Malta's Passport Buyers Purchased Over €35 Million Worth Of Property Within A Year

23rd January 2018

According to an annual report by the Office of the Regulator for the IIP programme, each property cost an average of €767,000.

During the period from 1st July 2016 to 30th June 2017, 46 properties amounting to more than €35 million, were purchased by participants in the Individual Investor Programme (IIP).

According to an annual report by the Office of the Regulator for the IIP programme, each property cost an average of €767,000.

The IIP Regulations oblige the main applicant to invest in a residential immovable property in Malta, either by acquiring and holding one having a minimum value of €350,000 or by taking one on lease for a minimum annual rent of €16,000. “In this regard, during the period in question there were 386 properties that were either purchased or leased,” the report said.

IIP applicants also have to invest a minimum of €150,000 in government stocks. The amount invested in government stocks for the period in question amounted to more than €58 million. "Taking into consideration all investments made since the launch of the Programme the total amount would add up to €85,873,164.71,” the report said.

Over €277 million coming from the IIP programme was distributed between the National Development and Social Fund and the Consolidated Fund, the report showed.

During the period under review, the contributions collected by the Identity Malta Agency amounted to over €290 million. “The contributions so collected initially go into a Suspense Account and it is only after the Oath of Allegiance is taken that the distribution of funds is carried out in accordance with the provisions governing the Individual Investor Programme (IIP).”

The report explained that during this period, the funds distributed saw €194 million go to the National Development and Social Fund, and €83 million go to the Consolidated Fund. In addition, €16 million went to the Identity Malta Agency and €13 million to Henley & Partners.

The report reads that the balance in the Suspense Account, which was still awaiting distribution, as on 30 June 2017 stood at over €110 million.

The number of applications to the Identity Malta Agency during this period amounted to 377, an 18 per cent decrease when compared with the number of applications received during the previous 12 months (451).

The total number of Accredited Agents as at the end of June 2017 now stands at 141, an increase of 9 when compared with the amount registered a year before. The agents are divided into four categories – Legal (46); Financial Fiduciary and Trust (58); Management and Consultancy (24); Property Consultancy (13).

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23rd January 2018

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