Albania
Albania is a growing economy on the Adriatic coast with simplified tax rules, EU candidate status, and increasing foreign direct investment across services, energy, and tourism. Ongoing reforms continue to align the regulatory framework with EU standards.
jurisdiction.fiscalFramework
jurisdiction.taxSystem
jurisdiction.corporateIncomeTax
15%
jurisdiction.valueAddedTax
20% (6% reduced)
jurisdiction.keyFeatures
- Standard 15% corporate income tax rate
- Reduced rates for small businesses and qualifying IT companies
- Tax incentives in priority sectors and free zones
- Withholding tax on dividends, interest, and royalties
- Loss carry-forward for 5 years
jurisdiction.treatyNetwork Albania has double tax treaties with more than 40 countries, including major European economies and key regional partners.
jurisdiction.workforce
jurisdiction.employment
Albanian labor law provides a flexible framework for employment relationships, with a young, multilingual workforce and competitive labor costs across services, manufacturing, and outsourcing.
jurisdiction.socialContributions Total employer social and health contributions approximately 16.7% of gross salary, with employee contributions around 11.2%.
jurisdiction.keyRequirements
- Written employment contracts mandatory
- National minimum wage set by government
- Standard working week of 40 hours
- Minimum 20 working days annual leave
- Termination subject to Labor Code procedures
jurisdiction.establishingPresence
jurisdiction.companyFormation
jurisdiction.entityTypes
- Sh.p.k. (Limited Liability Company)
- Sh.a. (Joint Stock Company)
- Branch Office
- Representative Office
jurisdiction.typicalTimeline
1-2 weeks
jurisdiction.capitalRequirements
Sh.p.k.: ALL 100 minimum share capital; Sh.a.: ALL 2,000,000 (private) / ALL 10,000,000 (public).
jurisdiction.compliance
jurisdiction.regulatoryEnvironment
jurisdiction.keyRegulators
- General Directorate of Taxation
- NBC (National Business Center)
- AFSA (Financial Supervisory Authority)
- Bank of Albania
jurisdiction.complianceNotes
- Regulatory framework progressively aligned with EU acquis
- E-invoicing (fiscalization) mandatory for VAT taxpayers
- Transfer pricing rules for related-party transactions
- GDPR-aligned data protection regime
jurisdiction.localExpertise
jurisdiction.ourPresenceIn Albania
We support clients in Albania through our regional network and trusted local partners, delivering coordinated tax, accounting, and advisory services aligned with our core jurisdictions.
jurisdiction.otherJurisdictions
common.getStarted
jurisdiction.ctaTitlePrefix Albania jurisdiction.ctaTitleSuffix
jurisdiction.ctaDescPrefix Albania.
common.contactUs