Today it has become much easier for businesses to expand their activity abroad. Lower costs, tax incentives, and simplified registration procedures have made Albania an attractive destination for foreign investors as well. Below, we explain step by step how a foreign business is registered in Albania – the possible forms of registration, the required documents, the steps after registration, and some practical tips to guide you through this process.
Legal forms of presence for a foreign business
A foreign investor can conduct business in Albania through several main legal forms: as a natural person (small business in a personal name), as a branch or representative office of an existing foreign company, or by establishing a new company registered in Albania (e.g., a limited liability company – LLC), where partner (shareholder) can be the foreign company itself. Below we explain each of these forms and the differences between them.
New Albanian company (Sh.p.k. with a foreign partner)
This implies the establishment of an Albanian commercial company with a separate legal personality. The company may be 100% owned by the foreign company or set up in partnership with other investors (foreign or local). The main advantage is that an **LLC (sh.p.k.) provides limited liability** – the parent company is not liable with its own assets for the obligations of the company in Albania, but risks only the invested capital. This structure creates a clear separation between the Albanian business and the foreign company, which can be beneficial for managerial, legal, and financial purposes.
From a tax perspective, an Albanian Sh.p.k. is treated as a domestic entity: net profit is generally taxed at 15% corporate income tax, and if this profit is distributed to partners (e.g., the foreign company) as a dividend, an additional 8% dividend tax applies on the distributed amount. This double taxation (profit + dividend) can be reduced or eliminated if there is a double taxation avoidance agreement between Albania and the foreign company’s country (see below). It should be noted that small businesses (with annual turnover up to ALL 14 million) currently benefit from 0% corporate income tax until 2029, which means a small Sh.p.k. may operate without paying profit tax until this threshold is exceeded.
The new company offers flexibility and operational independence, the ability to have different partners, and limits legal and financial risk to its capital. At high profit levels, the effective tax rate may be lower than that of an individual. Forming a company requires preparing the founding documentation (articles of incorporation, bylaws) and following registration procedures, as well as fulfilling periodic accounting and tax obligations like any domestic company.
Branch of a foreign company
A “branch” is an extension of the foreign company itself, registered in Albania to conduct economic activity. The branch does not have separate legal personality from the parent company – it is considered part of the same company. This means the foreign company bears full liability for the branch’s activity and obligations in Albania. The branch is registered with the NRC (National Business Center – QKB) under its name (usually the same as or similar to that of the parent company) and may carry out the same scope of activity as the parent company within the territory of Albania. The branch may be established for an indefinite or a defined period, depending on the parent company’s decision.
A branch allows a foreign company to begin operations in Albania without creating a new legal entity – the organizational structure and ownership remain the same. Transferring funds (profits) from the branch to the parent company is straightforward and is usually not treated as a dividend, so it may not be subject to dividend tax (the branch's profits are taxed only as corporate income, at Albania's corporate tax rates).
From a legal and financial standpoint, the foreign company is directly responsible for the obligations the branch undertakes. Also, registering a branch requires additional documents from the parent company, such as the foreign company's registration certificate and a document proving its active status. (not in liquidation/bankruptcy), which must be obtained from the relevant authorities in the company's country of origin. Likewise, opening a branch usually requires the official decision of the competent body of the parent company to establish the branch in Albania. A branch, unlike a new company, does not offer any separation of liabilities – any financial or legal problem of the branch is directly reflected on the parent company.
Representative office
The representative office is the most basic presence of a foreign company in Albania. It does not have trading status and is not allowed to carry out profit-making economic activities – that is, it cannot issue invoices or generate revenue. Its role is limited to activities such as market research, advertising, marketing, coordination, or representing the interests of the foreign company (e.g., as a liaison office). Foreign companies often open representative offices when they simply want to have a physical presence for marketing purposes or to study the Albanian market without yet starting commercial operations.
The registration procedure and documentary requirements for a representative office are similar to those for a branch (documentation on the existence of the foreign company, its status, etc., is required), but the representative office has fewer post-registration obligations since it does not pay corporate tax (as it does not generate income) and is not subject to VAT schemes, etc. Since the representative office cannot generate revenue, the parent company must continuously finance it for its expenses. This form of entity makes sense only when the planned activity does not involve sales or paid services within Albania.
