Portugal & Malta Double Tax Treaty

The Double Tax Treaty Malta Portugal, as amended, was originally signed 26th Jan 2001 and is currently in force. The main features of the Malta Portugal Tax Treaty are as follows.

Portuguese Withholding Taxes

Dividend Income

The Double Tax Treaty Malta Portugal sets out a maximum Portuguese withholding tax of 15% on dividends distributed by a Portuguese resident company to a Maltese resident company.

Interest Income

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

Royalty Income

The Double Tax Treaty Malta Portugal states that while certain royalty payments are not subject to any Portuguese withholding tax the treaty sets out a maximum Portuguese withholding tax of 10% on royalties paid by an Portuguese resident to a Maltese resident beneficial owner of the royalty income.

Other Income

The Double Tax Treaty Malta Portugal states that pensions and annuities from Portuguese sources paid to a Maltese resident are taxable only in Malta. However such a rule does not apply to similar payments advanced by an Portuguese statutory body or local authority or a political subdivision thereof for services rendered therein unless the Maltese resident individual is also a Maltese citizen.

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