We had a conversation with Dr Russell Attard Baldacchino, a Maltese lawyer and licensed Agent who serves HNWIs seeking Maltese Permanent Residency (MPRP) and citizenship, on our podcast, The Golden Quarter Show.
Some of the key takeaways from our conversation with Dr. Baldacchino were:
- The accessible price tag of the Malta Permanent Residence Programme
- The added (Family) advantage of the Malta Permanent Residency Program versus the Greek Golden Visa or Portuguese Golden Visa
- Why programmes with donation elements create a necessary tie between the investor and the host nation
Malta experts – Attard Baldacchino
Lorena Jimenez: Russell perhaps if you could give us a little bit more insight on your recently launched practice Attard Baldacchino– what motivated you to start it and so far, what have been your greatest hurdles.
Russell Baldacchino: I think I can safely start off by safely saying that 2020 was quite a year of change not just for myself but for everybody. I had the idea of starting my own practice for quite a while now, and for the last few years, namely 7, I was working with one Malta’s leading investment migration agents and that has obviously allowed me to generated quite a lot of experience.
I would say that one of the motivating factors behind starting my own practice Attard Baldacchino is that basically in 2020 it was made public that the previous Citizenship by Investment program had nearly reached its limit and there was also discussion of changes being to Malta’s residence by investment programme.
So overall having a number of years of experience in the industry and knowing that significant changes to Malta’s programmes were on the horizon, I felt it was the perfect time to launch.
In terms of hurdles, I must admit that the first couple of months weren’t easy. Mainly, there was a situation that until the publication of the Granting of Citizenship by Exceptional Services Regulations, it was not possible for anyone to apply for a new license (as a licensed Agent). However, once the regulations were published, I did of course apply and was one of the first persons to be granted a license by Community Malta Agency in January of this year. Overall, the response has been very good and so far I haven’t had any hurdles since.
Lorena Jimenez: Congratulations and the best of luck on your new venture.
How do Malta’s investment migration programs compare to European counterparts
Lorena Jimenez: So, looking at other residency programmes within Europe, the Portugal Golden Visa and the Greek Golden visa programmes are popular alternatives. How do you feel that the Malta Permanent Residence programme compares with these other residency programmes.
Russell Baldacchino: Very good question and had you asked me this question a few months ago about the (former) Malta Residency Visa Program (MRVP), my answer in favour of Malta may have not been as confident. However, with the publication of the MPRP program https://www.attardbaldacchino.com/mprp-malta-permanent-residence-programme – I can safely say that the new residence programme (MPRP) is now positioned as the most attractive option available.
The reasons why are that the MPRP is developed on a previous programme that was extremely successfully in its own right. So, the MRVP generated nearly EUR 50 million for Malta between 2017 and 2020. The new programme is built on the old programme however it has been simplified by doing away with the EUR 250,000 securities investment and it is now limited to a government contribution, and the option of purchasing or renting a residential property in Malta.
I believe the strength of any investment migration programme is best evaluated in terms of the extent to which it satisfies the needs of its prospective applicants, and from my experience the main reasons individuals seek a second residence is for peace of mind in terms of their long-term safety and the security of their family.
If we are looking at Greece and Portugal, they do offer the option to include children and family members, however in comparison with the changes in place Malta certainly caters best for this need. Under the MPRP, applicants can include up to 4 living generations (i.e. Main Applicant & Spouse, Children, Parents and Grandparents of both applicant and spouse) at time of application. It also caters to include family members in the future. Another crucial point about Malta is that there is no age limit on children, so long as they are unmarried and principally dependent on the main applicant.
Overall although other programmes in Europe do offer similar solutions, I do think that Malta has the greatest flexibility to include family members.
Furthermore, it is not limited to the present but the future. So if an applicant does apply as a sole applicant, a future spouse may be included and obviously as the application grows, children may be included in the application for free. Not only that but if the dependents do get married or have other children in the future, they too can be included on the same certificate. So the main point I would say is that Malta definitely stands out in terms of the family aspect.
I would say the next determining factor, is the total cost. With the revamped Malta Permanent Residence Programme, Malta certainly leads the way here. For a total cost of EUR 150,000 the application will cover the main applicant, spouse and any number of unmarried and principally dependent children (with no age limit).
Whereas if you look at Greece and Portugal require a minimum investment of at least EUR 250,000. So overall if you look at the family structure that can be included, the total cost and the fact that Malta is an English-speaking jurisdiction, I do believe that Malta has the strongest position.
Read more: How have the Malta Permanent Residence Regulations changed?
Demand from HNWI markets for Malta
Lorena Jimenez: Very interesting that they are quite flexible in terms of future additions. So that definitely does stand out as a very unique characteristic of that golden visa programme.
Regarding demand, for the Maltese residency program, has the pandemic had any impact on the markets where you’ve been receiving enquiries or the calibre of prospects you have been receiving?
Russell Baldacchino: Well, of course the pandemic has had an impact across the board in terms of all jurisdictions being impacted. If I were to look at which markets have been most attracted to the programme historically, China is by far the leader in this regard but over the last three years we have seen an increase in demand from South Africa, Turkey, Russia, Vietnam, India, the Middle East and North Africa.
As to the impacts of the pandemic, I wouldn’t say that it has really impacted the calibre of prospects, although the positive changes implemented in Malta’s new residence-by-investment programme do make it more accessible to more people worldwide as it makes it more affordable.
