Lawyers urge consultation on ‘excessive’ permanent residents’ scheme rules

The Chamber of Advocates has expressed concern at the lack of government consultation on the suspension of the residence scheme regulations, previously brought to public attention by the Chamber of Commerce.

The rules facilitate the entry and indefinite stay of foreigners to Malta who must first fulfil eligibility rules on heir good standing, minimum income, and wealth requirements – primarily attracting affluent workers. But they were abruptly stopped by the finance ministry over suspicion of abuse.

The Chamber’s secretary-general Stefan Camilleri said the scheme had been abused by a “minority of advisors and real estate agents locally and board who highlighted too commercially the indirect legal consequences of taking up residence in Malta to further their business interests.”

Camilleri hinted that a significant incident where an EU national had qualified for overseas medical treatment for serious illness at the expense of the national health system, may have contributed to suspicion of abuse of the scheme.

He said many lawyers represent clients who had commenced their relocation to Malta only to find their residence status was now in limbo, after having paid for accommodation, transportation, school fees for children and other deposits on homes.

“While the Chamber sympathises with this reaction, amendments in 20006 proved to have gone overboard in assuring that documents presented in support of an application for residence were genuine to avoid real abuse,” Camilleri said.

EU nationals in Malta under the scheme are entitled to free healthcare by virtue of EU citizenship, but non-EU nationals can only access such medical care upon qualifying for long-term residence status.

“The Chamber agrees with the need to revisit the rules but it fears the changes being considered by government will go overboard in redressing these concerns, rendering the scheme unattractive at a time when Malta’s competitiveness is under attack by jurisdictions who are more sensitive to wealthy foreigners seeking residence therein,” Camilleri said.

Camilleri said Cyprus, Monaco, and Switzerland have been “fast to respond” with favourable conditions to attract the rich and affluent.

"The Chamber urges the government to open up discussions and expedite the issue of new regulations to bring to an end this prolonged period of uncertainty for applicants and approved families caught up in the midst of this suspension," Camilleri said.