Is a settlement agreement reached outside court legally enforceable in Malta?

Yes, a properly concluded settlement agreement is generally a binding contract under general principles of Maltese contract law found in the Civil Code, Chapter 16 of the Laws of Malta, provided it meets the basic requirements of a valid contract, such as genuine consent from both parties, a lawful object, and sufficiently clear terms, and it does not need to have been reached through formal court or arbitration proceedings to be enforceable. If the other party fails to comply with the settlement, your recourse is generally to pursue a breach of contract claim based on the settlement agreement itself, treating it as you would any other contract that has been breached, rather than needing to reopen the underlying original dispute from scratch, provided the settlement was clearly intended to finally and fully resolve that original dispute. Whether enforcement would need to go through the ordinary courts or could potentially be handled more efficiently depends on exactly how the settlement was documented and whether it includes any specific enforcement mechanisms, so it would be worth having the lawyer who negotiated the settlement review the specific wording and advise on the most efficient enforcement route given the other party's non-compliance.