The new government conditions for permanent residents are considered by many developers as imposing financial thresholds that are too high, the Malta Developers Association said.

In a statement, the MDA said it understood the genuine motivation behind the government's decision, even though some of its members may be adversely affected.

It said that contrary to popular perception, the financial thresholds and constraints in the new scheme did not apply to all foreigners who wanted to buy property in Malta but only to those who wanted to become permanent residents, a status that led to heavy social burdens on the Maltese government.

Contrary to what has been claimed, they said, the new parameters did not help prop up property prices.

"Neither Government nor the MDA are in favour of property prices being artificially high, as had happened in the past, because this is economically unhealthy.

"As a serious organisation, MDA is currently discussing with the government proposals for fiscal incentives indicated in the current economic situation, none of which involve amnesties or reducing taxes levied on developers' profits," the MDA said.