Maltese developers asked for a higher minimum amount of investment for the citizenship
Published at: 10/09/2018 04:56 pm
The MDA (Malta Developers Associations suggested to increase the amount of real estate investment during a public consultation launched by the government about the citizenship by investment programme (IIP - Individual Investor Programme). According to their statement, they suggested to increase the minimum required amount of real estate investment to half a million euros and also to increase the annual rental option to 30,000 euros.
The government initiated the public consultation in February 2018 to understand the opinion of the professional organisations on the Maltese citizenship and residency programmes, the processing times, residency status and conditions, among others.
The suggestions of the MDA:
1. We agree that the number of accepted applications under the Programme be left at the wide discretion of Government. The IIP program is a success, and we believe it is positively affecting our economy.
2. The minimum amount to purchase property should increase to Euro 500,000. We believe that the current Euro 350,000 is low and is creating a negative impact on the lower brackets of the population to purchase the property.
3. The minimum amount to lease a property should increase to Euro 30,000 per annum. We believe that the current Euro 16,500 per annum is low and is creating a negative impact on the lower brackets of the population to lease residential property.
4. Applicants should only be allowed to sign a lease directly with the landlord, and the property should not have have been sub-leased from third parties. Sub-Leased should only be allowed if the lease is being done from a subsidiary of a holding company.
Also, we suggest that a review of the process is done in order to make the process more efficient.
According to the actual regulations of the Maltese citizenship by residency programme, the applicants must commit to retaining an immovable residence in Malta for a minimum period of five years. They can buy a property in Malta for at least €350,000 and maintaining ownership for five+ years or by lease a real estate for five years or more with a minimum annual rent of €16,000. Applicants must also provide evidence of owning or leasing property on the islands within four months of receiving a citizenship Malta Letter of Approval in Principle.