Kyrgyzstan and Romania have agreed on a double taxation avoidance agreement

Negotiations between delegations from Kyrgyzstan and Romania on the conclusion of an agreement on the elimination of double taxation and the prevention of tax evasion took place in Bucharest from 23 to 26 February 2026.

The parties have agreed in principle on the text of the document, which will be signed after the completion of internal procedures.

The agreement aims to eliminate situations where the income of companies and individuals is taxed simultaneously in both countries. For businesses, this creates a more predictable tax burden for cross-border transactions.

The document provides for key mechanisms:

• protection of residents of one country from discriminatory taxation in the territory of the other;
• prevention of tax evasion and abuse of the provisions of the agreement;
• expansion of information exchange between the tax authorities of the two countries.

Such agreements in global practice contribute to attracting foreign direct investment. For Kyrgyzstan, this increases the attractiveness of the jurisdiction for investors working with the European market, and for Romania, it simplifies the tax regime for companies operating in Central Asia.

Once signed and ratified, the agreement will become part of the bilateral treaty base and will apply to the income of residents of both countries within the framework of economic cooperation.