Investor interest in Malta’s citizenship-by-investment program — the Maltese Exceptional Investor Naturalisation Program — remains high despite ongoing efforts by the European Commission to shut it down.
The commission recently filed a complaint before the European Court of Justice to force Malta to terminate the sole citizenship by investment program in the European continent.
The EC argues Malta’s decision to offer EU citizenship to investors is in violation of the principle of good faith cooperation agreed to by all member states.
European Commission Versus Investment Immigration
The move is another attempt by the EC against citizenship by investment programs offered by EU member states.
In October 2020, the EC sent a formal notice to Malta, Cyprus and Bulgaria urging the countries to terminate their programs.
Cyprus agreed to terminate its program in November 2020 after investigations revealed serious violations of rules, including inadequate due diligence, that allowed ineligible investors to qualify for EU citizenship. Bulgaria discontinued its program in April.
Read More
Malta and Portugal: World’s Top-Ranked Citizenship and Residence-by-Investment Programs
Malta’s New Golden Visa: Lower Investments but No More Return of Funds
Malta to Launch Revamped Investment Immigration Program
Malta: Preferred Choice for Wealthy Chinese Investors
Malta introduced a new program in 2021 after the original program that was introduced in 2014 met its cap of 1,800 successful applicants. The first program helped Malta raise more than a billion euros in foreign investment.
The bulk of demand for the program came from China, Russia, and the Gulf countries. Despite efforts by the EC, the program is unlikely to fall out of favour with wealthy investors around the world.
China has the second-highest number of billionaires in the world and is the most significant source of demand for investment immigration programs.
The country’s rigid zero-Covid policy is enhancing the appeal of a second passport for its wealthy elite. Further, conventional factors like risk of arbitrary government action and the economic, social, and personal advantages of settling in the EU continue to push investors towards Malta’s CIP.
The US has become a surprisingly strong source of demand for investment immigration in recent times. Political turmoil, high cost of living and the Supreme Court’s decision to overturn Roe vs Wade are pushing Americans to explore the option of settling in the EU.
With very good economic rationale to continue its program, Malta is unlikely to succumb to pressure easily.
Investment Immigration: All Round Surge in Demand
Demand for second passports surged by 300 percent among wealthy Americans between 2019 and 2021.
There has been unprecedented increase in demand for investment immigration across the world. In 2019, around 110,000 HNIs chose to invest in golden visa and economic citizenship programs. This is expected to rise to 125,000 by 2023.
From escaping a war-torn country to securing better educational and career opportunities for their children, to the desire to enjoy the sophisticated and cultured lifestyle of the EU, there are many factors contributing to demand for European programs, including those from Portugal, Greece, Spain and Italy.