Last Updated on October 22, 2023 by Bulgarian attorney

How to avoid double taxation

Bulgaria double taxation treaties

Avoiding double taxation is the practice of ensuring that the same income or assets are not subject to taxation in two separate jurisdictions. It’s important to note that even if a valid double taxation treaty exists between Bulgaria and your home country, it doesn’t automatically guarantee that you won’t face additional taxation in your home country on income that has already been taxed in Bulgaria.

For instance, in the case of the double taxation treaty between Bulgaria and Italy, Italian citizens who earn income in Bulgaria may need to hold dual citizenship (with Bulgaria as their second citizenship) in order to fully benefit from Bulgaria’s favourable tax rates.

For more information or legal advice on matters relating to Double Taxation and How to avoid Double taxation please do not hesitate to contact us.

Bulgaria Double Taxation Treaties

Bulgaria has signed double taxation treaties with more than70 countries in order to avoid double taxation for foreign investors. This measure offers tax relief for natural and legal persons operating in multiple countries. Along with the double tax treaties, Bulgaria also signed exchange of information protocols in order to have a clear image of the legal entities requesting double taxation relief.

Bulgaria Double Taxation treaties

As of October 2023, Bulgaria has signed double taxation treaties (DTTs) with the following European countries:

  1. Albania
  2. Austria
  3. Belarus
  4. Belgium
  5. Croatia
  6. Cyprus
  7. Czech Republic
  8. Denmark
  9. Estonia
  10. Finland
  11. France
  12. Germany
  13. Greece
  14. Hungary
  15. Ireland
  16. Italy
  17. Latvia
  18. Lithuania
  19. Luxembourg
  20. Malta
  21. Moldova
  22. Montenegro
  23. Netherlands
  24. North Macedonia
  25. Norway
  26. Poland
  27. Portugal
  28. Romania
  29. Russia
  30. Serbia
  31. Slovakia
  32. Slovenia
  33. Spain
  34. Sweden
  35. Switzerland
  36. Turkey
  37. Ukraine
  38. United Kingdom

Middle Eastern countries that have signed double taxation treaties with Bulgaria:

  1. Bahrain
  2. Egypt
  3. Iran
  4. Israel
  5. Jordan
  6. Kuwait
  7. Lebanon
  8. Qatar
  9. Saudi Arabia
  10. Syria
  11. United Arab Emirates

African countries that have signed double taxation treaties with Bulgaria:

  1. Algeria
  2. Egypt
  3. Morocco
  4. South Africa

Asian countries that have signed double taxation treaties with Bulgaria:

  1. Armenia
  2. Azerbaijan
  3. China
  4. Georgia
  5. India
  6. Indonesia
  7. Japan
  8. Kazakhstan
  9. Korea
  10. Mongolia
  11. North Korea
  12. Pakistan
  13. Singapore
  14. Thailand
  15. Uzbekistan
  16. Vietnam

If you need help understanding the benefits of becoming a tax resident in Bulgaria or want to learn more about the double taxation treaty between Bulgaria and your home country, please contact us. Our team of experienced professionals can guide you through the complexities of tax residency and double taxation agreements, and assist you in making informed decisions about your financial situation.

Disclaimer: While Bulgaria’s tax residency can offer many benefits, such as low tax rates and access to the European Union market, it’s important to consider individual circumstances before making a decision. Factors such as income level, investment portfolio, and business operations can all impact the advantages and drawbacks of obtaining Bulgarian tax residency. Consulting with a professional can help you determine whether or not it’s the right choice for you.

The entire list of signatory countries can be found on the website of National Revenue Agency.