Sale of Maltese passports nets Malta over €277 million in one year
● Hanley & Partners get over €13 million
Over €277 million in Individual Investor Programme (IIP) revenue have been distributed between the National Development and Social Fund and the Consolidated Fund, an annual report by the Office of the Regulator for the shows.
The report covers the period from 1 July 2016 to 30 June 2017.
During the period under review, a total of €290,225,000 was collected by Identity Malta.
“Contributions 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).”
According to the report, €194,381,249 were transferred to the National Development and Social Fund, and €83,306,249 went towards to the Consolidated Fund. In addition, €16,440,000 were went to to Identity Malta and €13,212,000 to Henley & Partners.
“This means that from the launch of the IIP till 30 June 2017, the total amount of funds distributed is as follows: €249,328,799 - the National Development and Social Fund; €106,855,199 - the Consolidated Fund; €23,701,500 - Identity Malta Agency; €19,054,000 Henley & Partners.
The report reads that the balance in the Suspense Account, which was still awaiting distribution, stood at €110,435,502 as at 30 June 2017.
377 applications
The report reads that 377 applications were received by Identity Malta throughout the period under review – an 18% decrease over the previous 12 months.
Most were from Europe (168), followed by Asia (81), the Middle East (51), the Gulf (31), Africa (21), North America (18), South America (4), Oceania (2) and the Caribbean (1).
The report also notes that the number of dependants included in the 377 applications amounted to 962, “which is less than the amount registered during the previous year (1,188). This is mainly due to the afore-mentioned decrease in the number of applications.” The report notes that the average number of dependants per application was to three.
As for approved applications, the report states that “the number of applications approved (i.e. applications for which due diligence has been positively concluded and a letter of approval in principle has been issued) was 422. This constitutes a significant increase from the previous year (241) and also from the year before that (75).” It is pertinent to note that the reason as to why these figures do not tally with those recorded in terms of applications is as there is a time-lapse during which an application is processed.
The number of withdrawn or rejected applications during the period in question stood at 83.
During the period in question, 386 applications had reached the final stage (i.e. when the naturalisation process was completed). “This constitutes a significant increase from the number recorded during the previous 12 months, which stood at 137.” With respect to this final stage, the 386 applications included a total of 1,409 persons. Apart from the 386 main applicants, there were 294 spouses, 487 minor dependants and 242 adult dependants.
In terms of employment status of the naturalised main applicants, the majority (57%) declared that they were selfemployed. The educational level of naturalised main applicants remained extremely high with around 69% having a tertiary level of education.
Property
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 three hundred and fifty thousand euros (€350,000) or by taking one on lease for a minimum annual rent of sixteen thousand euros (€16,000). “In this regard, during the period in question there were 386 properties that were either purchased or leased.” During this period, 46 properties were bought and 340 leased according to the report. “The value of the 46 purchased properties amounted to €35,284,168.97, averaging €767,047.15 per property.”
The report also notes that IIP Regulations state that an applicant shall make a minimum investment of €150,000 in Malta Government Stocks. “In this regard, the amount invested in such stocks between July 2016 and June 2017 totalled €58,371,279.83. Taking into consideration all investments made since the launch of the programme, the total amount would add up to €85,873,164.71.”
The total number of Accredited Agents as at the end of June 2017 stood at 141, an increase of nine when compared to the number 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).