Bulgaria & Malta Double Tax Treaty

The Double Tax Treaty Malta Bulgaria was signed on 23 July 1986.

Bulgarian Withholding Taxes

The main features of the Malta Bulgarian tax treaty are as follows:

Dividend Income

The Double Tax Treaty Malta Bulgaria states there is no Bulgarian withholding tax on dividends distributed by a Bulgarian resident company to a Maltese resident company.

Interest Income

The Double Tax Treaty Malta Bulgaria states there is no Bulgarian withholding on interest paid by a Bulgarian resident to a Maltese resident beneficial owner of the interest income.

Royalty Income

The Double Tax Treaty Malta Bulgaria sets out a maximum Bulgarian withholding tax of 10% on royalties paid by a Bulgarian resident to a Maltese resident beneficial owner of the royalty income.

Other Income

The Malta Bulgaria Tax Treaty states there is no Bulgarian tax on pensions arising in Bulgaria and paid to a Maltese resident.

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When navigating tax matters from Malta to Bulgaria and from Bulgaria to Malta, it’s essential to understand how the Double Tax Treaty between the two countries impacts taxation on income, capital gains, and other financial obligations. This treaty ensures that individuals and businesses benefit from reduced tax liabilities and avoid the risk of double taxation. By leveraging this agreement, both residents and companies can optimise their tax position when operating or investing across Malta to Bulgaria or Bulgaria to Malta. Please contact us should you require any more information on the Malta-Bulgaria Double Tax Treaty and the unique tax planning opportunities.

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