Issue link: https://maltatoday.uberflip.com/i/750768
maltatoday, SUNDAY, 13 NOVEMBER 2016 8 MATTHEW VELLA IDENTITY Malta, the agency responsible for the sale of Mal- tese citizenship through the Indi- vidual Investor Programme (IIP), has set up a compliance unit to investigate potential abuses after a MaltaToday investigation found properties registered to new citi- zens appeared to fall below the threshold of prices. Last June MaltaToday ran a sto- ry titled "Letterbox millionaires – Not all Malta's golden passport buyers are buying €350,000 prop- erty", which article made refer- ence to a number of IIP citizens whose properties were clearly not falling either within the €350,000 acquisition mark or the €16,000 annual lease value. In an investigation carried out by the Regulator of the IIP, it turned out that in the 13 cases selected by MaltaToday, 11 had leased their premises and in six of these cases the lease value was "nearly equal to the threshold" save for a €200 difference. The regulator said this statis- tic implied the figure had been rounded upwards so that the rent- al would be in line with the IIP rules, or that the applicants had specifically selected a property that did not significantly exceed the minimum €16,000 threshold. But in continuing market re- search, the regulator found that lease values in specific towns like Naxxar, Qawra, Zejtun and Birzebbugia – where IIP appli- cants identified by MaltaToday leased their property – did not reflect real market prices. In the case of Zejtun, the regulator said: "One might be led to understand that the rental price of this apart- ment might have been lower than that which was eventually agreed with the lessee. Coincidentally the lessor in both the Zejtun and Birzebbuga cases was the same person." But subsequent to MaltaToday's report, Identity Malta started to request accredited agents to pro- vide a qualified architect's dec- laration to confirm the values of the properties being leased and purchased; and has set up a Com- pliance Unit tasked with monitor- ing and investigating potential abuses. This development has appar- ently annoyed the IIP's own ac- credited agents, who told the regulator that the introduction of an architect's evaluation was "not feasible". "They claim that architects are not qualified to give an evalu- ation of leased properties and that a more qualified authentica- tor should be found. Some sug- gested that the evaluation could be provided – in the form of a declaration – by themselves or by the estate agents submitting also photographic evidence in the pro- cess." The IIP agents contacted by the regulator even admitted that some of the properties purchased or leased by their clients might actually cost less, because there were not enough properties on the market to be leased out at €1,350 per month and so they were pushing up the prices of places that cost less. "In this regard they remarked that if a client was willing to pay more for a property whose value is less, why were they (the agents) obliged to intervene?" But the regulator noted that this assertion was incorrect, finding 2,152 properties on the online database of one of the main estate agents being leased at €1,000- €1,500. mvella@mediatoday.com.mt News maltatoday, SUNDAY, 13 NOVEMBER 2016 JAMES DEBONO A MaltaToday survey conducted over the past week shows that more than two thirds of the Maltese think that high-rise towers in general make the country uglier, irrespective of where these are located. The survey also shows that three-quarters of respondents would not like Malta to resemble Dubai with regard to its physical appearance. The greatest concern on high buildings is their impact on views and landscapes, fol- lowed by the perception that these are claus- trophobic or alien to the Maltese identity. While in their majority the Maltese dislike high-rise buildings, the survey shows 56% seeing some positive ad- vantages in high-rise devel- opment when asked to state one. The advan- tage which was most mentioned is that such buildings are perceived to occupy a smaller footprint of land than horizontal develop- ments and thus help reduce pres- sure on unspoilt land. When presented with a list of localities where according to present planning policies high- rise development can be allowed, 44% insisted that such development is unac- ceptable anywhere. An overwhelming 79% agree with a moratorium on high-rise projects until a master plan for such develop- ments is formulated. The survey also shows that environmental NGOs enjoy the trust of 52% of the Maltese. On the other hand the two major parties en- joy the same level of trust on environmental issues – just 36%. 13% opted for Alternattiva Demokratika (10%) and the new Democratic Party (3%). Newspaper post SUNDAY • 26 JUNE 2016 • ISSUE 868Ș • PUBLISHED EVERY WEDNESDAY AND SUNDAY SUNDAY • SUNDAY • 26 JUNE 2016 • ISSUE 868Ș 26 JUNE 2016 • ISSUE 868Ș • PUBLISHED EVERY WEDNESDAY AND SUNDAY • PUBLISHED EVERY WEDNESDAY AND SUNDAY • PUBLISHED EVERY WEDNESDAY AND SUNDAY • PUBLISHED EVERY WEDNESDAY AND SUNDAY maltatoday maltatoday YOUR FIRST READ AND FIRST CLICK OF THE DAY WWW.MALTATODAY.COM.MT FULL SURVEY PGS 10-12 Malta's letterbox millionaires Malta's €650,000 citizenship sale has netted Asian billionaires and the Russian elite seeking a hassle-free passport to travel across the Schengen zone. But requirements to buy a €350,000 property appear to be wilfully ignored, as photos of their 'hovels' clearly show – by MATTHEW VELLA and JURGEN BALZAN PAGES 6-7 This two-storey Naxxar maisonette on Triq il-Forga is listed as the address of Chinese billionaire Liu Zhongtian, chairman of China Zhongwang Holdings, one of the country's biggest aluminum makers. He is worth $2.8 billion, but is this property worth €350K? Gender studies expert Dr Brenda Murphy INTERVIEWED 14 15 €1.40 Towers will make Malta uglier, 68% say LEFT: The second floor of this office building on St Paul's Street in Naxxar should be housing the Khalaf family of three and Majdolin Al-Dawood. Is this a €350,000 property? RIGHT: Nobody answered apartment 5 of this cheap-looking Qawra holiday flat. But 'high net worth individual' Victoria Shopina is registered on this address NAXXAR NAXXAR QAWRA G & T PLAYING IT COOL SUMMER'S ICY REFRESHMENTS SIZZLING BBQ www.gourmettoday.recipes DINING OUT OUR FAVOURITE RESTOS FRITTERS ISSUE 40 • June 2016 WIN a meal for two at palazzo preca SUNDOWNERS BEER- BATTERED SCALLOPS BBQ WITH RAMON MUSCAT SIZZLING BB FREE WITH MALTATODAY 'Symbolically men are told they should take up space in the world… women are told not to' BREXIT: WHAT NEXT? 2 3 IIP agents annoyed they must back up property values with architects' declarations MaltaToday story on 'letterbox millionaires' leads to setting-up of IIP compliance unit and requirement for properties to be accredited by architects