- Cryptocurrencies in Albania are not illegal, because Law No. 66/2020 has been in effect since September 2020, but no license has been issued.
- Gain from the sale of virtual assets is taxed at 15% as capital gain and reported by the individual.
- The cost of purchase must be documented; otherwise, the entire sale proceeds are treated as profit.
- Mining and accepting payments in crypto are activities treated differently from personal investment.
- A draft bill under consultation provides for the automatic reporting of holders by platforms.
Cryptocurrencies are digital assets that use blockchain technology to verify and record transactions without a central bank issuing them. In Albanian tax legislation, they fall under the term "virtual assets," and it is precisely this term that determines how they are taxed.
The question we hear most often isn't how blockchain works. It's whether gains need to be reported, how much tax is payable, and what happens when purchase documents are missing. This article follows that order as well.
Read also: The crypto-asset market, the benefits, the risks, and why it is being regulated in Albania as well.
How cryptocurrencies are created and how they work
Mining and proof of work
Cryptocurrencies like Bitcoin are created through mining, a process that uses computational power to solve complex mathematical problems. The computer that solves it first records the new block of transactions and is rewarded with new coins.
This mechanism consumes a lot of energy, and it is precisely the cost of energy that determines whether mining is economically viable in a given location.
Proof of stake
Other networks use the proof-of-stake mechanism, where the right to verify transactions is not earned through computational power but by the amount of coins a user holds staked. Energy consumption drops significantly, while the reward takes the form of periodic returns.
This distinction has practical tax consequences. The periodic return from holding currencies is a separate income, distinct from the gain realized when the currency is sold.
Where are the keys kept and who holds them?
Cryptocurrencies aren't physically stored anywhere; what's stored is the key that lets you move them. When the platform where you have an account holds the key, you trust it. When you hold it yourself, in a separate wallet, the responsibility and risk are yours.
This distinction is not technical. Losing a key means the permanent loss of access, with no institution to restore it, unlike a bank account password.
The main types and why they differ from each other
The term "cryptocurrency" is used for everything, but the categories differ in both risk and accounting treatment.
| Type | What is it? | What you need to know |
|---|---|---|
| Bitcoin | The first cryptocurrency, with a limited supply. | Price volatility remains high regardless of the market's age. |
| Alternative cryptocurrency | Every other cryptocurrency, thousands in number. | Most lose value or disappear. Liquidity is the first problem. |
| Stablecoin | A currency pegged to another currency, usually the dollar. | Sustainability depends on the issuer's reserves, not on a government guarantee. |
| Service token | A unit that grants access to a platform or service. | Value depends on the actual use of the platform, not on the market. |
| Non-Fungible Token | A unique unit that represents a digital object. | The market is thin; selling at the purchase price is often not an option. |
Are cryptocurrencies legal in Albania?
Possession and personal use are not prohibited. Albania also has a special law., Law No. 66/2020 on financial markets based on distributed ledger technology, in effect since September 2020 and among the first of its kind in the region.
The problem lies in enforcement. So far, no license has been issued to service providers, so the market is effectively operating without any domestic oversight. Financial Supervisory Authority has publicly stated that trading cryptocurrencies without a license is illegal.
It is precisely this gap that has made a new draft law, harmonized with the European MiCA regulation, necessary, which provides rules for issuance, authorization of providers, and investor protection. Our article on the crypto-asset market covers its contents.
For the user, the practical conclusion is the same. The absence of local licenses means that your legal protection depends on the country where the platform is registered, not on Albania.
How are cryptocurrency income taxed?
This is the part that is most often ignored and that costs the most. Cryptocurrency income is not exempt from tax, and the treatment varies depending on how it was earned.
The individual who sells at a profit
Gain from the sale of virtual assets is taxed at 15% as capital gain, just like the sale of securities or real estate. The taxable basis is the difference between the sale price and the purchase cost.
The declaration is made by the individual himself, to Annual individual declaration that is filed by March 31 of the following year. No platform withholds the tax for you.
Mining and engagement rewards
Mining is not an investment; it is an activity. When carried out in an organized and continuous manner, with equipment and energy, it is treated as an economic activity and requires registration, with all the obligations that follow. Law No. 29/2023.
