- Special status grants 4- and 5-star hotels and resorts a 10-year exemption from corporate income tax.
- Law No. 9/2025 postponed the deadline for obtaining status from December 2024 to December 2026.
- The effects of exclusion begin upon the start of the activity, but no later than five years after obtaining status. Previously, this limit was three years.
- The conditions are four- or five-star classification under tourism legislation and a registered, internationally recognized trademark.
Special status grants four- and five-star accommodation structures a 10-year exemption from corporate income tax. With Law No. 9/2025, dated January 30, 2025, The deadline for obtaining this status was postponed from December 2024 to December 2026.
Special status is the status that the tourism legislation grants to “Four- and Five-Star Hotel/Resort” structures affiliated with an internationally recognized trademark. The tax exemption for them is defined in Article 69, paragraph 1, letter “b,” of the Law No. 29/2023 “On Income Tax”.
In August 2026, this rule remains in effect unchanged. For investors planning a structure in this category, 2026 is the year of decision.
Read also: The New Tourism Law. What Changes for Accommodation Facilities and Beach Resorts?
What is special status and who benefits from it?
Special status is granted by the state to high-end accommodation facilities as an instrument for attracting major investments in tourism. It is not automatically obtained by building a good hotel.
The law requires two conditions simultaneously. The structure must be classified as “Four- or Five-Star Hotel/Resort with Special Status” under the applicable tourism legislation. In addition, the entity must hold a registered and internationally recognized brand name trademark.
The detailed investment criteria and application procedure are set by a decision of the Council of Ministers. For these, it is always necessary to verify the official source before applying, as the secondary legislation has been revised several times in recent years.
What was the old rule and what did Law No. 9/2025 change?
The exemption originates from the old Law No. 8438 of December 28, 1998, “On Income Tax.” Upon the entry into force of Law No. 29/2023, it was retained as a transitional provision in its Article 69.
Under the old rule, only those structures that obtained special status by December 2024 benefited. The effects of the exemption had to begin no later than three years after obtaining the status. This rule no longer applies.
Law No. 9/2025 changed both of these deadlines, while the exemption itself remained the same.
| Element | The old rule | Rule in effect |
|---|---|---|
| Deadline for obtaining special status | Until December 2024 | Until December 2026 |
| The onset of exclusion effects | No later than 3 years from the status | No later than 5 years from the date of status |
| Exclusion period | ten years | 10 years, unchanged |
What does the December 2026 deadline mean for investors?
The change brought two practical benefits. First, the window to enter the scheme was extended by two years, so projects that missed the 2024 deadline still have the opportunity. Second, the five-year limit for commencing operations gives investors sufficient time to build and organize the structure without losing the exemption.
On the other hand, the new deadline doesn't wait. Special status must be obtained by December 2026, so the application and documentation need to be prepared this year.
Calculated example. How much is the 10-year exemption worth?
Let's take a five-star resort with a taxable profit of 100,000,000 lek per year. At the standard 15% corporate income tax rate, the annual liability would be 15,000,000 lek.
With special status, this obligation falls to zero for 10 years. Total savings over the period reach 150,000,000 lek, provided that profits remain at the same level. The figures are rounded for illustrative purposes.
What the exclusion does not cover
The exemption applies only to corporate income tax. The structure's other tax obligations continue as normal, from payroll taxes and contributions on employee wages to the fiscalization of invoices. You can find the full summary of obligations by topic at tax legislation.
Even VAT is not exempt, but it enjoys favorable treatment. The accommodation service is taxed at the reduced rate 6%, and for 5-star establishments with special status, the 6% rate applies to every service provided within the establishment.
Large international groups should also take into account a development on the horizon. The 15% global minimum tax for groups with revenues above €750 million could limit the real benefit of the exemption, so the analysis is carried out at the group level.
Read also: Global minimum tax in Albania. Who is affected and what changes in 2026?
Read also: Tax compliance for accommodation facilities and VAT 6%
Every time there is a tax or financial change that affects your business, we notify you directly by email with a practical explanation. Send me free notifications
Frequently asked questions
How long can special status be granted?
Until December 2026. The deadline is set by Article 69, paragraph 1, letter “b” of Law No. 29/2023, as amended by Law No. 9/2025.
How long does the income tax exemption last?
The exemption lasts for 10 years. This period has not changed; it was the same under the old rule.
When do the effects of exclusion begin?
The effects begin at the moment the structure commences its economic activity. They cannot begin later than five years after obtaining the special status.
What happens to the structures that obtained status before 2025?
Their exclusion continues under the conditions under which they obtained it. The amendment to Law No. 9/2025 extended the window for new beneficiaries; it did not affect rights already acquired.
Is a hotel with special status also exempt from VAT?
No, the exemption covers only corporate income tax. Accommodation is taxed at the reduced rate of 6%, and for five-star establishments with special status, the 6% rate applies to every service within the establishment.
Does the new tourism law change the exclusion period?
No. Law No. 83/2026 regulates the categorization and operation of accommodation facilities, while the deadline and conditions for the tax exemption remain in Law No. 29/2023.
