site.btaBulgaria, Andorra Agree on Avoidance of Double Taxation

Bulgarian Deputy Prime Minister and Finance Minister Galab Donev and Andorran Finance Minister Ramon Llados on Friday signed an Agreement on the Avoidance of Double Taxation between their countries here on Friday, Donev's Ministry said in a press release.

"The Agreement will apply with respect to taxes on income and on capital. Its entry into force creates conditions for the effective resolution of tax disputes and for the avoidance of double taxation for individuals and companies, promoting economic activity in this way," the Ministry said.

"The Agreement with Andorra builds on the latest developments in the field of international taxation initiated by the G-20 countries and the Organisation for Economic Co-operation and Development with a view to addressing tax base erosion and profit shifting," the press release said.

The Ministry said that this is the first tax treaty concluded between the two countries. In recent years, cooperation in this area has been pursued mainly by various forms of information exchange based on international legal instruments.

After the signing ceremony, the two finance ministers discussed the identification of appropriate measures to cope with the financial and economic changes caused by global challenges, the press release specified.

For its part, Llados's Ministry said that the Agreement with Bulgaria is the result of contacts and work maintained between both countries' competent authorities in recent years, culminating in technical negotiations carried out during 2026.

The Agreement "strengthens Andorra's network of international tax agreements, enhances legal certainty for economic operators, and contributes to facilitating economic relations and investments between Andorra and Bulgaria, in line with international standards of transparency and tax cooperation," the Andorran Ministry said.