Hungary & Malta Double Tax Treaty

The Double Tax Treaty Malta Hungary was signed on 6 August 1991 and is currently in force. The main features of the treaty are as follows:

Hungary Withholding Taxes

Dividend Income

The Double Tax Treaty Malta Hungary sets out a maximum Hungarian withholding tax of 5% on dividends distributed by a Hungarian resident company to a Maltese resident company where the Maltese resident company holds at least 25% of the share capital of the Hungarian resident company. In all other circumstances, the maximum Hungarian withholding tax is 15%.

Interest Income

The Double Tax Treaty Malta Hungary sets out a maximum Hungarian withholding tax of 10% on interest paid by a Hungarian resident to a Maltese resident beneficial owner of the interest income.

Royalty Income

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

Other Income

The Double Tax Treaty Malta Hungary outlines certain pensions and other similar remuneration arising from Hungarian sources and paid to a Maltese resident are taxable only in Malta. However such a rule does not apply to similar payments advanced by a Hungarian statutory body or local authority or a political subdivision thereof for services rendered therein unless the Maltese resident individual is also a Maltese national.

Please contact us should you require any more information on the Malta Hungary Double Tax Treaty and the unique tax planning opportunities. You can email us enquiries@papilioservices.com or call us directly on +356 2258 2000.