CONTINUATION OF TENANCIES (MEANS TESTING CRITERIA) REGULATIONS

SUBSIDIARY LEGISLATION 16.11

CONTINUATION OF TENANCIES

(MEANS TESTING CRITERIA) REGULATIONS

1st January, 2010 *

LEGAL NOTICE 463 of 2011, as amended by Legal Notices 154 of 2012

261 of 2018 and 396 of 2018 and Act XXIV of 2021.

The title of these regulations is the Continuation of

Tenancies (Means Testing Criteria) Regulations.

(1) These regulations establish the criteria of the means

test to be satisfied in terms of article 4A of the Reletting of Urban

Property (Regulation) Ordinance and article 12B of the Housing

(Decontrol) Ordinance by a person with a claim to the continuation of

the tenancy under the said articles.

(2) In order to satisfy the means test criteria established by

these regulations a person shall be required to have both an income

and capital within the limits established by these regulations.

Without prejudice to the provisions of regulation 8, the only

relevant period, hereinafter in these regulations referred to as the

"relevant period", for the calculation of means for the purposes of

these regulations shall be

(a) with regard to the income criterion, the income

between the 1st January and the 31st December during

the year immediately preceding the year in which the

application is filed in terms of article 4A of the Reletting

of Urban Property (Regulation) Ordinance and, or, article

12B of the Housing (Decontrol) Ordinance;

(b) with regard to the capital criterion, the capital as of the 1

January 2021, or five (5) years prior the filing of the

application before the Rent Regulation Board in terms of

article 4A of the Reletting of Urban Property

(Regulation) Ordinance and, or, article 12B of the

Housing (Decontrol) Ordinance, whichever date comes

earlier.

(1) Means test proceedings shall be heard by the Rent

Board behind closed doors and the record of the proceedings shall

only be accessible to the parties subject to an obligation on the

landlord to maintain the information contained in the said record as

secret information. Any person who divulges information in breach

of the provisions of this regulation shall be guilty of contempt of

the Rent Board without prejudice to any other civil or criminal

liability to which the said fact may give rise under any other law.

(2) Subject to any procedural rights exercisable in or in respect

of means test proceedings and to the provisions of regulation 8, a

*See regulation 1(2) of these Regulations, as originally promulgated.

means test may be repeated only in accordance with the provisions of

sub-article (8) of article 4A of the Reletting of Urban Property

(Regulation) Ordinance and of sub-article (8) of article 12B of the

Housing (Decontrol) Ordinance.

(3) In any means test proceedings the person with a claim to the

tenancy shall be bound to

(a) present a statement and authenticated documentation

of his income and capital and to substantiate the same

for the purpose of demonstrating his level of income

and capital in accordance with these regulations during

the relevant period;

(b) provide statements and authenticated documentation in

respect of a period of five (5) years immediately

preceding the relevant period,

so as to enable the Rent Board to determine whether such person

has during the said period immediately preceding the relevant

period divested himself of any capital or income without proper

explanation.

(4) Notwithstanding the other provisions of these regulations,

where the Rent Board is satisfied that the person with a claim to the

tenancy has, during the said period of five (5) years immediately

preceding the relevant period, divested himself of any capital or

income without proper explanation, the Board may decide to take

into account any capital or income of which the said person has

divested himself of without a proper explanation by including it in

the computation of capital and income of the said person.

(1)

(1)

For the purposes of the part that deals with the

income criteria of the means test, "income" means income derived

from any of the sources mentioned in article 5 of the Income Tax Act

and in the following provisions of article 4 of the Income Tax Act

(a)

in paragraph (a) of sub-article (1), in paragraph

(b) of sub-article (1), in paragraph (c) of sub-article (1)

excluding the proviso thereto, in paragraph (d) of sub-article

(1), in paragraph (e) of sub-article (1) and in paragraph (g) of

sub-article (1) excluding the proviso thereto and excluding

capital gains; and

(b)

in sub-article (2), in paragraph (a) of sub-article

(3) excluding the proviso thereto, and in paragraph (b) of sub-

article (3).

(2)

For a person who is younger than thirty-six (36) years old to

meet the income criteria of the means test, the income of the said

person during the relevant period shall not exceed twenty-eight

thousand and five hundred euro (€28,500).

(3)

For a person who is between thirty-six (36) years old to

forty-five (45) years old to meet the income criteria of the means test,

the income of the said person during the relevant period shall not

exceed thirty-eight thousand euro (€38,000).

(4)

For a person who is between forty-six (46) years old to fifty-

five (55) years old to meet the income criteria of the means test, the

income of the said person during the relevant period shall not exceed

forty two thousand euro (€42,000).

(5)

For a person who is between fifty-six (56) years old to sixty-

five (65) years old to meet the income criteria of the means test, the

income of the said person during the relevant period shall not exceed

forty-four thousand and five hundred euro (€44,500).

