The Auberge de France has been transferred to the Vittoriosa council for an annual rent of €2,000 a year for three years.
Lands Minister Jason Azzopardi said the aim of the transfer was to enable the council to operate from a more central and bigger place.
Mayor John Boxall said the council had spent around €90,000 to carry out the necessary restructuring inthe auberge, which was occupied by the knights in the 15th century.
Between 1966 and 1978, it was used as a carpenter's workshop. It was passed on to Heritage Malta in 2010.
Councils' Minister Carmelo Mifsud Bonnici was also present for the ceremony.