The Council of Ministers on Wednesday approved substantial amendments to the draft Agreement between the Republic of Bulgaria and the Principality of Andorra for the Avoidance of Double Taxation, which had previously been approved as the basis for negotiations. Under the same decision, the Government authorized the Deputy Prime Minister and the Finance Minister to sign the agreement on behalf of Bulgaria, subject to subsequent ratification, the Council of Ministers said in a press release.
The initial draft agreement was approved by the Council of Ministers on October 29, 2025, as the basis for negotiations. Following talks between the two countries in March 2026, several changes were introduced to produce a mutually agreed draft text. During the negotiations, the two sides aligned their positions and established a set of consensus-based provisions.
Under Article 11(2) of the International Treaties of the Republic of Bulgaria Act, the agreed changes constitute a substantial deviation from the original draft international agreement. As a result, the revised text required renewed approval by the Council of Ministers.
No tax treaty has previously been concluded between Bulgaria and Andorra. In recent years, bilateral cooperation in the field of taxation has developed primarily through various mechanisms for the exchange of information under international legal instruments.
Over the past several years, the Principality of Andorra has actively expanded its network of tax treaties and has also expressed interest in concluding such an agreement with Bulgaria.
/DS/