The Bulgaria–Turkey double taxation treaty
A double taxation treaty does not exempt you from tax — it allocates the right to tax between two states so that the same income is not taxed twice. A treaty is in force between Bulgaria and Turkey, and applying it always begins with the same question: which state are you resident in for tax purposes?
Companies and taxes · Last reviewed: 2026-08-23
What the treaty settles, and what it leaves open
The treaty takes each category of income separately and says which state may tax it: for some categories only the state of residence, for others the source state as well, but with a ceiling. The practical result is usually one tax instead of two. What the treaty does not remove is the filing duty — you may still have to file in both states even where tax is due only in one.
Residence comes first
Tax residence is not citizenship and is not proven by an address registration. Each state applies its own domestic definition first; where both claim you, the treaty runs through a sequence of tie-breakers — permanent home, centre of vital interests, habitual abode and finally nationality. The assessment is individual, and an assumption borrowed from someone else's case is the most common way people end up with a retrospective correction.
Categories are treated one by one
- Employment income — where the work is physically performed and where the employer sits both matter.
- Business profits — the question is whether a permanent establishment arises in the other state.
- Rental income — the state where the property is located generally keeps its taxing right.
- Dividends, interest and royalties — a capped source-state tax is typically allowed.
- Pensions — public and private pensions sit in different provisions and do not always lead to the same answer.
How relief is actually claimed
Obtain a certificate of tax residence
In Bulgaria this is issued by the National Revenue Agency; in Turkey by the revenue administration. A payer abroad will not apply the treaty rate before seeing it.Give it to the payer in advance
Relief is normally applied at the moment of payment. A certificate produced afterwards leaves only the slower refund route.Report the foreign tax in your annual return
Tax paid in the other state is taken into account by the method the treaty prescribes — credit or exemption. The two methods do not give the same figure.Keep the evidence
Without proof of the tax withheld abroad, no credit is granted. Keep payment records and the certificates issued by the foreign administration together.
No rates or article numbers here
This is not legal or financial advice
Frequently asked questions
I work remotely from Bulgaria for a Turkish employer — where is the tax due?
The starting point is that employment income is taxable where the work is physically performed, so remote work from Bulgaria points to Bulgaria. Whether the employer also creates obligations there is a separate question that depends on the arrangement, not on the invoice address.
Does the treaty cover social security contributions?
No. Tax treaties deal with taxes on income, not with social security. Contributions are governed by separate bilateral social security instruments and by the rules of each system.
Can I simply pay in one country and ignore the other?
Not safely. Even where the treaty leaves taxing rights to one state, the other may still require a return that shows the income and the relief claimed. Silence is what turns a solved case into an audit.
Sources
The information on this page is based on the official sources listed below. Legislation changes — open the links and verify the current position.
- Национална агенция за приходите (НАП) — https://nra.bg/ · 2026-08-23
- T.C. Hazine ve Maliye Bakanlığı — Gelir İdaresi Başkanlığı — https://www.gib.gov.tr/ · 2026-08-23
- Правно-информационна система „Лекс“ — официални текстове на законите — https://www.lex.bg/ · 2026-08-23
- Your Europe — данъци при живот и работа в друга държава — https://europa.eu/youreurope/citizens/ · 2026-08-23
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