L.S. 573.16 Regolamenti dwar Għoti ta’ Konċessjoni Enfitewtika Temporanja liċ-Ċenswalist, Inkwilin jew Operatur ta’ Proprjetà Kummerċjali tal-Gvern

(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. Citation and scope.

(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.

1. requires: In these regulations, unless the context otherwise Interpretation. Amended by: L.N. 58 of
2. "Act" means the Government Lands Act; Cap.
3. "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 Cap.

1. 2 [ S.L. 573.16 GRANT OF A TEMPORARY EMPHYTEUTICAL 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; Cap.
2. Eligibility to submit an application. Amended by: L.N. 58 of
3. "scheduled properties" means the buildings scheduled as Grade 1 and Grade 2 in terms of article 57 of the Development Planning Act. 3.

(1)Applications shall be submitted to the authority by an applicant having any of the following: (

1. a)a valid emphyteutical concession recognised by the authority; (
2. b)a valid commercial lease granted by the authority; (
3. 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. Applicability. Amended by: L.N. 58 of 2025. 4. These regulations shall not be applicable to the following properties: (

1. 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; GRANT OF A TEMPORARY EMPHYTEUTICAL CONCESSION TO THE EMPHYTEUTA, TENANT OR OPERATOR OF GOVERNMENT-OWNED COMMERCIAL PROPERTY [ S.L. 573.16 3 (
2. 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; (
3. 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;; (
4. d)properties which are not fully owned by the Government and which were not registered accordingly; (
5. e)properties originally disposed of by a Special Resolution of the House of Representatives. 5.

(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. Merging of property. Amended by: L.N. 58 of 2025.

(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. 6. 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 Governmentowned 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: Illegal occupation. Amended by: L.N. 58 of

1. 4 [ S.L. 573.16 GRANT OF A TEMPORARY EMPHYTEUTICAL 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. Emphyteutical concession terms.
2. 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 (1500m2), such transfer of property shall be subject to the provisions of article 31(c) of the Act. Computation and amount of ground rent. 8.

(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. Increase in ground rent. 9. 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. Expert fees. 10. 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. Payment of ground-rent and premium. 11.

(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. GRANT OF A TEMPORARY EMPHYTEUTICAL CONCESSION TO THE EMPHYTEUTA, TENANT OR OPERATOR OF GOVERNMENT-OWNED COMMERCIAL PROPERTY [ S.L. 573.16 12. All arrears due in connection with properties subject to concession shall be paid prior to publication of the deed of the emphyteutical concession. Arrears. 13.

(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. Future transfers.

(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. Laudemium.

(4)(

1. 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. Lease to third parties. (
2. 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. 14.

(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. General conditions. 5 6 [ S.L. 573.16 GRANT OF A TEMPORARY EMPHYTEUTICAL 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. Application process. 15.

(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 In case of death of applicant. 16. 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 GRANT OF A TEMPORARY EMPHYTEUTICAL CONCESSION TO THE EMPHYTEUTA, TENANT OR OPERATOR OF GOVERNMENT-OWNED COMMERCIAL PROPERTY [ S.L. 573.16 7 been transferred to the person who is requesting such change. 17.

(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. Declaration.

(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: (

1. 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 (
2. 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).

1. 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 prorata for the additional occupancy period shall be paid in full upon signing of the new emphyteutical deed. Lapse of emphyteutical grants or leases during the application process.
2. 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. Expenses and fees. 20.

(1)The authority shall have the right to reject in its sole discretion any application submitted to it in accordance with these regulations. Saving.

(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 8 [ S.L. 573.16 GRANT OF A TEMPORARY EMPHYTEUTICAL 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. Appeal.   Cap. 563. 21. 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. FIRST SCHEDULE S.L. 552.15. Classes of properties established in the Development Planning (Use Classes) Order recognised as commercial properties for the purposes of these regulations: (

1. a)Class 2B – Non Residential Institutions (
2. b)Class 2C – Education (
3. c)Class 3A – Guest Houses, Palazzini, Boutique Tourism Accommodation and Hostels (
4. d)(
5. e)Offices (
6. f)Class 3B - Hotels Class 4A – Financial, Professional & Other Class 4B – Retail (
7. g)Class 4C – Food and Drink Establishments where no cooking is allowed (
8. h)Class 4D - Food and Drink Establishments where cooking is allowed (
9. i)Class 5A –Light Industry (
10. j)Class 6A – Storage and Distribution GRANT OF A TEMPORARY EMPHYTEUTICAL CONCESSION TO THE EMPHYTEUTA, TENANT OR OPERATOR OF GOVERNMENT-OWNED COMMERCIAL PROPERTY [ S.L. 573.16 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: (
11. a)amusement arcade or centre; (
12. b)dance or wedding hall; (
13. c)discoteque or similar places of assembly; (
14. d)taxi business, hire of motor vehicles, public service garage, sale or display of motor vehicle; (
15. e)diving schools and, or acqua lung fillers; (
16. f)food takeaways, including pastizzeria; (
17. 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; (
18. h)bakery; (
19. i)conference or public assembly centre; (
20. j)supermarkets; (
21. k)bingo halls, casino, gaming shops, betting shops (excluding lotto offices); (
22. l)retail outlets selling fire arms. SECOND SCHEDULE FEES 1. All applications shall be subject to an initial and nonrefundable 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 (1500m2) 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.  S.L. 552.15. 9 10 [ S.L. 573.16 GRANT OF A TEMPORARY EMPHYTEUTICAL CONCESSION TO THE EMPHYTEUTA, TENANT OR OPERATOR OF GOVERNMENT-OWNED COMMERCIAL PROPERTY