A revised citizenship-by-investment scheme unveiled on Friday has been welcomed by Malta’s business lobby, which said that the reforms reflect most of the changes suggested by its members.

The new scheme will, among other things, require wealthy investors to spend twice as much on property and to spend at least one year living in Malta before they can begin the process to apply for a Maltese passport. 

It is due to come into force in September and will be capped at a maximum of 1,500 applicants. 

In a statement on Saturday, the Malta Chamber said that the changes were positive and echoed proposals it had made in January of this year. 

The government’s decision to draw a line under the existing Individual Investor Programme –  parliamentary secretary Alex Muscat said that the government was “scrapping” it – was also a positive move, the Chamber said. 

It however said that the reforms missed a beat when it came to rental property requirements. Applicants who choose to rent rather than purchase property will have to spent at least €18,000 a year doing so, up from the current €16,000 requirement. 

According to the Chamber, the marginal increase will only serve to artificially inflate rental prices. 

“This will not serve to separate the rental market for IIP investors from that of the average wage earner who usually rents at the same value,” it said. 

Instead, the government should have scrapped the minimum rental value requirement and replaced it with a requirement for a property which is “adequate and suitable for the IIP applicant and his/her dependants,” including in terms of size, location and finishing standards.