A comparative analysis between Malta’s individual investor programme and foreign citizenship-by-investment programmes : the way forward

Abstract

This thesis aims to analyse Malta’s Individual Investor Programme (IIP) in comparison with foreign Citizenship-by-Investment Programmes (CIP) and to put forward a number of amendments which will further enhance the IIP Regulations, as are currently regulated through Legal Notice 47 of 2014. The IIP was the target of heavy criticism and a topic of controversy when it was initially introduced back in 2013, being deemed by many as a “passport for cash” scheme. However, as this thesis will analyse in-depth, the IIP is a scheme allowing foreign investors to acquire Maltese citizenship through investment in the Maltese Islands. Moreover, the Regulations provide that said Maltese certificate of naturalisation will only be granted once enough evidence is brought forward to show that the applicant has satisfied the genuine link requirements and thus has created a link with Malta and its citizens, which can be done through various means. On a European Union level, Cyprus, Bulgaria and Austria also offer citizenship to investors that make a certain amount of investment in the respective member states. As will be discussed, whilst Cyprus offers a formalised CIP, Bulgaria and Austria do not offer citizenship to investors through a formalised programme. This may therefore, at times, create an element of uncertainty amongst individuals willing to invest in said countries. The Caribbean Island countries of St. Kitts and Nevis, Antigua and Barbuda and The Commonwealth of Dominica also offer citizenship through investment through a formalised CIP which, upon close analyses, is to a certain extent similar to the Maltese IIP. Further amendments to the IIP will ensure that the Maltese IIP will keep up with the foreign CIPs, whilst facilitating procedures and ensuring that foreign investors will be willing to acquire Maltese citizenship by investing in the future of the Maltese Islands.