A foreign investor can also register as a natural person (self-employed) in Albania, especially if the activity is small. The basic procedure is similar to that for an Albanian citizen, but keep in mind that to carry out the activity himself within the country, a non-resident foreigner will need a residence/work permit (see below for the Unique Permit). It is often recommended that a foreigner authorize another person (e.g., a local collaborator) to register the activity as a sole proprietor in his name, to facilitate the procedures.
Required documents and their form
Regardless of the chosen form, registration of a business (whether a new company, branch, or representative office) is carried out with the National Business Center (QKB) through an electronic application. During the application, a number of supporting documents must be uploaded. The main ones are:
Documents originating from the foreign company (if the foreign company will be a partner in the new company, or if the entity is registered as a Branch of the foreign company or a Representative Office)
This includes the certificate of registration of the foreign company in the country where it was established, as well as a current certificate stating that the company is not in liquidation or bankruptcy proceedings (and has not been deregistered). These documents are usually issued by the competent trade or judicial authorities of the foreign state. Additionally, when the parent company is a partner in the new Albanian company, the foreign company's founding act and statute, or its equivalent formation document, must be submitted, along with any subsequent amendments. For a branch, the decision of the foreign company's governing body to open the branch in Albania is also required, while for a representative office, the decision to open the representative office is required.
If the partner/owner of the company to be registered in Albania is not a company registered in a foreign state but an individual foreign citizen, then the procedure is the same as if the partner were an Albanian citizen.
Documents of the new Albanian company (if the chosen form is establishment of a company)
The founding act and the statutes of the new company are required (if these are drafted as separate documents). In practice, many founders choose to draft the articles of incorporation and the bylaws in a single document, which streamlines the formalities. These documents set out all of the company's basic information (the contents of the bylaws are detailed below). For joint-stock companies the requirements are somewhat more extensive, including, for example, the nominal value and number of shares, the supervisory board's details, etc., but in the case of small investors the LLC form is usually chosen.
If you register a natural person, a Branch of a Foreign Company, or a Representative Office, a Statute/Articles of Incorporation will not be prepared. If you decide to open a natural person, the online application form is sufficient. If you register a Branch or a Representative Office, the statute is replaced by a Decision of the body that has this right in the foreign company. Usually the General Meeting of Partners, but in some cases also the Administrator of the foreign company.
Identification data and documents of key persons
The legal representative of the entity being registered must present an identification document (e.g., passport) – this is usually the administrator of the new company or the appointed head of the branch/representative office. Also, the partners' identification documents are required (if they are not included in the above documents). If the application is made by an authorized person (not the administrator or partner themselves), a Power of Attorney authorizing that person is required, as well as the applicant's own identification document.
Other specific documents
In the case of a branch of a foreign company, if the foreign company has been operating for more than one year, the balance sheet (financial statements) of the foreign company's most recent year must be filed. For public limited companies with a private offering (sh.a.), a document from the bank confirming payment of the cash contribution to capital (at least 25% of the capital must be paid before registration) is also required, as well as an appraisal of in-kind contributions (if any) by an independent expert. In any case, the QKB may request additional documentation depending on the specifics of the application, but the above are the most common.
Any official or private document issued by a foreign authority (e.g., certificates, certificates of verification, notarial acts abroad) must be legalized or bear an apostille seal in order to be recognized in Albania. This means that, after the document is issued by the foreign institution, you must submit it to the relevant office (e.g., the Ministry of Foreign Affairs or the competent consular office) in the country of origin in order to obtain an Apostille (under the Hague Convention) or a classic consular legalization. the Ministry of Foreign Affairs or the competent consular office) in the country of origin to obtain an Apostille (under the Hague Convention) or a traditional consular legalization, which certifies the document's validity. Additionally, documents in a foreign language must be translated into Albanian by licensed translators and notarized before submission.
Articles of Incorporation and Statute: What should they contain?
