SME Chamber and Malta Developers Association slam controversial Identità lease attestation form

Both the Malta Chamber of SMEs and Malta Developers Association have come out swinging against a new procedure introduced by Identità, which will require lease agreements presented for residence permit applications to be attested by a notary, lawyer, or legal procurator.

The procedure was meant to come into effect earlier this month, but faced significant backlash from all quarters, with the Notarial Council of Malta ordering its members to sign no such attestation forms, saying the document does not guarantee that the signatures on a rental contract are genuine.

The procedure was put on hold for a time but will now come into force after Identità reached an agreement with the Notarial Council of Malta, the Chamber of Advocates, and Legal Procurators, following extensive consultations.

Effective from Monday 23rd September, the form is said to strengthen compliance among tenants and landlords.

The Malta Chamber of SMEs

The Malta Chamber of SMEs, representing a significant number of landlords, issued a press release earlier today to express its disappointment over the recent procedure introduced by Identità.

While the SME Chamber says that it supports increased controls to curb abuse to protect national interests and security, it believes that the new procedure fails to address the practical needs of the industry.

It added that this change introduces unnecessary bureaucracy, especially when renting to third country nationals, complicating the process for both landlords and tenants. “Instead of resolving long-standing inefficiencies and abuses that were allowed to occur in the past years, landlords and tenants are now being directly penalised for these systemic shortcomings” the SME Chamber said.

The Malta Chamber of SMEs concluded by saying that it is particularly concerned that the procedure will not resolve the underlying problems it is meant to address, while also placing an undue burden on landlords and tenants, penalising the whole sector.

The SME Chamber highlighted that it has put forward proposals which aim to ensure compliance while adopting a more efficient, streamlined approach.

The Malta Developers Association

In a press release also issued today, the Malta Developers Association (MDA) stated that it held discussions with Identità, proposing solutions to address the abuse related to third-country nationals registering fake leases, often without property owners’ consent.

The MDA said that in one of the discussions, it suggested that licensed agents, who play a key role in leasing, could oversee contract signings, and that property owners should verify the existence of leased properties. They claimed their system is more efficient and less bureaucratic than Identità’s.

The MDA also proposed that a verified copy of the parties’ identity cards be used instead of requiring a visit to a professional for every new lease. This measure, along with the existing registration system with the Housing Authority, achieves the same effect: it assures Identità that the registered lease in the residence application was made with the owner’s consent.

The MDA expressed concerns about the additional burden and costs on property owners, criticising the added bureaucracy. It also voiced disappointment over its proposals being disregarded, urging thorough consultation with stakeholders before implementing new procedures.

Finally, the MDA stressed the need for better cooperation between authorities to reduce unnecessary bureaucratic processes, which they argue are costly for the Maltese public.