As international financial centres battle for a slice of cross-border business, the Mediterranean island of Malta says there has been strong demand for its Individual Investors Program, which carries citizenship rights.

As international financial centres battle for a slice of cross-border business, the Mediterranean island of Malta says there has been strong demand for its Individual Investors Program, which carries citizenship rights.

The IIP “allows for the grant of citizenship to duly qualified, reputable foreign individuals and families who make a significant contribution to the economic development of Malta” according to a press release from Henley & Partners, a firm that designed and operated the scheme on behalf of the Malta government.

More than 200 applications for citizenship have been received since the programme's launch in early 2014, with a number already at the due diligence phase. This represents a commitment of foreign direct investment into Malta of over €200 million ($330 million) in the past six months, the organisation said.

The Malta scheme has prompted controversy since the idea was floated by the Labour-led government last year. Members of the European Parliament, among others, criticised it for being lax and for cheapening EU citizenship. As a result of pressure, the government said applicants must be resident in Malta for at least a year to qualify. Malta, like most of the EU's 28 countries, is in the Schengen zone, where citizens can mostly travel without passport checks. Other countries, such as Spain and the UK, have adopted schemes to encourage high net worth individuals to invest in these countries, usually with the incentive of accelerated citizenship rights. (To see a previous story on the matter, click here.)

“The IIP has the world's strictest due diligence standards, ensuring that only highly respectable clients will be admitted. The programme intake is also capped at 1,800 successful main applicants, after which the programme will close, making this the most exclusive program globally,” Henley & Partners said. Among the applicants for the scheme, there are more than 30 nationalities represented, it said.

“Many applicants started the IIP process intending to rent property on Malta, but are now considering purchasing, having spent time on the islands,” the firm said.