The same distinction applies to periodic rewards from coin staking. They are income at the moment they are received, separate from the gain that arises later when the coin is sold.
Business that accepts payments in crypto
When a business accepts payment in cryptocurrency, the sale remains a sale and is invoiced normally in lek according to the day's exchange rate. The virtual asset is then recorded as a company asset, and any fluctuations until it is converted affect the financial results.
This is precisely the case where the accounting must be prepared in advance, because delayed recording makes it impossible to reconstruct the exact amount of each transaction.
Calculated example
An individual buys virtual assets for 1,000,000 lek and sells them two years later for 1,600,000 lek. The profit is 600,000 lek and the tax is 15%, so 90,000 lek.
Now the same case without the purchase document. The cost cannot be proven, so the entire sale price of 1,600,000 lek is treated as profit, and the tax amounts to 240,000 lek. The absence of a document costs 150,000 lek.
Documents you need to keep
The rule that changes everything is this: the cost of purchase must be proven with documentation, and when it isn't, the entire sale proceeds are treated as profit. Therefore, documentation isn't a formality; it's half of your tax obligation.
From day one, keep four things. The confirmation of each purchase, with date, quantity, and price. The bank or card statement showing the funds transfer to the platform. The transaction history downloaded from the platform itself, in the format it provides. And the confirmation of each sale along with the funds' arrival in the account.
Be careful with currency exchanges. Transfers from one cryptocurrency to another often don't go through your bank account at all, so they remain untraceable in your regular records and must be specifically withdrawn from the platform. You can find the documentation retention rules on our website. financial security.
If the platform shuts down or you lose access, the history is lost with it. Downloading it periodically, once a year, is the cheapest thing you can do for yourself.
Real dangers and scams
The first risk is volatility. The value can drop sharply within days, so only funds that can afford to lose without derailing the financial plan are committed.
The second risk is the lack of domestic protection. Without licenses in Albania, there is no local authority to complain to, and there is no compensation scheme like that for bank deposits.
The third risk is scams, which always display the same three signs: the promise of guaranteed profit, the request to deposit just a little more to allow a withdrawal, and the pressure to act quickly. When all three appear together, no further verification is needed.
Before you deposit, check three things that remain the same regardless of which platform is in vogue: whether it's licensed in a European Union country, whether a small test withdrawal works before you increase the amount, and who holds the keys.
What comes next?
In July 2026, a draft law on the automatic exchange of information on crypto assets was released for public consultation. If approved, platforms will report holders' data to tax authorities, just as is being envisaged for Digital sales platforms. It is not yet in effect.
The practical meaning is simple. The regular declaration now costs little, whereas rebuilding a multi-year history after automatic reporting costs a lot, especially when purchase documents are missing and come into play. Fines and late fees.
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 notificationsFrequently asked questions
Is there a law on cryptocurrencies in Albania?
Yes. Law No. 66/2020 on financial markets based on distributed ledger technology has been in force since September 2020. What is missing is implementation, as no licenses have been issued.
How much tax is levied on the profit from selling cryptocurrencies?
15% on the difference between the sale price and the purchase cost, as capital gain. It is reported by the individual on the annual individual tax return.
What happens if I don't have proof of purchase?
The entire sale proceeds are treated as profit and taxed at 15%. In our example, this quadruples the tax from 90,000 to 240,000 lek.
Are mines taxed the same way as investment?
No. Organized mining is an economic activity and requires registration, while selling purchased coins is capital gains.
Can I accept crypto payments for my business?
The sale is invoiced in lek according to the daily exchange rate. The virtual asset is then recorded as an asset, so the accounting treatment is prepared before the first transaction, not afterward.
Will cryptocurrencies be reported to the tax authorities?
A draft bill in public consultation during 2026 provides for automatic reporting by platforms. It has not yet been adopted and there is no such obligation today.
How do I recognize a cryptocurrency scam?
From the promise of guaranteed profit, the requirement to deposit more in order to allow a withdrawal, and the pressure to act quickly.