(6)

For a person who is between sixty-six (66) years old to

seventy-five (75) years old to meet the income criteria of the means

test, the income of the said person during the relevant period shall not

exceed forty-six thousand and five hundred euro (€46,500).

(7)

For a person who is seventy-five (75) years of age or older

to meet the income criteria of the means test, the income of the said

person shall not exceed fifty thousand euro (€50,000).

(8)

The Rent Regulation Board shall have the right to fix higher

levels of income from those contemplated under this regulation when

the person with a claim to continue the tenancy is a person with

disability who is registered with the Commission for the Rights of

Persons with Disability and the type of disability is considered to be of

a severe nature.

(9) For the purposes of determining the severity of disability of such

person and subsequently fix an appropriate level of income, as required

in sub-regulation (8), such assessment shall be carried out in the same

manner as that applicable in the case of claims for an invalidity pension

under paragraphs (e) and (f) of the first proviso to article 106 of the

Social Security Act, with the involvement of the Commission for the

Rights of Persons with Disability.

(1)

(1)

For a person who is younger than thirty-six

(36) years old to meet the capital criteria of the means test, the capital

of the said person shall not exceed sixty thousand euro (€60,000).

(2)

For a person who is between thirty-six (36) years old to

forty-five (45) years old to meet the capital criteria of the means test,

the capital of the said person shall not exceed ninety thousand euro

(€90,000).

(3)

For a person who is between forty-six (46) years old to fifty-

five (55) years old to meet the capital criteria of the means test, the

capital of the said person shall not exceed one-hundred and eighty-five

thousand euro (€185,000).

(4)

For a person who is between fifty-six (56) years old to sixty-

five (65) years old to meet the capital criteria of the means test, the

capital of the said person shall not exceed two hundred and thirteen

thousand euro (€213,000).

(5)

For a person who is between sixty-six (66) years old to

seventy-five (75) years old to meet the capital criteria of the means

test, the capital of the said person shall not exceed two hundred and

forty-five thousand euro (€245,000).

(6)

For a person who is seventy-five (75) years of age or older

to meet the capital criteria of the means test, the capital of such person

shall not exceed six hundred thousand euro (€600,000).

(7)

The Rent Regulation Board shall have the right to fix higher

levels of capital from those contemplated under this regulation when

the person with a claim to continue the tenancy is a person with

disability who is registered with the Commission for the Rights of

Persons with Disability and the type of disability is considered to be of

a severe nature.

(8) For the purposes of determining the severity of disability of such

person and subsequently fix an appropriate level of income, as required

in sub-regulation (7), such assessment shall be carried out in the same

manner as that applicable in the case of claims for an invalidity pension

under paragraphs (e) and (f) of the first proviso to article 106 of the

Social Security Act, with the involvement of the Commission for the

Rights of Persons with Disability.

In calculating the capital criteria of the means test, account

shall be taken of

(a) the value of any immoveable property belonging fully

to the person with a claim to the tenancy only if the

said person holds vacant possession of the said

property;

(b) money deposited in a bank which can be withdrawn at

less than three months’ notice;

(c) cash in hand;

(d) time deposits;

(e) bonds;

(f)

stocks;

(g) securities;

(h) any other financial instrument or financial product

Provided that for the purpose of paragraph (a), where the

Board finds that the possession of dwelling-house would not be vacant

because its use would have been granted to third parties under any title

including lease, the Board shall consider the conditions at which the

tenant may recover the possession of the dwelling-house, and if such

repossession may be made in the short term, that dwelling-house shall

be included anyway in the calculation of the capital criteria of the

means test

Provided further that in the case mentioned in the first

proviso, if as a result of the inclusion of the dwelling-house in the

calculation the tenant does not meet the capital criteria of the means

test, the Board shall have the power to extend the period mentioned

under sub-article (4) of article 4A of the Reletting of Urban Property

(Regulation) Ordinance and article 12B of the Housing (Decontrol)

Ordinance

Provided further that in the scrutiny mentioned in the

second proviso, the Board shall have the power to consider whether

the tenant would have disposed of his rights maliciously, and in

such case include the dwelling-house in the calculation of the

capital criteria of the means test anyway.

Where several persons have a claim to the tenancy in

solidum in accordance with the provisions of the Reletting of Urban

Property (Regulation) Ordinance and the Housing (Decontrol)

Ordinance, it shall be enough if one (1) of the said persons satisfies the

income and capital conditions of the means test provided for in these

regulations

Provided that in the case of the death of the person or persons

who would meet the income and capital criteria of the means test, and

who would have continued the lease in solidum with other persons, the

latter shall not have the right to continue the lease insofar as they do not

also satisfy the income and capital conditions of the means test.

In the case that the tenant is married, the means test shall

include the income and capital of the spouses jointly.