The Agreement on the Avoidance of Double Taxation between Estonia and Malta was signed on 3rd May 2001 and came into force on 22nd January 2003. The Double Tax Agreement allocates taxing rights between the two states depending on the type and source of the income and the residence of the taxpayer, as well as imposes maximum tax rates on dividends, interest income and royalties. Yet, the tax caps envisaged under the Agreement are further substantiated by EU legislation as both states are member states of the EU since 2004.
Relations between Estonia and Malta were established in 1992 following Malta’s recognition of Estonia on 26 August 1991. Soon afterwards, the two states signed an Agreement on the Abolishment of Visa Requirements, which came into force on 1 January 1998. The current Maltese Ambassador to Estonia is Laurence Grech, residing in Valletta. Malta’s honorary consul in Estonia is lawyer Aku Johannes Sorainen. As of 25 November 2010 the Estonian ambassador to Malta is Merike Kokajev, who, like her predecessors, resides in Rome. Currently, Honorary Consul Lorraine Arrigo represents Estonia in Malta.
Economic ties between Estonia and Malta are healthy and the trade balance is positive for Estonia. In 2008 Malta was Estonia’s 89th trade partner. In 2009 Malta’s relative importance as a trade partner to Estonia grew and it jumped to the position of 69th trade partner, though experiencing a minor setback in trade in 2010. Main exports to Malta include animal products, mineral products and shipping supplies while Malta imports machinery and equipment, metals and metal products and chemical products from Estonia.
In a bid to increase communication between the two states in the sectors of trade, investments and tourism, a number of official visits were reciprocated over the years. In October 2003, President Arnold Rüütel came to Malta on a state visit with a number of entrepreneurs. The visit was part of a business seminar organised by the Malta Chamber of Commerce. During the seminar Estonian entrepreneurs were introduced to Maltese businessmen. Two agreements were signed within the framework of the seminar, namely a Co-operation Agreement between the Chambers of Commerce and Industry of the two states, and a Co-operation Agreement between organisations supporting public enterprises.
In March 2007, a 12-member delegation from the Bank of Estonia, led by bank president Andres Lipstok visited Malta. The main goal of the visit was for the central banks to exchange notes on their experiences, and for Estonia to get an overview of the Maltese economy and banking system. In June 2009 Prime Minister Lawrence Gonzi visited Estonia and in March 2010 Estonian Foreign Minister Urmas Paet returned the visit.
As of 31 March 2011 Malta had made a total value of €16.4 million in direct investments in Estonia, divided among wholesale and retail trade and real estate rentals and business. Estonia directly invested a total of €2.8 million in value in Malta.