The Articles of Incorporation is the document that formalizes the partners' agreement to establish the new company (it does not apply to branches or representative offices). The company's bylaws set out its rules of operation. As mentioned, for LLCs these two documents may also be combined into a single one. Albanian law (Law No. 9901/2008 “For merchants and commercial companies”) defines several mandatory elements that must be included. Here are the main points that must not be missing from the content of the memorandum/articles of association of an LLC:
Company name
It must be a unique name, different from existing entities in the register. It is recommended to choose a meaningful name reflecting the nature of the business. For limited liability companies, the suffix “sh.p.k.” is usually added. Check in advance that the desired name is available – you can search online on the QKB portal for similar names. Only after you receive final approval of registration from QKB is the name considered reserved for you; the preliminary check is indicative and is not sufficient to “block” a name without registering the business.
Registered seat (address) of the company
The physical address of the business's headquarters in Albania. In the initial phase, it is sufficient to declare this without needing to submit a lease agreement or proof of ownership for the premises. All that's required is an address where the activity will be carried out (it can even be your home for very small businesses, e.g., a freelancer).
Scope of activity
Description of the economic activity that the company will carry out. It is recommended to formulate the objective briefly and clearly – ideally in one sentence or a few phrases – mentioning the main field (e.g. “IT consulting services,” “manufacture of plastic products,” “wholesale of building materials,” etc.). An overly long and complicated description can lose focus and create ambiguity about the field in which the business operates.
Partner data
The full name of each partner (natural or legal person), father's name, date of birth/identification number (e.g., NUIS for legal persons, personal number for individuals), as well as their place of residence. For legal partners (companies), their registration details in their country of incorporation are also included. Additionally, each partner's share in the capital must be declared (percentage or number of shares – see the next point).
Share capital and division into quotas
Limited liability companies can have even a purely nominal share capital – the law requires at least 100 lek in capital, so in practice this is not an obstacle (however, a slightly higher capital is recommended, e.g. a few hundred thousand lek, depending on needs, to give the company a sense of seriousness, although legally even 100 lek is sufficient).
We recommend starting with modest capital; you can increase it later as needed, while excess initial capital may have no practical effect other than complicating management. Capital is divided into shares (for an LLC). The allocation of capital is done by specifying the number of shares each partner owns, regardless of the percentage.
For example, it may be decided that one partner (A) and the other (B) each have 1 share, even though their contributions are different – e.g. A contributes 10% of capital, B contributes 90%. In this case, the nominal value of A's share will be 10% of capital, while B's will be 90%.
The statute must clearly indicate the number of quotas, the nominal value of each quota, and how many quotas each partner holds. It is also declared whether the initial capital has been paid or not (e.g., typically stated that it will be paid within 30–90 days from establishment into the company’s bank account).
Administrators and legal representatives
The name of the company's administrator (or administrators), their details (ID, address), and the term of appointment. Note: by law, an administrator may be appointed for a term no longer than five years (with the right to reappointment thereafter). Therefore, the statute must specify, for example, “the administrator is appointed for a 5-year term.” The powers of representation must also be defined, i.e., whether the administrator represents the company without limitations or is subject to restrictions (e.g., the signatures of two administrators are required jointly to carry out transactions over a certain amount, etc., if there are two or more). Usually, for simplicity, new single-director companies grant him unlimited representation rights. The articles of association also include specimen signatures of the persons representing the company – these are provided in the form of a signed declaration (usually standard forms are completed when applying online).
Duration of the company
If the company is established for a defined period (e.g., 10 years), this must be stated. In the absence of such a clause, it is understood to be of indefinite duration. pa afat.
Other additional data depending on the case
For example, if there will be a supervisory board (primarily in public limited companies), the method of transferring shares to third parties, the procedure for convening the shareholders' assembly, etc. For typical small and medium-sized businesses, these are usually handled with standard legal provisions.
If you don't have experience drafting these documents, you can use template formats for the founding act and the statute. AlProfit Consult offers some free templates that you can use. download and adapt: e.g., “Articles of Incorporation LLC (multiple members)” and “Bylaws LLC (multiple members)”. These can help you as a starting point to understand what the bylaws of a company typically provide.
