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Developers’ lobby welcomes property element in citizenship scheme
MDA welcomes decision to link the IIP with purchase or rental of property in Malta
The Malta Developers Association has welcomed government's decision to oblige participants in the Individual Investor Programme (IIP) to purchase a property in Malta of a value of at least €350,000 or rent a property for €16,000 a year.
"Since its formation, the MDA has been lobbying with government to make the sale or letting of property to foreigners an objective and the inclusion of this obligation in the revised IIP is in line with MDA's strategy for the improvement of the Maltese property market," the MDA said.
A revamped citizenship scheme will require wealthy foreigners to invest at least €1.15 million in order to obtain a Maltese passport. Applicants must also invest in property and government bonds and shares before being granted citizenship.
The programme will be capped at 1,800 successful applications and once this number is reached, the programme will be cancelled.
The scheme which was put on hold despite being approved by parliament will now require applicants to pay €650,000 which will go to the National Economic and Social Development and the consolidated fund, purchase a property of at least €350,000 and invest at least €150,000 in government issued bonds or shares.
Applicants will also have an option to rent a property for €16,000 a year. In both cases applicants will be contractually bound to keep the property for at least five years, otherwise the citizenship would be revoked.
70% of the €650,000 payment will go into the national fund styled upon the Norwegian sovereign wealth fund. The fund will be used for educational, research, social projects and migration. The other 30% will go to the consolidated fund.
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I am not one who is too keen on the spate of permits which were given for the building of quite a number of luxury buildings many of which are unsold other than contractors bartering them with each other. However now that we have built them there is no doubt that the IIP scheme will generate real sales of such property and bring real additional money into the country which will help our balance of payments. Also these luxury residences will need maltese professionals and workers to decorate and maintain them plus generate increased sales for estate agents and developers all of which will filter and leverage our businesses and employment.Once the people start seeing these economic returns they will soon forget the politically biased and mostly unwarranted objections which have soured this scheme.
