The discussions held yesterday between the government and the European Commission on adopting a residency clause were based on the international taxation law model that requires applicants to physically reside in Malta for at least 183 days in a year to be considered as residents, The Malta Independent online has learnt.

The government yesterday announced that it had obtained the commission’s approval after taking the ‘citizenship for sale’ scheme through its third round of changes. After having dropped the secrecy clause and then introducing the ‘investment aspect’, the government has now also included a one-year residency requirement prior to the granting of a passport.

But it was unclear yesterday as to what the 12-month residency referred to by European Commission meant. In a statement issued jointly by the EC and the government, it is said that “no certificate of naturalisation will be issued unless the applicant provides proof that he/she has resided in Malta for a period of at least 12 months immediately preceding the day of issuing of the certificate of naturalisation.”

But Prime Minister Joseph Muscat was quick to point out that applicants do not necessarily have to live in Malta to apply. He said that applicants do not have to live in Malta for a whole year but neither does this mean that they would not set foot on Maltese soil. Dr Muscat said that the whole thing will be based on Maltese residency laws.

Like the International Tax Law, Maltese law states that residents cannot spend more than 183 days outside the country. During the press conference, however, Dr Muscat was more evasive on the issue and seemed to imply that there will be no set term on residency.

On the other hand, PN Leader Simon Busuttil insisted that the Prime Minister was contradicting the commission. Dr Busuttil said that the PN would wait until the details of this requirement are clearer before pronouncing its position.

A spokesperson for Commissioner Reding this morning told this paper that the Commission will be “closely monitoring Malta’s implementation of the newly amended scheme and it will be keeping in touch.” The spokesperson also remarked that Ms Reding had insisted from the start that there should be a genuine link between the applicant and Malta.