Libya & Malta Double Tax Treaty


The Double Tax Treaty Malta Libya between Malta and Libya, as amended, entered into force on the 20th of May 2010. The main features of the treaty are as follows:

Libyan Withholding Taxes

Dividend Income

The Double Tax Treaty Malta Libya sets out a maximum Libyan withholding tax of 5% on dividends distributed by a Libyan resident company to a Maltese resident company where the Maltese resident company holds at least 10% of the share capital of the Libyan resident company. In all other circumstances, the maximum Libyan withholding tax is 15%.

Interest Income

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

Royalty Income

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

Other Income

The Double Tax Treaty Malta Libya provides that professors, teachers or researchers resident in either contracting state are exempted from paying tax for two years on their remuneration when teaching or carrying scientific research in the public interest at a university or another officially recognised higher institution in the other contracting state.

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


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