In line with internationally agreed standards, Malta’s finance minister Edward Scicluna and his counterpart from Caraçuo Jose Jardim said that the agreement will provide for the exchange of tax information and increase transparency between the two jurisdictions.
Both Malta and Caraçuo offer appealing tax rates for wealthy individuals and businesses, earning both countries the status of tax haven in the eyes of many.
The agreement is based largely on the OECD model and includes provisions catering for “certain domestic taxation laws of both sides”.
Scicluna said: “Although the two islands are far away from each other, businesses, persons and companies use financial centres in every corner of the globe, so through this agreement we are also promoting financial business between us.”
Both Malta and Caraçuo have a wide network of double taxation treaties spanning jurisdictions across Europe, Asia and the Americas, including with the UK, the US and other countries well known for their attractive tax architecture, such as Luxembourg.
