GRANT OF A TEMPORARY EMPHYTEUTICAL CONCESSION TO THE EMPHYTEUTA, TENANT OR OPERATOR OF GOVERNMENT-OWNED

CONCESSION TO THE EMPHYTEUTA, TENANT OR

OPERATOR OF GOVERNMENT-OWNED COMMERCIAL

PROPERTY

SUBSIDIARY LEGISLATION 573.16

GRANT OF A TEMPORARY EMPHYTEUTICAL

CONCESSION TO THE EMPHYTEUTA, TENANT OR

OPERATOR OF GOVERNMENT-OWNED

COMMERCIAL PROPERTY REGULATIONS

4th June, 2024

LEGAL NOTICE 131 of 2024, as amended by Legal Notice 58 of 2025.

(1)

The title of these regulations is the Grant of a

Temporary Emphyteutical Concession to the Emphyteuta, Tenant or

Operator of Government-Owned Commercial Property Regulations.

(2)

The scope of these regulations is to establish the criteria

on the basis of which a temporary emphyteutical concession may be

granted to eligible applicants.

Classes of properties established in the Development Planning

(Use Classes) Order 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

CONCESSION TO THE EMPHYTEUTA, TENANT OR

OPERATOR OF GOVERNMENT-OWNED COMMERCIAL

PROPERTY

The uses listed hereunder, being in accordance with regulation 4

of the Development Planning (Use Classes) Order shall also be

considered as commercial properties 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.

In these regulations, unless the context otherwise

requires

"Act" means the Government Lands Act;

"applicant" means any natural or legal person applying to

the authority to be granted the title of temporary empythuesis in

accordance with the terms of these regulations;

"authority" means the Lands Authority established in

accordance with article 5 of the Lands Authority Act;

"Board of Governors" shall have the same meaning as

assigned to it in the Act;

"casa bottega" means a single tenement which is being

used for residential and for commercial purposes concurrently;

"commercial property" means the property that, as of the

application submission date, is recognised under one (1) of the

categories listed in the First Schedule;

"Minister" means the Minister or Parliamentary

Secretary under whose portfolio the authority is included;

"operator" means a natural or legal person with an

ongoing operations agreement with a tenant authorising him to

operate a commercial property;

"recognised use" means the use for which land has been

CONCESSION TO THE EMPHYTEUTA, TENANT OR

OPERATOR OF GOVERNMENT-OWNED COMMERCIAL

PROPERTY

granted including that use of land recognised by the authority or

which the authority considers recognising;

"scheduled properties" means the buildings scheduled as

Grade 1 and Grade 2 in terms of article 57 of the Development

Planning Act.

FEES

1. All applications shall be subject to an initial and non-

refundable submission fee of one thousand five hundred euro (€1500).

2. Applications for properties with a footprint exceeding an

area of one thousand five hundred square metres (1500m 2 ) shall be

subject to an additional fee of one euro (€1) per square metre, subject

to a minimum additional fee of one thousand five hundred euro

(€1500) and to a maximum of five thousand euro (€5000), and such

additional fee shall be requested and levied upon written confirmation

of the approval of the application.

3. Applications that are withdrawn by the applicant at any

stage of the process shall forfeit all fees paid up to date of withdrawal.

CONCESSION TO THE EMPHYTEUTA, TENANT OR

OPERATOR OF GOVERNMENT-OWNED COMMERCIAL

PROPERTY

(1)

Applications shall be submitted to the authority by

an applicant having any of the following

(a)

a valid emphyteutical concession recognised by

the authority;

(b)

a valid commercial lease granted by the authority;

(c)

an ongoing operations agreement with a tenant

authorizing him to operate a commercial property and the

declaration specified in sub-regulation (2); or

(d)

a valid title of a casa bottega recognised by the

authority prior to the date of entry into force of these

regulations

Provided that where the recognised use is not

specified in the concession or lease agreement, the authority

shall have the right to recognise the use as commercial in

accordance with these regulations

Provided further that the Authority may also

consider a request for a new commercial use under one of the

categories listed in the First Schedule, provided that the

proposed use is covered by a development permit or other

licence required as the case may be.

(2)

Where the property is subject to an ongoing operations

agreement between the tenant and the operator, the application shall

include a declaration signed by both parties sworn before a

Commissioner for Oaths, clearly indicating the operator as the

applicant.

