The rent in the advert is not the money you keep. Put vacancy, tax, running costs and the mortgage back into the picture. Then see what the property earns, not just what it might sell for.
Start with price and rent. The extra inputs turn an attractive gross yield into a working cash-flow estimate.
Simple explanations, visible assumptions and no black-box verdict.
Gross yield compares advertised annual rent with price. Net operating yield deducts vacancy and operating costs before finance. Cash-on-cash compares the cash left after debt service with the cash you actually invested. None is a guaranteed return.
The rent stops while some bills continue. This model keeps fixed annual costs in place and charges the entered tax and management percentages on rent actually received. Test two additional empty months before relying on a full calendar.
Enter the upfront amount you really expect to pay. The Housing Authority first-time buyer grant is paid over ten years, subject to conditions; it is not EUR 10,000 instantly deducted at completion. Ask your notary about duty and exemptions.
Selling for a large sum also returns capital you put in. The ten-year scenario subtracts initial equity and remaining mortgage debt. It remains a pre-disposal-cost illustration, not a forecast or a realised after-tax profit.
Gross yield uses twelve advertised months divided by price. Net yield uses rent received after vacancy, tax and costs, divided by price plus upfront costs. Cash flow then deducts mortgage instalments. Ten-year profit includes accumulated rental cash flow and sale value less outstanding debt and initial equity; it excludes selling fees, property-transfer tax and time value of money. No automatic grants, AIP eligibility or stamp-duty exemptions.
Stay with the same journey. Take the next calculation only when it answers a real question.
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Continue the journeyRead the limits as carefully as the headline.
No. MTCA describes an optional final tax on qualifying gross rental income. Normal taxation may be chosen instead, subject to the relevant rules. This calculator models a gross-rent percentage, not a progressive personal tax return.
They depend on the buyer, property, transaction and current conditions. A notary should confirm eligibility. Grants paid later do not necessarily reduce the cash needed to complete a purchase.
No. Rent, costs, vacancy, interest rates and resale values can change. Selling costs and disposal taxes are not included. Use the result to test assumptions, not to select an investment on its own.
Do not assume so. Acquisition permissions and conditions can restrict the use of a property; SDA status and buyer circumstances matter. Obtain legal advice on the specific purchase before modelling rental income.
These are dated references, not a live rule feed. Check the latest official documents and your individual circumstances.
FreeMalta provides independent information and scenario tools, not personalised tax, pension, investment, employment or mortgage advice. Results are estimates, not payslips, benefit awards, lending approvals or guaranteed returns. Model snapshot: 4 October 2026. A future budget announcement does not automatically update this calculation.
