Italy-Malta Double Taxation Agreement

Double Tax Avoidance Treaty Amended

Admin | 15 Sep 2019

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In March 2009, Malta and Italy signed a protocol amending the existing double tax avoidance treaty between the two countries, which first came into force in July 1981. The revised agreement was signed by Maltese Deputy Prime Minister and Minister of Foreign Affairs Tonio Borg in Rome, during the Maltese President's official visit to Italy. Speaking at the signing of the agreement, Tonio Borg stated, 'When the protocol enters into force, it will reinforce the provisions of the existing Double Taxation Agreement with Italy and will further encourage and facilitate investment and business opportunities and commercial exchanges between Maltese and Italian entrepreneurs.' Italian investment in Malta is strong with some 25 companies operating in various sectors either totally owned or in joint ventures. Italy is Malta's most important trading partner with trade exchanges exceeding €1 billion. Just over 26% of Malta's total imports come from Italy.  

Reciprocal tourism is also important, with 77,500 individuals visiting from the respective countries in 2010. Italy is also Malta's second most important tourism market.In 2010, the Italian Government removed Malta from the Italian blacklist of tax havens. The removal has generated added interest from Italian investors to carry on business in Malta or to use Malta as a centre for international operations given the resulting legal certainty. In particular, the removal from the black list means that Italian individuals wishing to move to Malta should be able to shed their Italian residence. This also aided in avoiding additional tax consequences for Italian businesses having subsidiaries or associated companies in Malta. 

The Maltese Italian Chamber of Commerce promotes business, develops and nurtures commerce, finance, tourism and culture between Italy and Malta. The Chamber can be considered to be the first point of reference for Italian business people who want to get to know more about Malta especially for those who intend to invest in the Maltese Islands. It and exploit its relationship with the other countries in the Mediterranean. The MICC is the ideal business partner having local staff who have great knowledge and possess a local background. 


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