Malta is setting a great example of effectively using funds collected from citizenship by investment program towards social welfare benefits of the people.
The Malta Citizenship by investment (CBI) scheme was launched in 2014, regulated by the Maltese Citizenship Act (CAP. 188) and the Individual Investor Programme of the Republic of Malta Regulations, 2014 (L.N. 47 of 2014). The Individual Investor program (IIP) regulations require investor citizenship applicants to contribute make a contribution of €650,000 to the Maltese Government, which is deposited in the National Development and Social Fund (NDSF)
The National Development and Social Fund agency was established for the purpose of managing and administering 70 percent of the contributions received from the Individual Investor Programme of the Republic of Malta set up by virtue of the Malta Citizenship Act Cap.188. The NDSF’s mission is to contribute towards, promote and support, major projects and initiatives of national importance and public interest which are intended to develop and improve the economy, public services and the general well-being of present and future generations.
The NDSF fund revenues reached €432 million by the end of Aug 2018, since the inception of IIP in 2013.
To this date some €89.9m CBI funds were used for housing, hospitals, healthcare and sports. This roughly constitutes about using 20% of NDSF funds for welfare projects.
The CBI funds from NDSF were used for the following purposes, which is summarised below.
- In Jan 2018, NDSF released €950,000 for the purpose of upgrading Mater Dei Hospital’s two catheterisation suites at its Cardiology Department.
- In Sep 2018, new accommodation units in central London for Puttinu, partly financed through a €6 million contribution generated by the IIP of which €5 million contribution made through the National Development and Social Fund (NDSF),
- In Feb 2019, NDSF signed a memorandum to commit €50 million towards a social housing project. 500 new social housing units in 22 different sites. These sites are spread over 12 localities, namely Paola, Kirkop, Rabat, Żabbar, Mellieħa, Luqa, Żurrieq, Żebbuġ, Qormi, Siġġiewi, Qrendi and Marsascala.
- In May 2019, 8 health centres and 54 community clinics across the island are to benefit from a €10 million investment deriving from IIP proceeds, administered by the National Development and Social Fund benefiting some 72,000 people.
- In May 2019, 500 more new social housing units announced, increasing the Malta Government Investment towards housing by €10 million from the National Development and Social Fund.
- In May 2019, Athletes and coaches will benefit from a €6 million investment, whilst another €30 million will be invested in facilities, including an annual €11 million grant to SportMalta. The additional € 6 million, coming from the National Social Development Fund, which will go direct investment in themselves sportsmen and coaches to bring Malta that can help bring results. PM Muscat said sports as a pillar in our social life and want to invest more.
According to the ORiip report released last year, Malta received 1,431 applications since the inception of which 931 cases were approved for citizenship for investments. The citizenship investments reached close to €1bn as of mid 2018, with €672m contributions, €110m in real estate sales, €126m in Government stocks, €5.5m in fees and €70m in rented properties.
IIP applicants are also making donations to NGO’s by providing regular financial contributions. Last year the parliamentary secretary announced IIP applicants have made around 600 donations, amounting to €3.6 million, to 99 entities, amongst which are Puttinu Cares which have received around €1 million
Individual Investor Programme is an unique citizenship by investment opportunity to attract new investment, new talent, and families that genuinely want to become Maltese citizens. This initiative provides the opportunity to understand the Maltese culture and learn all about the traditions that are close to the heart of the Maltese.
Malta’s due diligence standard widely regarded as gold standard in the CBI industry leading from the front.
