The Malta Golden Visa program has been overwhelmingly popular among Chinese nationals, who make up nearly 90% of its buyers. The program, designed to attract wealthy investors, continues to be a gateway for global mobility and European residency.
However, a report by the Daphne Caruana Galizia Foundation has highlighted reasons to be concerned about its design.
About the Malta Golden Visa
The Malta Golden Visa program offers residency to those who make significant investments in the country and meet certain requirements. Applicants can choose between property purchases, renting homes, or contributing to government funds. This residency grants visa-free access to the Schengen Area, as well as business and educational opportunities.
The program, however, has not been free from controversy. Critics argue that selling residency can undermine transparency and raise ethical concerns. Despite this, the initiative has become a part of Malta’s economic strategy to attract affluent individuals worldwide.
Chinese among top buyers
Reports reveal that Chinese nationals dominate the Malta Golden Visa market in Malta, with almost nine in every ten applicants. This trend highlights the growing interest among wealthy Chinese families in obtaining global residency options.
Experts attribute this dominance to several factors. Firstly, China’s affluent class seeks mobility and better opportunities for their children. Secondly, Malta’s location and access to the EU make it an attractive choice. Lastly, while China restricts dual nationality, the Golden Visa allows residency without citizenship conflicts.
Furthermore, with a Malta Golden Visa, they can extend similar benefits to their family members. For instance, they get access to Malta’s healthcare and opportunities in Europe. All while not needing to renounce their Chinese citizenship.
Why Malta?
Malta’s appeal lies in its many advantages. Its favorable tax system and strong connections to Europe make it highly desirable. Additionally, families are drawn to Malta’s healthcare and education systems, which rank among the best in Europe.
Investors also value Malta’s strategic position in the Mediterranean, enabling access to both European and North African markets. The country’s residency-by-investment program provides a solution for those seeking global mobility without giving up existing citizenships.
Challenges and Controversies
Despite its popularity, the Golden Visa program faces criticism. Transparency concerns have led watchdog organizations to question the program’s ethical standing. Reports suggest that it could create risks of money laundering and misuse by applicants.
The Malta Golden Visa program supposedly bolsters the country’s real estate sector, with a targeted influx in property investments. However, the Daphne Foundation discovered that the majority of Chinese buyers didn’t live in Malta, but in other countries. Out of 2,500 golden visa requests, only 67 actually purchased a property in Malta.
The rest, as it turns out, rented properties instead. As a result, Malta’s low and middle-income residents need to compete with visa buyers.
Moreover, the Daphne Foundation raised questions about who benefits from the program. It also noted that high-ranking officials and intermediaries were involved in the program. The foundation has urged more oversight to ensure investments genuinely contribute to Malta’s economy.
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