- July 7, 2021
- Posted by: Stephane Tajick
- Category: Competitive Research Analysis
That’s what we’ll answer below.
The MPRP is the successor of a previous investment program hosted by Malta called the MVRP.
The MVRP was a huge success, garnering 2400+ applications over its lifespan (and a 70% approval rate), even in the face of fierce European competition.
The new program will try to carry on that success. With the New MPRP, Malta aims to introduce a lucrative offer that balances between investor’s needs, and the archipelago’s goals.
Who’s Overseeing the Program?
The MPRP will be managed by the RMA (Residency Malta Agency). It’s a government-established institutions, and its activities include:
- Overseeing program operations
- Agent appointments
The previous program was managed by Charles Mizzi (from the Malta Visa Residency Agency). He will be continuing to manage the new program through the RMA.
What Does the New Program Offer?
First, it offers real estate investment options (for both buyers and lessors). Applicants leasing property have the lowest entry barrier in Europe.
Lessors can invest EUR 150,000 to attain permanent residency. The value is not recoverable, which is a major change from the previous program.
This has led to many outlets questioning the competitiveness of the program compared to Europe.
After all, while European countries impose much higher entry barriers, the investment amounts are easier to recover.
But according to Charles Mizzi, the structure of the program balances the interests of applicants and Malta’s economy.
With low entry barriers, Malta has become open to investors who might not fit the criteria for most European programs – thus opening a new applicant market to the island.
Alternatively, irrecoverable funds become direct investments into the Maltese economy, thus acting as a source of revenue.
The only foreseen obstacle is the coronavirus pandemic. With lockdowns and travel restrictions in-place, it may be a while before Malta sees new residents.
Chinese Interest in Malta’s Program
Chinese investors accounted for the majority of applicants in the older MRVP – and it’s likely they’ll be interested in the new program.
In response to those results, the RMA is attempting to diversify its investment market. It aims to target locations such as India, Africa, the Middle East, and South East Asia.
The RMA is preparing a detailed marketing strategy to appeal to those markets. Additionally, they’ll be working in-tandem with licensed agents, providing them support tools for their marketing initiatives.
This’ll include marketing materials in multiple languages, and roadshows under development.
Also, the RMA plans to initiate marketing without using of marketing partners. The organization believes that licensed agents have the networks and experience to promote the program in multiple markets.
To that end, the RMA plans to support all licensed agents equally.
No Concessions for Certain Regions.
The RMA plans on setting a flat investment rate for all applicants, regardless of country.
Malta sees that a flat entry requirement for all as an excellent branding strategy. It creates an image of a country that’s accepting of all nationalities. This’ll allow it to diversify its applicant base, without alienating the Chinese market.