Malta Double Tax Treaties 2023

Malta offers a favorable business environment for investors from the UK, with a competitive tax regime, strategic location, skilled workforce, stable economy and political environment, and diverse investment opportunities.

Let’s find out more about tax UK Malta double treaty as part relating directly to the competitive tax regime.

– The Malta UK double tax treaty is an agreement between the United Kingdom and Malta that is based on the principles of the Organisation for Economic Co-operation and Development Model Tax Convention and aims to eliminate double taxation on income and capital gains earned by individuals and companies operating in both countries.

Under the treaty, residents of the UK who receive income from Malta will generally be subject to tax in Malta on that income, but will be entitled to a credit for any UK tax paid on that income. Similarly, residents of Malta who receive income from the UK will generally be subject to tax in the UK on that income, but will be entitled to a credit for any Maltese tax paid on that income.

The Malta UK double tax treaty agreement covers the following income taxes: profits derived from air and shipping transport, immovable property tax, business profits, incomes from independent and dependent personal services, director’s fees, pensions.
The treaty also provides for the elimination of double taxation on capital gains, dividends, and royalties, and includes provisions for the exchange of information between the tax authorities of the two countries.

– Social Security Reciprocal Agreement Malta UK.
The Social Security Reciprocal Agreement has been signed by Malta and UK, at the time the UK Malta double tax treaty was agreed. The agreement ensures that individuals who have lived or worked in both countries can qualify for certain social security benefits in each country based on their periods of contributions.

Under the agreement, Maltese nationals who have lived or worked in the UK and British nationals who have lived or worked in Malta may be eligible for benefits such as retirement, disability, and survivors’ benefits, as well as healthcare benefits.
To qualify for benefits under the agreement, individuals must meet certain eligibility requirements, such as having paid social security contributions in both countries for a certain period of time. This agreement is now even more topical and important, following Brexit and the exits of the UK from the European Union.