And without legal obstacles. Albania does not impose restrictions on foreign citizens who want to open a business. You can register as a natural person, that is, as self-employed, just like any Albanian citizen. The only thing you need for registration is a valid identity document, your passport or ID card.
Before you register, it's worth pausing for a moment to consider the form, as the consequences are different.
When you register as a sole proprietor, you and the business are the same thing in the eyes of the law. The business's annual profit is calculated as your personal income and taxed as such. Registration is quick and free, but the downside is that you are personally liable with your own assets for business debts.
When you register as an LLC, the business is a separate legal entity. The company pays tax on its profits, and when you withdraw the money as dividends, an 8% tax is also withheld. In return, your liability is limited to the company's capital and your personal assets remain protected.
As a simple rule, for a small sole proprietorship, it is sufficient and easier. For a larger business, with risk, or with several partners, an LLC is usually chosen.
Read also: Should I register as a sole proprietor or as a company?
Registration is done online, on the e-Albania portal, it is free and the NIPT is issued within one working day. But to apply, you need an active e-Albania account and an electronic signature, and this is precisely where the first obstacle for a foreigner arises, because they usually do not have both.
The practical solution is a power of attorney. You give a special power of attorney to a person located in Albania, for example your accountant or lawyer, who has an active account on e-Albania and an electronic signature, and they carry out the registration in your name. Together with the power of attorney, a copy of your identity document is also deposited. This way, you do not need to come in person, nor do you need to obtain an electronic signature.
You will sign the Power of Attorney, which is in Albanian, at a Notary in Albania. This is according to Albanian law. To understand what you are signing, the presence of a Licensed Translator is required, who will translate this document verbally or in writing in your presence. The Notary is usually the one who also finds the Translator.
Download sample of Special Public Prosecutor's Office.
The easiest way is for this power of attorney to be signed at a notary in Albania.
If you are abroad, you can also issue the power of attorney there, but then it must be affixed with an apostille, according to the Hague Convention, and then translated into Albanian and notarized here. Only then will it be valid for use in Albania. For countries that are not part of the Hague Convention, consular legalization is performed instead of an apostille.
Read also: How Foreigners Start a Business, Work, and Remain Legally in Albania
As a natural person, your annual profit is your income and you pay tax on it. The tax on profit is 0% if annual turnover is up to 14,000,000 lekë, and this rate applies until December 31, 2029. Above this threshold, the tax is 15%. In addition, every registered business is required to be fiscally compliant, meaning that every sales invoice is issued electronically.
It's worth knowing another rule that often affects the self-employed. If 80% or more of your income comes from a single client, or 90% or more from fewer than three clients, the tax administration may treat that income as wages rather than business income. This provision is found in Article 12, paragraph "c" of Law No. 29/2023.
This rule has a significant exception for foreigners. It does not apply if you only serve non-resident clients, or only entities that do not have a permanent establishment in Albania. In this case, the income remains business income. So, if you work from Albania for clients abroad, this reclassification does not affect you.
Registration incurs a fixed cost, mainly for accounting services, which is paid monthly regardless of your earnings. However, in return, you gain several benefits that often exceed this cost.
First, the profit tax is 0% on up to 14,000,000 lek in annual turnover, until December 31, 2029. So you don't pay profit tax on the vast majority of your profit.
Secondly, as an individual you don't pay any dividend tax on 8%. That tax is only withheld when a company, such as an LLC, distributes its profit to its partners. An individual doesn't have that step, so they avoid it entirely.
Third, if annual turnover is up to 10,000,000 lekë, the law allows you to choose a simplified regime, where a portion of income is automatically recognized as expense, without needing to document each item individually. For self-employed individuals, this portion is 30%.
The main cost is the monthly accounting service, while the benefits are the very low tax and legal protection. For most self-employed foreigners with stable income, registration is clearly advantageous. You can find the actual cost of the service on the pricing page: /cmimi/
Tax residency, don't confuse it with residency permit
Many foreigners confuse the two, so it's worth clarifying. A residency permit indicates where you legally live. Tax residency indicates where your income is taxed. According to Article 8 of Law 29/2023, you become a tax resident of Albania if you stay 183 days or more within a year, or if your center of life is here. As a tax resident, Albania taxes you on income earned anywhere, not just from your business here. If you are not a tax resident, you are only taxed on income sourced in Albania.
Registering a business is one thing, the right to live and work in Albania is another. For stays up to 90 days within 180 days, you do not need a residence permit. But if you want to stay longer and carry out your activity yourself, you need a residence permit. The single permit combines residence and work in a single document. The application is made at the local border and immigration office, and the response is given within 4 to 12 weeks. All of this is regulated by Law 79/2021 on foreigners.
Read also: Foreigners in Albania: New 2026 Rules, 0% Tax, and Fiscal Residence
When you register an NIPT (National Interoperability and Public Services Platform) entity, you are automatically registered with the tax administration, social and health security, and the Labor Inspectorate. Then, there are a few practical steps remaining. Open a business bank account, activate fiscalization according to the nature of your activity, and if your sector requires it, obtain the relevant license or permit, which you can check in the License Register on the QKB (National Business Center) website. A company stamp is no longer legally required, but in practice, it is often useful.
If you are a natural person, you do not enter the Beneficial Owners Register, because it only applies to legal persons, such as companies, foreign branches, and NGOs.
As long as you give a special power of attorney to someone here who handles the registration for you, you won't need an electronic signature or your presence.
For registration in QKB, an identification document is sufficient. But if you want to stay and work in Albania for more than 90 days, you need a residence permit.
Yes. The register applies to companies, foreign branches, and NGOs, not to individuals.
0% if annual turnover is up to 14,000,000 lekë, until December 31, 2029. Above this threshold, 15%.