The high thresholds included in the government’s new permanent resident scheme will not artificially inflate property prices, the Malta Developers Association said yesterday.

Responding to concerns that the new scheme set overly high financial thresholds, the MDA said it was discussing proposals for fiscal incentives with the government. None of the incentives proposed involved amnesties or reducing taxes levied on developers’ profits, it added.

The government announced a new permanent resident scheme last week. The new scheme, which replaces the Permanent Residency Scheme, states that 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.

Thresholds for non-EU nationals are even higher. They must also place a €500,000 deposit when applying, as well as a further €150,000 for each dependent.

Contrary to popular perception, the new thresholds do not apply to all foreigners wishing to buy property in Malta, the MDA said.

Only foreigners who wished to become permanent residents would have to comply with the new regulations.

While the MDA acknowledged that some of its members might be adversely affected by the new scheme’s requirements, it understood the motivation behind the government’s decision, it said.