These regulations shall not be applicable to the

following properties

(a)

kiosks, with the exception of those properties

consisting of a permanently constructed structure having a

Class 4C and 4D use as listed in the First Schedule, covered by

a development permit or licence as the case may be and which

were already operational before the coming into force of the

Act;

CONCESSION TO THE EMPHYTEUTA, TENANT OR

OPERATOR OF GOVERNMENT-OWNED COMMERCIAL

PROPERTY

(b)

boat yards, with the exception of those properties

with a recognised use in accordance with one of the uses listed

in the First Schedule, covered by a development permit or

licence as the case may be, and which were already operational

before the coming into force of the Act;

(c)

scheduled properties, except those properties with

a recognised use in accordance with one of the uses listed in the

First Schedule, covered by a development permit or licence as

the case may be

Provided that the grant of the concession under

these regulations for such scheduled properties shall be subject

to approval by the Board of Governors of the Authority after it

has been established that the grant of the concession would not

be of any detriment to the scheduling level of the property;;

(d)

properties which are not fully owned by the

Government and which were not registered accordingly;

(e)

properties originally disposed of by a Special

Resolution of the House of Representatives.

(1)

Should an application submitted in terms of these

regulations involve more than one (1) property that originally

consisted of separate tenements disposed of to different emphyteutae

and, or tenants, or involves additional Government property annexed

to the tenement orginally disposed, and which over time became

merged into one (1) tenement without the authority’s prior consent,

those tenements shall be combined and considered as one (1) for all

intents and purposes of these regulations.

(2)

In case of any application for a property that originally

consisted of separate tenements disposed of to different emphyteutae

and, or different tenants, but which over time were amalgamated into

one tenement (1) in accordance with sub-regulation (1), the applicant

shall provide a declaration sworn before a commissioner for oaths,

signed by all the involved emphyteutae, tenants and, or operators as

the case may be, and attesting to their consensual agreement by clearly

declaring which one of these parties shall be considered by the

authority as the applicant.

Every application whereby it is ascertained by the

authority that the conditions prescribed in regulation 5(1) exist and

that the applicant has no valid legal title on the adjacent Government-

owned property, the applicant shall, without prejudice to any other

provision of the Act, be liable to an administrative penalty of five

hundred euro (€500) for every extra square meter that has been

occupied illegally

CONCESSION TO THE EMPHYTEUTA, TENANT OR

OPERATOR OF GOVERNMENT-OWNED COMMERCIAL

PROPERTY

Provided that every such application where it is

established that the property or part of the property is not duly covered

by a development permit or any third party rights are being breached,

shall be excluded from the emphytheutical concession

Provided further that the administrative penalty shall not

be applicable to merging of properties covered by a valid title.

The new emphyteutical concession term in accordance

with these regulations shall be for a period of fifty (50) years to be

reckoned from the date of publication of the emphyteutical deed

Provided that when the property subject to the

emphyteutical concession has a footprint exceeding an area of one

thousand five hundred square metres (1500m 2 ), such transfer of

property shall be subject to the provisions of article 31(c) of the Act.

(1)

Every valuation in relation to these regulations

shall be in conformity with the provisions of article 79 of the Act.

(2)

In all cases, the applicable ground rent shall be of a value

equivalent to two per cent (2%) of the freehold value as determined by

the valuation in accordance with sub-regulation (1).

(3)

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. Any commercial benefits resulting

from external areas, granted on encroachment terms by the

government, shall not be included in the valuation.

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.

The fees of the periti and experts in connection with the

valuations required in regulation 8, shall be borne by the applicant and

shall be paid on the date of the signing of the contract.

(1)

If the ground rent as computed in regulation 8

results as being lower than the ground rent or rent of the former

emphyteutical concession or lease, the higher ground rent or rent rate

shall be retained in the new emphyteutical concession deed.

(2)

The ground rent shall become payable one (1) year in

advance from the date of the signing of the deed.

(3)

The new emphyteuta shall pay a premium equivalent to

one (1) year ground-rent on the date of signing of the deed.

CONCESSION TO THE EMPHYTEUTA, TENANT OR

OPERATOR OF GOVERNMENT-OWNED COMMERCIAL

PROPERTY

All arrears due in connection with properties subject to

concession shall be paid prior to publication of the deed of the

emphyteutical concession.

(1) Any request for transfer in favour of third parties of an

emphyteutical concession granted under these regulations approved by

the authority, shall be transferred in whole.

(2)

Transfers by title of sub-emphyteusis shall not be

approved. Any such transfer shall be deemed null and void and shall

be construed as sufficient legal basis for the termination of the

emphyteutical concession.

(3)

Upon transferring the emphyteutical concession to third

parties, a recognition fee (laudemium) equivalent to one (1) year’s

ground rent shall be due to the authority. The transferor shall provide

the authority with a copy of the deed within sixty (60) days from the

effective date of transfer, failing which an administrative penalty of

one hundred euro (€100) per day, in addition to the laudemium, shall

be imposed on the transferor, as long as the failure persists.

(4)

(a)

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 in accordance

with regulation 8.

