The real estate section of the Chamber of Commerce, Enterprise and Industry has greeted the newly-announced tax scheme for high net worth individuals with apprehension, describing its rules as “overly onerous” and its cost “exorbitant”.

The section voiced concern that the scheme’s high thresholds could deter foreigners from choosing to reside in Malta.

Last week, the government announced a new scheme to replace the previous Permanent Residency Scheme. Under the new scheme, EU nationals wishing to take up residence in Malta must purchase property worth at least €400,000 and pay a minimum of €20,000 a year in tax.

The Chamber’s business section also expressed unease, saying the announced thresholds could have negative repercussions on the property market in general. If that were the case, it said, the ripple effect would be felt by all local business.

The statement also paid tribute to the previous scheme. Although it had not been designed to sell property in Malta, the real estate section said, it had helped incentivise overseas nationals to purchase property in Malta, generating millions of euro for the private and public sectors.