Had I been an EU citizen wishing to take up residence in Malta, I’d be terribly miffed. If I go on the Inland Revenue Department’s website, it tells me that as an EU citizen, Malta would give me the right to buy property here only if I first reside on the island for five years. It says that although EU law allows its citizens to purchase property in any EU country without restrictions, Malta had reached a special agreement on property purchases during its pre-accession negotiations.
“This was done,” the IRD says, “in order to eliminate the possibility of foreigners freely buying as much property in Malta as they want.” There is limited land available for construction, the department explains, which can cover the basic needs of the present residents. Furthermore, Malta wanted to prevent an increase in property prices because of EU membership.
The Nationalist Party in government had negotiated this concession, possibly to offset Labour’s scare-mongering that we were in for a Sicilian invasion. And now that Labour is in government, it is scuttling the lot, leaving EU citizens high and dry. Labour will effectively be fast-tracking property purchases for non-EU citizens through a takeaway passport scheme in return for ready cash.
EU citizens must still wait five years, not for a passport they don’t need, but just to buy a property.
Our Prime Minister went to London to deliver an incredibly embarrassing speech to launch the passport takeaway scheme, calling it an “Individual Investor Program”.
No it is not a computer “program”, our government is using American English to attract investment from Kazakhstan. (Who’s writing these Form II level English speeches for our Prime Minister anyway, the Law Commissioner?)
According to our Prime Minister, the IIP aims to attract people with “knowledge, expertise and networks”. Funny how he barely made any mention of investment.
“Talent is our gold,” he declared pompously in London, “people are our treasure. This programme is aimed squarely at importing more of what is most truly precious to us.” One should suppose such talent is not available in Europe, otherwise we wouldn’t be letting Europeans wait five years.
If I was a pensioned EU citizen in Malta, I would be equally miffed. Also on the IRD website, it tells me that to qualify for the 2012 Malta Retirement Programme, I would need to own a property in Malta of €275,000 and occupy it as my principal place of residence.
If I rent, I need to pay €9,600 annually. Cheaper rates apply to Gozo. In return I would be given a special tax status.
Under Labour’s passport takeaway programme, there are no such conditions attached. It’s cash over the counter and you can live wherever and buy whatever you like. Compare the 2012 retirement programme to Henley and Partners’ promotion of the IIP programme, as they seem to be running the show already without Parliament’s approval: “An alternative citizenship and passport is a powerful tool for international tax planning, it gives you extra privacy in banking and investment.”
Labour has long lost its soul to money, and this should have come as no surprise
So we’re turning Malta into a tax haven now. One need not look too far back to see how the EU came down heavily on another tax haven, Cyprus, and dictated humiliating terms when the latter found itself in a weak position. But our government does not think that far.
Citizenship, said our Prime Minister in his excruciating London speech, is not a “transaction” (doesn’t he realise the irony of that word?) but an ongoing exchange between the Maltese people and their country. Whatever he means by such waffle is anyone’s guess, but what we do know is that the passport takeaway scheme is key to balancing his budget. That was his secret roadmap.
That the scheme is highly unpopular because of the sheer shamelessness of it all is very evident, which is why the Nationalist Party should not bother philosophising too much about national identity and national pride. People don’t like this, but Labour has long lost its soul to money, and this should have come as no surprise.
The bottom line of the takeaway scheme is this:
Government says in its budget it shall be clamping down hard on local tax evasion but then promotes Malta as a tax haven for non-EU citizens.
Government has no tangible job creation programmes but, in the Prime Minister’s own words, is out to attract highly “talented and networked” people “to share in the Maltese and European journey” – in other words, compete in the local job market.
Government is undermining the hard-fought exemptions Malta obtained from the EU over property purchases, by marketing Malta’s real estate outside the EU.
That certainly pleases the real estate sector – surprise surprise – but prices, and expectations, shall rise.
Government is undermining Malta’s reputation as a financial centre and threatening jobs for short-term myopic gains.
And once again, the Government is undermining Malta’s relations with the EU whose citizens will be getting an inferior treatment to any stranger from Azerbaijan stopping by with a wad of money.
This is what the passport takeaway scheme translates into, a hypocritical, irresponsible, immoral and humiliating action that threatens people’s livelihood.
Then our Prime Minister, who only speaks in clichés, has the gall to say that his first budget came as a surprise for those who thought the Government would not keep its electoral promises.
The real worry is that the Government would actually keep its electoral promises, most especially those we do not know about – like this passport takeaway scheme.