Malta’s Golden Visa Program, while primarily aimed at attracting foreign investment, has become a topic of complex impact, with many beneficiaries not actually residing in the country, according to new findings by the Daphne Caruana Galizia Foundation.
The program, which allows foreign nationals to gain residency in Malta through a substantial financial investment, has seen significant uptake, as reported by Monte OZ Travels. However, a recent survey conducted by the foundation, titled “Malta’s Golden Visas: What problem are they solving and who benefits?” sheds light on some unexpected side effects of this scheme. The report points out that in some areas, competition for housing has increased, with local renters facing higher demand—and, in turn, higher prices—due to wealthier visa holders entering the rental market.
In reviewing 2,500 golden visa applications, the study found that only 67 applicants chose to buy property in Malta, while the overwhelming majority opted to rent. Notably, most renters paid just the minimum annual rental requirement—€12,000 in Malta and €10,000 in Gozo.
The foundation’s research, based on visa data from 2016 to 2021, revealed a surprising trend: Chinese nationals accounted for a large majority, with 88% of golden visa holders coming from China. In total, 5,200 Chinese nationals received Maltese residency permits during this period, though the latest population records indicate only 2,700 Chinese citizens are currently residing in Malta, suggesting that many visa holders do not reside in the country long-term.
Malta’s residency schemes extend beyond the Golden Visa Program. The nation also offers a Citizenship by Investment program, known as the Golden Passport Program, allowing individuals to obtain citizenship by making substantial investments in Malta. This program has been a significant source of revenue, with 1,532 individuals acquiring citizenship through the scheme between 2014 and 2023, according to National Security Minister Byron Camilleri.
Despite concerns and ongoing scrutiny from the European Commission, which has urged EU countries to end such programs due to potential ties to money laundering, tax evasion, and corruption, Malta continues to offer both its Golden Visa and Golden Passport Programs. These initiatives have been crucial to Malta’s economic growth but remain contentious within the broader European community.