A Double Tax Agreement was signed between the two countries in 2006 to avoid the double taxation of income and prevent tax evasion. It has been in force since January 2007. The Agreement meant an end to Malta’s inclusion in the Spanish black list, a status that had made it difficult for Spanish business to invest in Malta. Apart from the removal of trade impediments throughout the EU, today, Spanish investors benefit not only from the rights under the Agreement but also from freer access to Malta’s beneficial tax regime.
The two states look forward to promising avenues for further developments in bilateral economic relations as well as the progressive involvement of Spanish firms in EU-funded projects in Malta, particularly as a platform in the Mediterranean for their regional operations. Spain has expressed interest in investing in several sectors such as in the banking and finance, energy, chemicals and environmental sectors. Further, an increasing number of well-known Spanish firms have become active in Malta through local franchises including business in the clothing/textiles sector, in the pharmaceutical sector, in the food sector, in hotels and in the wine industry.
In 2008 Malta and Spain marked 40 years since establishing diplomatic relations. A year later, King Juan Carlos I and Queen Sofia of Spain visited Malta, together with the Spanish Foreign Minister, to boost economic and social ties. During the visit, the Foreign minister signed a number of bilateral agreements with his Maltese counterpart following months of negotiations. The agreements related to a spectrum of sectors including a Malta-Spain Joint Committee on Merchant Shipping and a Joint Statement to strengthen the cooperation between the two ministries. This Joint Statement is considered to be a confirmation of the excellent relations that Malta and the Kingdom of Spain have built over the centuries.
Malta’s Foreign Minister Dr Tonio Borg expressed his satisfaction over the excellent bilateral relations between Malta and Spain, saying that the agreements extended the bilateral cooperation between the two eurozone states on a number of important sectors and activities. He opined that Malta and Spain share common views on a number of issues which are of importance to both countries and intended to further strengthen their trade relations as well as to open new opportunities for local investors who were keen to find take advantage of today’s international economic scenario. Dr. Tonio Borg expressed his willingness to further boost economic exchanges with Spain, especially in the financial sector and in the renewable energy and pharmaceutical industries.
Recently, Dr Tonio Borg held a bilateral meeting with the new Spanish Foreign Minister Trinidad Jiménez. The meeting brought up the two countries’ historical ties and the common interest in the Mediterranean, again highlighted the excellent bilateral relations between Spain and Malta. They stressed the need to promote regional cooperation through the Union for the Mediterranean.
The Maltese-Spanish Chamber of Commerce acts as a networking platform for business initiatives and trade between Malta and Spain. It maintains close links with its members and with the worldwide network of national and other bilateral Spanish Chambers of Commerce and has an excellent working relationship with the Embassy of Spain in Malta and the Malta Chamber of Commerce, Enterprise & Industry. The Chamber contributes to a greater understanding of the economic environment in both countries and facilitates entry into specific markets that members have identified as part of their strategic plans.
