Malta’s agreement on Double Taxation Relief on Income with the Grand Duchy of Luxembourg was signed on the 29th April 1994 and became effective through L.N. 65 of 1996. The Agreement regulates the allocation of taxing rights between the two states and largely reflects the OECD Model Tax Convention.
By virtue of the Agreement, tax on dividends is capped at 5% of the gross amount if the beneficial owner is a company (other than a partnership) which holds directly at least 25% of the capital of the distributing company. In any other case, the tax rate is capped at 15%. Tax on interest income may only be levied by the state of residence of the beneficial owner of the interest, except where the beneficial owner carries out business through a permanent establishment in the source state. Tax on royalties levied in the source state is capped at 10% on the gross amount.
After Malta, Luxembourg is the second smallest member state of today’s European Union and both states are part of the Schengen area.
The Association for Maltese in Belgium and Luxembourg was launched on the initiative of the Embassy of Malta to Belgium and Luxembourg and with the assistance of the Permanent Representation of Malta to the EU and the Malta Business Bureau in Brussels, as well as with the generosity of a number of Malta-based companies, in February 2010. H.E. Pierre Clive Agius, the Maltese Ambassador to Belgium and Luxembourg explained that the launching of the Maltese Association was a needed social infrastructure for the Maltese community in Brussels and Luxembourg where the largest Maltese expatriate community has been established since the accession of Malta to the European Union.
Malta is represented in Luxembourg through its embassy in Brussels (Belgium) and through an honorary consulate in Luxembourg Ville.
[Full List of Malta Double Taxation Agreements]
