, etc.). A lot of businesses are shifting to this area since they can have more space for a lower rent. Although prices are increasing, they are still lower than in the East, and you can still find good offers. 

Other areas, like the capital city of Valletta, are ideal for law firms and shipping companies since there is a court and it overlooks the Grand Harbour. The south is ideal for airline companies and freight since it’s close to the airport and the freeport; in the north, usually, you’ll find only stand-alone offices and not business centers. 

Which Type of office should i rent?

There are four main types of offices you should know about if you’re looking to rent an Office in Malta: Serviced Offices; Stand Alone Offices; Commercial Office Buildings and Business Centres.

Serviced offices

Ideal for start-ups or small companies; usually, they offer flexible plans, so they will be ideal if you are planning for fast growth. The benefit of using a serviced office is that everything will be included and you do not need to pay for additional services or buy furniture. On the other hand, it will be more costly, especially if you are looking to rent an Office in Malta for the long term. 

Stand-alone offices

Usually on the ground floor with their own entrance and can be either under a commercial or residential block. These offices usually have more exposure and are ideal if you are looking to use them as a branch or satellite office while expecting walk-in clients. 

Most offices in Malta are located in commercial blocks, which are smaller than a business center. The advantage of renting an office in a commercial block is that it will be cheaper than renting in a business center. The disadvantage is that some of these spaces are not as modern and don’t offer the same amenities as business centers. 

Office in a business centre

Rent an Office in Malta’s business centres is convenient as it comes with lots of advantages, especially if a company has clients visiting their office. They offer most amenities you might need, like security, a receptionist, multiple elevators, a backup generator, etc. Since they come with more amenities, prices tend to be higher, and the common/maintenance costs are also higher. 

What Size office space do I need?

Size depends a lot on the number of employees, layout (open space or closed offices), additional rooms needed (meeting rooms, lounge areas, etc.), and if you are planning to rent an office in Malta for growth. 

In the case of a closed office layout, you would need approx. 10 square meters per person and then add the additional rooms on top. On the other hand, with a co-working open-space layout, you can fit more people in a smaller office or have larger entertaining areas if needed. 

Also note that if you are planning to grow in a short period of time, it would be better to rent an office in Malta of a larger size since agreements are usually signed for the long term and changing offices is costly and time-consuming. 

We created an Office Space Size Calculator to help you calculate the approximate office size if you’re in need to rent an Office in Malta.

What different types of layouts and Finishes there are?

The ideal layout would be an office that is divided according to your needs, but it is rarely possible to find an office that matches exactly your requirements. There are two main options: 

Open-space office:

You can divide them into your own needs and requirements, although this would be more costly and time-consuming since work needs to be done. 

Already divided office:

You rent an office that is already divided, so you’ll avoid the cost and time of doing it yourself, but this might have wasted space since it was done to another company’s specifications. 

Most new offices are finished, including plastering, tiling, power points, air conditioning, and common areas. The network cabling, divisions of rooms, and furnishings are usually at the tenant’s expense. 

In the case of an office that was rented before, it might have the network and partitioning ready (if they fit your specifications). Most of the time, the previous tenant would take the furniture, or resell it if they were leaving the island. 

How Much Will It Cost To Rent An Office? 

Offices are usually quoted at a monthly price or per square meter (per year), which makes it easier to compare the value of one to another. As mentioned before, the prices depend on the location. Below are the approximate prices per square meter for each area: 

Central – €125 to 200 per sqm
East – €225 to 300 per sqm
Grand Harbour – €200 to 300 per sqm
North – €100 to 150 per sqm
South – €100 to 150 per sqm
West – €100 to 150 per sqm

We suggest you try our Office Space Price Calculator to find out the approximate pricing by size and area.

Something to keep in mind when you are planing to rent an Office in Malta is the payment terms, which vary depending on the agreement; usually it is between 3 and 6 months rent in advance, but some landlords accept monthly payments while others want payments every year (which is rare). 

Prices and terms are subject to negotiation. To help our clients get a better price and terms, we gather all the information (duration of the agreement, payment term, starting date, etc.) before passing an offer to the landlord. Once we have all the information, we present the offer to the landlord and do our best for you to close on the office. 

What is the duration of a commercial agreement?

Commercial agreements are usually for a minimum of 2 years, Di-Fermo (explained below), or longer for large spaces. If you require to rent an Office in Malta for less than a year, we suggest renting a serviced office since they offer flexible terms. 

When signing a commercial agreement to rent an office in Malta, the lease term is usually divided into two parts: the Di-Fermo period, where the tenant agrees to rent the space till the end of this term; and the Di-Rispetto period, where the tenant has the right to move out without any penalties (with a notice period stipulated in the agreement) or keep leasing the premises with the same terms. 

e.g., a client rents an office for a 5-year term with 2 years of Di-Fermo and 3 years of Di-Rispetto (with a 3-month notice to cancel the agreement). At the end of the 2nd year, if the tenant would like to move out, he or she should give a written notice 3 months before the end of the 2nd year, and he or she can move out without any penalties (unless other clauses were broken in the agreement). The client cannot leave before the end of the second year unless a mutual agreement is made with the landlord. 

How much is the agency fee to Rent an Office in Malta?

Office Spaces Priced Up to €3,000/Month + VAT

For office spaces with a rental price up to €3,000 per month (excluding VAT), the agency’s fee is 10% of the first year’s agreed-upon rental price plus VAT. This fee reflects the comprehensive services we offer, from property search and negotiations to finalising the rental agreement. The fee is a one-time payment to rent an Office in Malta, required upon the signing of the rental agreement.

Office Spaces Priced Between €3,000 and €6,000/Month + VAT

For office spaces with a monthly rental price between €3,000 and €6,000 (excluding VAT), the agency’s fee is set at 7% of the first year’s agreed-upon rental price plus VAT. This rate ensures that you receive expert guidance and support throughout the leasing process, at a fair and competitive fee. As with all our fee structures, this is a one-time payment due at the time of signing the rental agreement.

Office Spaces Priced Above €6,000/Month + VAT

For office spaces with a rental price exceeding €6,000 per month (excluding VAT), the agency’s fee is 5% of the first year’s agreed-upon rental price plus VAT. This fee, like the others, is a one-time payment required upon the signing of the rental agreement.

What are the Additional costs to consider?

Apart from the monthly rent, there are a few additional costs that you have to consider when planing to rent an office in Malta: 

Common costs: These costs are paid by the tenant for the cleaning, maintenance, and services of the common areas. 

Insurance: An insurance policy on the premises is required by the tenant. The price depends on the size of the office. 

Utilities: Water, electricity, and internet are not usually included in the rent. 

Furniture: Furniture is usually not included and can be either bought or leased. We can help with this process if needed. 

VAT: Rental prices offered are excluding VAT, and the 18% VAT has to be paid on top of the rent value unless one party is not VAT registered or the business falls under a certain article (check with your accountant) that is VAT exempt.

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