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Maltese CBI Application Volume Bounced Back in 2023, Fresh Data Show · IMI Podcasts

• 0:00
  SPEAKER_00: Malta's exceptional investor naturalization policy, also known as MEIN, rebounded in 2023, as applications jumped 69% year on year while recording the lowest rejection rate in program history, according to the 10th annual report by the Regulator of the Granting of Citizenship for Exceptional Services, or the GCES.
• 0:25
  SPEAKER_00: Applications increased to 299 in 2023, from 177 in 2022.
• 0:33
  SPEAKER_00: This growth brings the total application count to 2,721 since the program launched in IKE Bin on Dort.
• 0:41
  SPEAKER_00: Rejections and withdrawals fell to just 23 applications, resulting in an 8% rejection rate, the lowest in program history.
• 0:50
  SPEAKER_00: Carmel L.
• 0:51
  SPEAKER_00: De Gabriele, regulator of the Granting of Citizenship for Exceptional Services, highlighted that 2023's application numbers amounted to 299, which amount is three times higher than the average for the period 2021 to 2022 for both GCES and IIP.
• 1:13
  SPEAKER_00: De Gabriele attributed previous years' application declines to the COVID-19 pandemic, the start-off of infringement procedures by the EC against Malta, and last but not least the EU sanctions against Russia and Belarus.
• 1:28
  SPEAKER_00: He noted that, if this latter-named sanction against all Russian nationals would not have been in place, the number of applications would have been much more than those that have been conveyed by the respective annual reports.
• 1:42
  SPEAKER_00: Asian investors now dominate the program, comprising 51% of all applications in 2023, up from 38% in 2022.
• 1:53
  SPEAKER_00: European applicants continued their sharp decline, falling to 13% from 23% in 2022 and 48% in 2021, likely reflecting the impact of Russia's exclusion from the program.
• 2:07
  SPEAKER_00: For the first time, Malta reported data on applicants with multiple nationalities, who accounted for one in seven of all applicants.
• 2:17
  SPEAKER_00: The report also documented one stateless applicant in 2023.
• 2:23
  SPEAKER_00: North American applications declined significantly to 13% from 30% in 2022.
• 2:32
  SPEAKER_00: Despite the data showing North American applications declined in relative terms, overall percentage, De Gabriele explained the number of applications coming from the North American region increased abruptly and substantially, in absolute terms, which he interpreted as clearly signifying the trust and credibility in Malta's CBI schemes by applicants hailing from the North American region, notwithstanding the undue mistrust and highly high-handed actions taken by the EC against Malta.
• 3:04
  SPEAKER_00: In keeping with the historical trend, men accounted for four-fifths of applications also in 2023.
• 3:12
  SPEAKER_00: The capital inflow from citizenship sales grew to€115 million in 2023, up from€110 million in 2022.
• 3:23
  SPEAKER_00: Mandatory contributions generated 81 million euros, representing 70% of total revenue.
• 3:31
  SPEAKER_00: Real estate investments contributed€22 million, 11 million euros from property purchases, and 10 million euros from rental agreements.
• 3:41
  SPEAKER_00: Applicants continued to display a strong preference for renting rather than buying a home in Malta.
• 3:48
  SPEAKER_00: A record 95% of applicants chose to lease rather than purchase property in 2023 compared to 91% in 2022.
• 3:59
  SPEAKER_00: For those who did purchase property, the average price reached€2,227,500, 26% lower than 2022's average, but still more than three times the mandated minimum of€700,000.
• 4:16
  SPEAKER_00: This suggests that while fewer investors chose to buy property, those who did continued to invest well above minimum requirements.
• 4:25
  SPEAKER_00: Rental costs averaged€102,664 for five-year leases, representing a 2% decrease from 2022, but remaining 6% higher than the five-year historical average.
• 4:38
  SPEAKER_00: Sliema and St.
• 4:39
  SPEAKER_00: Julian's remained the most popular locations for both rented and purchased properties.
• 4:44
  SPEAKER_00: Sliema attracted 477 rentals and 64 purchases since program inception, while St.
• 4:51
  SPEAKER_00: Julian's secured 257 rentals and 57 purchases during the same period.
• 4:58
  SPEAKER_00: Since program inception, Malta has distributed€1.15 billion of the€1.26 billion collected from mandatory contributions.
• 5:09
  SPEAKER_00: The National Development and Social Fund received€620 million at 54%, while€402.82 million, at 35%, went to the Consolidated Fund.
• 5:23
  SPEAKER_00: The Malta Individual Investor Program Agency, also known as MIIPA, Community Malta Agency, or the CMA, and Identity Malta received about€68 million, and Henley and Partners, the firm that originally designed the program, collected around 56 million euros in fees through vestigial payments stemming from its share of contributions to the erstwhile individual investor program, also known as IIP, not the current MEIN program.
• 5:56
  SPEAKER_00: De Gabriele praised the Community Malta Agency for, earnestly and proactively promoting widespread government cooperation and exchange of information among the various providers of CBI programs, not only EU-wide but also worldwide.
• 6:13
  SPEAKER_00: He further commended the CMA's open-door policy, which has strengthened our relationship and proper understanding of our respective functions, roles, and innate responsibilities.
• 6:24
  SPEAKER_00: The program's cumulative economic impact now stands at approximately 2 billion euros when combining contributions, real estate purchases, rental payments, bonds, donations, and other fees.
• 6:38
  SPEAKER_00: The MEIN and Malta are only a couple of days away from knowing what the future holds for the program, as the ECJ prepares to announce its ruling in the EU's case against Malta on April 29th.
• 6:52
  SPEAKER_00: The Advocate General has already sided with Malta in his opinion, but that does not necessarily mean the ECJ will follow suit.
• 7:01
  SPEAKER_00: In his foreword to the annual report, De Gabriele expressed his quote, fervent hope that the ECJ will come to appreciate and acknowledge Malta's sincere efforts and seriousness in granting such citizenships to third country nationals through its GCES scheme, only to those individuals who are truly worthy of such nationality.
• 7:25
  SPEAKER_00: End quote.com.
• 7:35
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• 7:42
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