Originally, the Maltese government planned to accept not more than 1,800 new citizens who submitted their applications through the Individual Investor Program of the Republic (IIP). However, during his speech at the 11th Global Residence and Citizenship Conference in Hong Kong, the Prime Minister of Malta, Hon. Dr. Joseph Muscat, announced that the program might undergo some changes – namely, the quota on approved applications is to be extended.
According to Muscat, the decision to introduce quota changes into the IIP had been made long before the limit was reached. As of October 2017, Malta has approved over 1,500 applications.
The Prime Minister also stated that the program will become “more exclusive” than the current one. He, however, didn’t go into specifics this time.
While we are waiting for an official announcement, let’s revise terms and conditions of the current program:
- Who can apply for the IPP and how much will it cost?
- Malta’s citizenship program is quite popular among investors, but why?
- Should I invest in Maltese real estate today?
What conditions should I meet to qualify for Maltese IIP?
The main applicant must be at least 18 years of age, reside in Malta at least 12 months before applying for a citizenship, and also comply with other requirements of the program, such as:
- purchase / rent real estate for at least €350k / €16k per year, respectively;
- donate at least €650k to the National Development Fund;
- invest at least €150k in state bonds (maturity – 5 years).
There are at least 7 benefits of Maltese passport:
- visa-free access to 160+ countries;
- “safe harbour” in case of unexpected situations at homeland;
- safety and stability;
- ability to reside at a developed country with a stable political system;
- access to advanced health care;
- better education for your children;
- ability to start your own business with lower and more lax tax rates.
Price for real estate in Malta is steadily growing
Since 2014, the Maltese real estate market has been demonstrating upwards growth. According to representatives of the Malta Central Bank, the citizenship by investment program gave a noticeable boost to the real estate sector. Malta also exempted first-time buyers from payment of a stamp duty for the purchase of immovable property.
Investing in Maltese real estate is beneficial on so many levels. The island is famous for its enabling business environment for foreign investors. What triggers investors to set their sights to Malta?
- There are no land taxes, no property taxes; the only property-related tax that does exist is a one-time stamp duty fee (5% of purchase price of a property). Malta is quite unique in this regard, as not a lot of European countries have such tax systems.
- Profitability of investments in real estate is 5-8% per year. The cost of renting residence grew by 12-14% as of the end of 2017. In fact, there is not enough objects available for rent in Malta, as demand exceeds supply.
- According to Eurostat data, prices for Maltese real estate grew by 5.4% in the first quarter of 2017. And it looks like the price growth would continue at the same rate in the future.
Alternative programs in Europe
Cyprus’ CBI program is, at the moment, the closest alternative to Malta’s. Since 2014, over 2,000 high net worth individuals have become citizens of Cyprus. To qualify for the Cypriot CBI program, one should invest at least €2 million in real estate, business and government bonds. The investor can also combine several options, and invest €500k to government bonds and €1.5 million to real estate, for example.
Interested in more detailed information about Malta citizenship by investment program? Contact us!
- We offer free consultations, understanding how important it is for the client to make the only correct decision.
- We work only in the field of investment immigration, integrating gained experience into the investor’s goal.
- We work only with official programs of the European Union and Caribbean countries.
- Before signing the contract, we inform our clients about all additional fees and expenses.
- We conduct a screening to assess the investor’s chances of obtaining the desired citizenship.
- We oversee the process at each stage and work exclusively towards the result.
- We are in touch 24/7.