What do the changes to the Malta Individual Investor Programme (IIP) mean for your Real Estate purchase?
The Malta IIP programme is reaching its cap, and the Government has put a deadline on all new applications. Residence applications will be accepted until the 31st of July, and Citizenship applications until the 30th of September.
Therefore, from September onwards, a new programme will be in place once new regulations come into play. But what will the changes look like against the actual IIP?
Practical changes to the Malta Individual Investor Programme (IIP)
Up to know, applicants interested in being granted Maltese Citizenship would need to make three critical Investments
- A Property Investment: A property purchase in Malta with a minimum value of €350,000 or to lease a property for a minimum annual rent of €16,000;
- Government Bonds: Invest a minimum of €150,000, in investment vehicles designated by the Government of Malta;
- Government Contribution: With an amount that depends on the application structure, starting onEUR650,000 for the principal applicant
However, this will change with the new programme. So far, the announced changes to the programme will be resumed as follows:
The most significant change is that there will be 2 residence options leading to Citizenship:
- Applicants will be able to apply for Citizenship after three-year residency in Malta and will need to make a contribution of EUR600,000 for the principal applicant and EUR50,000 for every dependant
- Should they wish to apply for Citizenship after 12 months, applicants will need to make a contribution of EUR750,000 for the principal applicant and EUR50,000 for every dependant
The Real Estate investment with a minimum value of EUR700,000 (previously EUR350,000) or a rental investment of EUR18,000 annually (previously EUR16,000)
While this doubles the purchase requirement, the change in the minimum threshold confirms the steady increase of the Maltese Real estate market, which has seen double-digit growth over the past three to five years.
Changes in the qualifying investment and a strengthening of the Due Diligence process are in line with what we predicted in Amendments to Malta IIP – Quo Vadis?
How will this affect your situation?
If you are interested in applying for Citizenship, please get in touch soon. If the citizenship application is submitted after the end of September, your application will fall within the new qualifying criteria.
You can submit your residence application under the current Malta Individual Investor Programme (IIP) until the 31st of July, and your Citizenship application until the 30th of September.
If you have residence but you do not submit your
application before the 30th of September, your
application will fall within the new regulations.
Andres Guitierrez is an investment immigration consultant, with a
master's in international business law, working with CSB Group
in collaboration with Malta Sotheby's International Realty. He
is contactable via +356 9924 1428 or on email firstname.lastname@example.org.
Alternatively, you can get in touch
Originally published July 16, 2020.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.