Do I pay stamp duty transferring company shares to a family member?
- 15.08.2026
I have income that appears to be subject to tax both in Malta, where I’m resident, and in another country where the income actually originates. I want to understand whether there’s a way to avoid being taxed twice on the exact same income, and how this kind of relief would actually work.
Malta has an extensive network of double taxation agreements (DTAs) with numerous countries, and Maltese domestic law under the Income Tax Act, Chapter 123 of the Laws of Malta, also provides for unilateral double taxation relief mechanisms even in situations where no specific bilateral treaty exists with the relevant country, meaning you would generally have some avenue to seek relief from being taxed twice on the same income, though the specific mechanism and extent of relief available depends significantly on whether Malta has a DTA with the specific country involved and the exact terms of that treaty, or otherwise on the applicable unilateral relief provisions. The practical relief typically works either through a tax credit method, where tax already paid in the foreign country is credited against your Maltese tax liability on the same income, or in some cases through an exemption method, where the foreign income is simply excluded from Maltese taxation given it's already been taxed abroad, with the specific applicable method depending on the relevant treaty or domestic relief provision that applies to your particular situation and type of income. Given that correctly claiming double taxation relief requires properly identifying which specific treaty or relief provision applies to your circumstances, and correctly documenting the foreign tax already paid, it would be important to consult a tax advisor experienced in international taxation to ensure you're properly claiming the relief you're entitled to rather than potentially being taxed twice unnecessarily.
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