Roughly one in every six residents in Żebbuġ, Gozo is a golden visa buyer, if official statistics are to be believed.
A new report released on Tuesday suggests golden visa buyers are paying the absolute minimum they are required to for accommodation, renting apartments that would otherwise be available to low-to-medium income renters.
Out of over 2,500 golden visa applications analysed, only 67 applicants chose to purchase a property. The rest all rented, with the majority paying the absolute minimum of €12,000 a year in Malta or €10,000 a year in Gozo.
The report is the work of the Daphne Caruana Galizia Foundation and produced with the support of Transparency International. Using data from thousands of golden visa applications between 2016 and 2021, writers revealed that:
- Nearly nine out of every 10 golden visa buyers (88%) are Chinese
- While 5,200 Chinese nationals bought golden visas between 2016-2021, the latest census shows there were just 2,700 Chinese people living in the country
- Even applicants who included up to five dependents on their application rented €850-a-month apartments in Gozo
- Just 2.7% of applicants chose to purchase a property. The rest all rented.
- Visa buyers from the top 30 high-risk jurisdictions for money laundering constitute over 91% of Malta’s golden visa buyers.
- The top visa agent (Mark Hyzler) processed more applications than the next seven combined
- High-end developments designated for wealthy third-country nationals do not seem to be attracting buyers: the vast majority of those who obtained an address there chose to rent
- Golden visa activity correlates with more trading in real estate – essentially adding fuel to an already hot housing market
Malta’s golden visa scheme allows wealthy investors to obtain residency in Malta against a financial contribution, passive investment and contribution to a non-profit. Applicants must either purchase a property worth €350,000 (€300,000 in Gozo) or rent one for a minimum of €12,000 a year (€10,000 in Gozo). Visa buyers must have a valid residence in Malta at all times, with no gaps.
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The golden visa scheme is distinct, but related, to Malta’s golden passport scheme, which provides successful applicants with a Maltese passport and which is being contested in court by the European Commission.
The visa scheme, which is administered by state agency Residency Malta, is a lucrative one: according to Budget financial estimates published last week, it raked in €31 million in 2023 and is projected to deliver a further €30 million next year.
The Daphne Caruana Galizia Foundation report finds that Żebbuġ, Gozo (including Marsalforn) was statistically the most popular locality for golden visa applicants to rent in, ostensibly gaining 440 new residents – the equivalent of 17% of its population.
Munxar, an even smaller Gozitan village that includes Xlendi, gained 190, or 14% of its population.
When calculated by number of applicants, the most popular localities for visa buyers were Żebbuġ (Gozo), Marsascala, Swieqi, Sliema and Munxar.
Researchers found that Malta’s golden visa scheme is marketed as being “affordable”, “easy” and as a way of “penetrating Malta’s affordable real estate market”. The biggest winners, they concluded, are Malta’s real estate sector.
Residency Malta told report writers that it has commissioned a study to determine the impact the scheme is having on the local property sector.