Both states generally provide for the usual method of credit to avoid double taxation. If the income of a resident residing in Spain is exempt from tax in Spain under the treaty, Spain can nevertheless take into account exempt income (exempt with progression) for the calculation of the amount of tax on the remaining income of that resident. Bulgaria Bulgarian tax agreements and international agreements In 2008, Malta and Spain marked 40 years since the establishment of diplomatic relations. A year later, King Juan Carlos I and Queen Sofia of Spain and the Spanish Foreign Minister travelled to Malta to strengthen their economic and social relations. During the visit, the Minister of Foreign Affairs signed a series of bilateral agreements with his Maltese counterpart after months of negotiations. The agreements covered a number of sectors, including a joint committee for Malta-Spain commercial navigation and a joint declaration on strengthening cooperation between the two ministries. This joint declaration is seen as confirmation of the excellent relations that Malta and the Kingdom of Spain have forged over the centuries. The discharge is granted in the form of a loan. In the absence of the tax treaty, double taxation subsidies remain available as a result of unilateral tax breaks for income outside Malta.
Businesses may, under certain conditions, apply for double tax relief under the foreign flat tax credit instead of other forms of double tax relief. This can be particularly advantageous in cases where foreign income has been tax-exempt or taxed at a reduced rate. Most of Malta`s double taxation conventions are based on the OECD model. Once concluded, a tax treaty becomes a law by ministerial decree and terminates all contrary provisions under Maltese tax law. Double tax breaks are possible under the relative tax treaty. For more information on Malta`s double taxation conventions, see below. Specific provisions apply to border workers in the following double taxation agreements: tax payers who qualify can benefit from double tax relief for income collected outside Malta and included in their taxable income. Successive Maltese governments have attempted to enter into double taxation agreements with major trading partners and emerging countries to stimulate the growth of international trade, including trade in financial services. To date, contracts with more than 65 countries are in effect and this policy is expected to continue in the future. The agreement between the Government of the Russian Federation and the Government of the Republic of Albania to avoid double taxation on income and capital taxes Maltese Foreign Minister Tonio Borg expressed satisfaction with the excellent bilateral relations between Malta and Spain and said that the agreements extended bilateral cooperation between the two euro area countries to a number of important sectors and activities. He said Malta and Spain shared common views on a number of issues that are important to both countries and aim to strengthen their trade relations and provide new opportunities for local investors to take advantage of the current international economic scenario. Dr Tonio Borg has agreed to continue to stimulate economic exchanges with Spain, particularly in the financial sector and in the renewable energy and pharmacy sectors.
There is a limitation of benefits under which the provisions of the art. 6 to 21 of the treaty do not apply: (i) to persons receiving special tax treatment under the laws or administrative practices of one of the states covered by the protocol; (ii) persons receiving special tax treatment from one of the two states identified as such by mutual agreement between the competent authorities. They cannot apply to the income of these persons from a resident state, nor to the shares or other rights of those persons held by such a resident.