What will my house be worth should Malta join the European Union?
Will my children find it difficult to find a decent home when they get married?
Will my neighbourhood be ruined by unintelligible, non-Christian barbarians from the east?
Will we be drowned in a sea of Nordic geriatrics seeking a warm climate to spend the last days of their lives? Will Malta be transformed into the EU's old people's home? Amusing questions one might think, possibly the fruit of the insular cast of mind, prevalent among the people here.
Actually, the sensitivity of the whole issue, of what would actually happen to Maltese real estate in the event of EU membership, is not difficult to understand.
The threat, whether actual or imagined, posed by a vicious and uncontrolled rise in the price of property, to the future of one's children, might even be on a par with that other historical threat, in the 1980s, caused by the public-private schools issue. At that time, we had thousands of parents defending their "children's future".
But what is the real situation? What are we to expect? Is it all so dark and black? Under present EU law, all EU citizens have the privilege to freely buy property in any EU country. This is an intrinsic right of EU citizens which would also be automatically passed on to the Maltese on accession.
On the other hand, present Maltese law only allows foreigners to buy property in Malta, subject to prior authorisation and under certain conditions. For instance, it limits them to just one property.
In the negotiations, Malta requested to retain these restrictions on a permanent basis, even after accession. There were two basic factors aiding Malta's case. The first is the geographical size of the country, the second the density of the population, in this respect placing it at the forefront of the EU.
A transition period could not have been sufficient for Malta. These problems are not going to disappear, except in a far-away science-fiction future. The Maltese negotiators therefore argued for a permanent arrangement.
Funnily enough, at present, it is already possible for foreigners to buy property in Malta, typically for use as a holiday home and therefore to be considered as a secondary residence. To do so they require a permit, granted only for one property and subject to a number of qualifications, including the value of the property. No authorisation is granted for the purchase of more than one property.
As a result of the negotiations, this will actually remain in place, permanently. Notwithstanding the fact that EU law allows EU citizens to buy property in an EU country without any restrictions, in Malta's case there will be restrictions. This means that EU citizens seeking to buy a second house in Malta will still be required to apply for an authorisation and satisfy conditions, as is the case now. They will not be entitled to buy more than one property, unless they have already lived in Malta for at least five years.
The agreement reached by negotiators with the EU distinguishes between the purchase of a first property to use as a holiday residence and buying a second or further property in Malta.
An EU citizen wishing to buy a first property in Malta, to enjoy as a holiday home while still living in his own country for the rest of the year, can already do so now under Maltese law. All he has to do is apply for a permit, which is normally granted subject to conditions, such as the value of the property which must be at least Lm30,000 in the case of a flat and Lm50,000 for a house. This will remain unchanged after accession, and permits will still only be granted subject to these conditions.
Under current Maltese law, it is not possible for an EU citizen who already owns a summer residence in Malta to buy another property here. After membership, he would still not be allowed to buy a second property unless he has first lived in Malta for five years.
The same goes for an EU citizen who already owns a house in Malta. Should he decide to settle in Malta permanently, he would need to live here for five years before being allowed to buy a second property.
After accession, Maltese citizens will have the unrestricted right to buy property in any EU country. This means that, whereas under the terms of the negotiations, Malta will retain restrictions on the right of foreigners to buy property in Malta, no such reciprocal restrictions will be imposed by the EU on Maltese citizens who want to buy property abroad.
These new rights will also be enjoyed by Maltese migrants living abroad, as well as by their children so long as they hold Maltese nationality.