The pandemic has made things harder for the industry, as it has limited the facility for prospects to visit Malta and experience all that we have to offer in terms of culture, cuisine, weather and overall hospitality.
However, on the back of that I would say that the pandemic has actually sparked an increase in demand for people to apply second residency or citizenship. COVID-19 has made us experience restrictions on travel and mobility that were unforeseen to most on such a global level. Whilst having a second residence or citizenship may not be a complete solution to these restrictions or future restrictions, it definitely puts more options on the table for the individual family members when taking important life decisions.
The reality remains that we are still in the midst of the pandemic, and will continue to experience its impact for years to come.
If I had to give my advice on the situation, to those considering an investment migration programme at the moment the best thing to do would be to educate oneself on the various options available, as there are quite a few available and to seek the right advice from Government approved and licensed professionals.
Donations and investments
Lorena Jimenez: In terms of another key and comparatively unique aspect of the Maltese programme is that it has a donation element, so whilst it is becoming more popular, compulsory contributions can probably create some questions from prospects. How do you relay this to prospects and explain it – how do you get over this when dealing with clients in the initial stages.
Russell Baldacchino: Also, another very good question, to me this really ties in to a crucial point for any investment migration programme and that is the actual substance and ties to the local community of the jurisdiction.
So, when it comes to explaining it to applicants most of the time its welcomed very positively, I’ve only had very few instances when a client might question this. If we look at the figures under the MPRP the donation requirement is only EUR 2,000, whilst if we are looking under the Granting of Citizenship for Exceptional Services Regulations the minimum donation is EUR10,000. Of course this reflects the different type of programme.
In my opinion, the value here goes beyond the financial donation, as in reality it is an opportunity for the applicants to build more valuable relationships with Malta, they can support a specific area of their choice in the community, and in some cases I’ve seen applicants get really hands-on in an organization or starting their own philanthropic organization in Malta.
So, from a technical perspective, donations do need to be made to a registered voluntary organization or other approved body, such as the Malta’s Research, Innovation and Development Trust. With over 1,100 registered Voluntary Organizations in Malta, applicants will definitely find a cause that they eagerly want to support, be it in cancer research or support, poverty, childcare homes, or cutting-edge research for the future. It is up to the applicant to choose how and where they chose to help out as long as they meet the minimum criteria
All individuals in the past have welcomed this idea, and what is interesting to mention is that in the past most applicants would make similar donations in the past before this was even a mandatory requirement. At the end of the day this donation does give the applicant an opportunity to build a stronger bond with the Maltese community, whilst allowing for a personal touch that would have otherwise been missing.
Lorena Jimenez: Hopefully this will funnel a lot more funds towards good causes as you mentioned such as cancer research and poverty reduction. In terms of actual clients and prospects making the move to Malta.
Relocating to Malta
Lorena Jimenez: The past 12 months, everyone has been reading about how important it is as a priority for high-net-worth individuals to have a second residency, passport or just a viable Plan B.
The new Malta Permanent Residence holders, do you feel that post pandemic and once travel restrictions are let up, will many of them be making the actual move to Malta? And what is it about Malta that would make them want to set up a home or base there?
Russell Baldacchino: Obviously a very relevant question given the circumstances, so I think that like the rest of the world, Malta has made a faced a number of ups and downs over the past 12 months. That being said we have made excellent progress on a number of key elements and done our best to adapt overall. Focusing specifically on the covid situation itself if we had to take a look at numbers as a country we’ve had just over 29,000 cases (at the time of recording – just over 30,000 at present) and out of those 97% (at the time of recording 98% at present) recovered around 1.8% remain active and there were unfortunately a few deaths (~400) as well.
However, the vaccine rollout has been very efficient, with over 215,000 first doses administered (at the time of recording 400,000+ at present) and just under 60,000 second doses (at the time of recording, 140,000+ at present). Considering a population of around 500,000, these numbers are quite significant. Overall, the restrictions put in place have significantly reduced the number of new daily cases which are continuing to decline.
In terms of the economics of the situation, measures and subsidies have been introduced to support business, employees and the economy in general.
One aspect that applicants may find interesting is that the government have implemented incentives in relation to the real estate market so there are opportunities in the real estate market and it has been doing well considering we have been in a lockdown throughout periods of time over the past year.
Another key point to mention is that individuals that would like to apply is that from a touristic perspective, the Government also announced that we shall be welcoming vaccinated tourist from the UK etc… as of June. Taking everything into consideration Malta is relatively one of the safer places to be at the moment and we should continue to see improvement over the coming months.
So, while applicants are welcome to visit Malta at any point throughout the process, individuals who get the ball rolling on their MPRP application now, are technically not required to travel to Malta until their MPRP application has been submitted and approved. Even after that they have up to 8 months to complete the contribution and property requirements.
So, from a practical perspective anyone interested in Malta who wants to start their process can definitely do so we obviously have all the measures in place to handle the process online and provide all the support necessary. Overall we do expect to see demand increase and people to continue to apply under the new programme.
Lorena Jimenez: Russell, it has been a pleasure having you on and also learning more about the Maltese program. We would like to reiterate our best wishes for your new venture and the best of success with that.
Before we wrap up, if you could let our audience know where is the best place to reach you, how they can contact you that would be great
Russel Baldacchino: Thank you, Lorena, and yes if anyone is looking to reach out we have our https://www.linkedin.com/in/russellattardbaldacchino/ and Facebook pages and also a lot of information is available on our website www.attardbaldachino.com. I’d be happy to hear from anyone interested and help out with any considerations that people might have at the moment.
