The success of the cash-for-passports scheme, launched by the government last year, is having a positive effect on the property market, according to Henley and Partners.
Describing Malta’s programme, technically known as the Malta Individual Investor Programme (IIP), as “the best citizenship-by-investment programme in the world,” Henley and Partners chairman Christian Kalin said the scheme was having a positive effect on the Maltese economy.
“The property market is buoyant with good quality property being in high demand and short supply so prices are increasing,” Mr Kalin said in a statement.
“All the current signs suggest that property investment in Malta will continue to provide a return of around five per cent per annum in the coming years,” he said.
According to Henley and Partners in less than two years since the launch of the programme, about 700 non-EU residents had already filed their application to buy a Maltese passport.
Property market is buoyant with high demand... so prices are increasing
This, according to Mr Kalin, resulted in a commitment of some €1 billion to the Maltese economy.
According to the law enacted in 2014, Malta will only grant citizenship to 1,800 applicants. When this capping is reached, the programme will be closed.
Applicants can also buy passports for their immediate family, including parents, spouses and children. The prices for these additional applicants vary from €25,000 to €50,000 per passport.
The main applicants for Maltese citizenship will have to fork out €650,000 in a donation to the Maltese government and abide by a number of conditions. These include an investment of not less than €350,000 in the acquisition of a property in Malta or the rent of an immovable property for a minimum of €16,000 a year.
According to Henley and Partners, which markets the programme internationally on behalf of the government, the IIP has been ranked as the best out of seven similar schemes in the world.In a report drawn up by the company, Malta placed first for citizenship-by-investment, above Cyprus, Austria, Antigua and Barbuda, St Kitts and Nevis, Grenada and Dominica.
According to the latest information given by the Maltese government, the majority of applications for Maltese citizenship are arriving from Russia and the former Soviet Union republics.