Kosovo & Malta Double Tax Treaty


The Double Taxation Relief Treaty between Malta and Kosovo was signed at Pristhina on 6 March 2019 and is currently in force since 20 September 2019. The main features of the Double Tax Treaty Malta Kosovo are as follows:

Kosovo Withholding Taxes

Dividend Income

The Double Tax Treaty Malta Kosovo states that the maximum Kosovo withholding tax on dividends distributed by a Kosovo resident company to a Maltese resident company where the Maltese resident company holds at least 10% of the share capital of the Kosovo resident company for at least 365 days before the payment is made, is 5%. In all other cases, the maximum Kosovo withholding tax is 10%.

Interest Income

The Double Tax Treaty Malta Kosovo sets out a maximum Kosovo withholding tax of 5% on interest paid by a Kosovo resident to a Maltese resident beneficial owner of the interest income.

No withholding tax is charged on interest payments in connection with the sale on credit of any equipment, merchandise or services, on any loan of whatever kind granted by a bank or on any interest paid to a collective investment scheme. Furthermore, no withholding tax is charged on interest payments on intercompany loans.

Royalty Income

The Double Tax Treaty Malta Kosovo states that no Kosovo withholding tax is charged on royalties paid by a Kosovo resident to a Maltese resident beneficial owner of the royalty income.

Other Income

The Double Tax Treaty Malta Kosovo states that pensions and other similar remuneration from Kosovo sources to a Maltese resident individual may only be taxed in Malta.

However, this does not apply for pensions paid by the Kosovo state or a political subdivision or local authority thereof, which are taxable in Kosovo only.

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


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