(b)

If the emphyteuta leases the property in accordance with

this sub-regulation, a copy of the relative lease agreement shall be sent

to the authority within sixty (60) days, failing which an administrative

penalty of one hundred euro (€100) per day, in addition to the

administrative fee in accordance with paragraph (a), shall be imposed

on the transferor.

(1)

The property shall be granted tale quale with the

exclusion of all warranties and, in all cases, it shall be transferred as

subject to any latent defects, in its present state and condition.

(2)

The submission of any application in accordance with

these regulations shall automatically render null any other pending

application and, or request for repairs.

(3)

The authority reserves the right to conduct random site

inspections as it deems necessary.

(4)

Any existing encroachment concessions shall remain

unaffected subject to the authority’s discretion and shall be precluded

from forming part of the new emphyteutical concession.

CONCESSION TO THE EMPHYTEUTA, TENANT OR

OPERATOR OF GOVERNMENT-OWNED COMMERCIAL

PROPERTY

(5)

The new emphyteutical concession shall be subject to,

and shall not prejudice any existing servitudes.

(6)

Where the emphyteuta is a company, at least one (1) of

the directors or any person who is not a juridical entity, subject to

approval by Government, shall constitute himself as a guarantor in

favour of the Government, in relation to all the obligations being

undertaken by the emphyteuta in the deed. These obligations inter alia

include the payment of ground rent, damages, expenses, payments and

obligations that may be suffered by the Government directly or

indirectly from this grant.

(7)

Any emphyteutical concession granted in accordance

with these regulations, shall not be subject to redemption and

conversion to perpetual emphyteusis.

(8)

Following the grant of the emphyteutical concession in

accordance with these regulations, the current title shall cease ipso

jure.

(1)

Any application submitted to the authority in

accordance with these regulations shall be considered valid only after

all the necessary requirements listed in the application form have been

satisfied.

(2)

The authority shall have the right to request any other

information or documentation which it deems necessary to process the

application.

(3)

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.

(4)

Upon submission of any application in accordance with

these regulations, there shall be payable an administrative application

fee in accordance with the Second Schedule

Provided that if an applicant withdraws the 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

Following the submission of the application in

accordance with these regulations, 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

CONCESSION TO THE EMPHYTEUTA, TENANT OR

OPERATOR OF GOVERNMENT-OWNED COMMERCIAL

PROPERTY

been transferred to the person who is requesting such change.

(1)

In addition to the application submitted to the

authority in accordance with these regulations, the applicant shall

provide a declaration signed by him confirming that all the contents of

the application submitted by him are correct, and that no other relevant

facts, information or documentation have been omitted, which if

known by the authority would have led to the rejection of the

application.

(2)

No applicant may justify his failure to omit other facts,

information or documentation relevant to the application on the

grounds that the authority already had knowledge of those facts,

information or documentation

Provided that if it results that the applicant has made a

false declaration for the purposes of an application made in accordance

with these regulations, the authority shall

(a)

in cases where the authority became aware of such

false declaration prior to the finalisation of the application

process and the publication of the deed, the application shall be

revoked and all fees and expenses shall be paid by the

applicant; or

(b)

in cases where the authority became aware of such

false declaration following the finalisation of the application

process and the publication of the deed, the authority shall have

the right to act in accordance with regulation 20(3).

In the case of emphyteutical concessions or leases which

lapse during the application process, an additional payment equivalent

to the ground rent or rent previously paid and duly apportioned pro-

rata for the additional occupancy period shall be paid in full upon

signing of the new emphyteutical deed.

All expenses, including those relating to the valuation

required in accordance with these regulations, and those relating to the

granting of the emphyteutical concession, shall be paid by the

applicant by not later than the date of signing of the emphyteutical

concession.

(1)

The authority shall have the right to reject in its

sole discretion any application submitted to it in accordance with these

regulations.

(2)

The decision by which the authority denies an

application submitted to it pursuant to these regulations shall be in

writing, even if by electronic means, and shall include the reason

CONCESSION TO THE EMPHYTEUTA, TENANT OR

OPERATOR OF GOVERNMENT-OWNED COMMERCIAL

PROPERTY

which led to the refusal of the application.

(3)

The authority shall have the right to bring any action

before the Civil Court First Hall, requesting the rescission of the

emphyteutical concession, issued on the basis of a false declaration,

incorrect information, or resulting from an error, where in the absence

of such false declaration, incorrect information or error, the authority

would have not granted the emphyteutical concession.

(4)

The authority shall not be liable to any form of damage

or compensation in the exercise of its functions in accordance with

these regulations.

An applicant shall have a right of appeal from a decision

of the authority taken pursuant to these regulations under the terms of

article 57 of the Lands Authority Act.