Online registration step by step at QKB
Since 2020, business registration is done exclusively online through the e-Albania government portal – the QKB's physical offices no longer process paper applications. Therefore, as a first step, create a business account on e-Albania. First, you must have a personal account as an individual on e-Albania (if you don't, register as a citizen). Then, after you register the business, your business account will be created. Do not confuse your personal account with your business account – they are separate. If you are a natural person (sole proprietor), your personal account is used to manage business services; if you are a legal entity (LLC), once you obtain your NIPT you can register the electronic business account.
The main steps of the electronic application for initial registration are:
Completing the electronic form
For the relevant type of entity in e-Albania. For example, search for the service “Application for initial registration of a natural person” or “...of an Sh.p.k. company” in the Electronic Services section. You will need to provide the required information (the details mentioned above such as name, scope, addresses, partners, administrator, etc. – the electronic form has specific fields for each).
Uploading supporting documents (scanned, in PDF) (scanned, in PDF)
Make sure you have all the documents prepared according to the list – if anything is missing, the application will not be accepted. Documents from abroad must be apostilled and translated, as explained above. Also, the power of attorney (if you are registering on behalf of someone else) must be scanned. At this stage, the legal representative's signature specimens and his identification document are also uploaded.
Under no circumstances should documents that will be published in the commercial register be uploaded when they contain confidential data. For example, you cannot upload the authorised person’s ID together with the Power of Attorney. Since this document contains confidential data, QKB will reject the application and ask you to separate these documents and upload them in the designated place.
Electronic signature of the application
To finalize, the application must be electronically signed. For the registration of an LLC.For the registration of an LLC, the law requires a valid electronic signature from the applicant. This means that either the foreign administrator/partner himself or his authorized representative in Albania must obtain a digital signature certificate (eID or token from AKSHI or licensed providers). If you are a non-resident foreigner, you can also use the 14-day temporary electronic signature option offered free of charge on e-Albania for this purpose – this tool allows you to sign the necessary documents without physically possessing a Albanian e-ID. (For registering a natural person, identification with e-Albania credentials alone is sufficient; a dedicated electronic signature is not currently required for natural persons).
After obtaining the electronic signature for the first time, you must validate it; otherwise you will not be able to complete the process. The simplest and most practical way is, before applying, simply to sign a test document.
After the registration is approved and the NUIS (NIPT) is issued, your business is automatically registered with the other relevant authorities: the Tax Directorate, the Social Security Institute/Health and the Labor Inspectorate. This means you don't need to make separate initial registrations with these institutions – the QKB registration step is sufficient to notify them.
Steps after initial registration
Business registration is only the first step. After obtaining the extract and the tax identification number (NIPT), there are several post-registration procedures and obligations that must be completed in order to operate legally and avoid fines or future issues. Below are the 10 key steps after initial business registration (according to a practical guide by AlProfit Consult).
Opening the business’s electronic account in e-Albania
After obtaining the NIPT, create and activate your business account on the e-Albania portal (as mentioned above). This account will be needed for many online services going forward.
Opening an account in the Tax portal (e-Filing)
Register in the electronic tax system (the Tax Administration’s CATS portal) to access online tax filing. This is done one day after registration with QKB. You must have the NIPT ready; initially you will be given a temporary password (“Tatimetemia12”), then you will set a new password. Through this account you will submit monthly/quarterly returns, register employees, etc., so it must be opened immediately.
Documenting the business address (lease contract or ownership document)
Within a short time after registration (legally within 30 days), you must upload to the Tax portal a copy of the lease contract for the office/premises where you operate, or another document proving your right to use that premises. Even if you own the premises or use it free of charge (e.g., at home), you must declare this to taxes (in case of use-right or ownership). Attention: if you rent the premises from an individual who is not registered as a business, you as the tenant have the obligation to withhold and pay withholding tax of 15% of the rent value.
Opening the business bank account
Every commercial entity is required to have a bank account in the business’s name through which its transactions are carried out. Choose a bank and open a business current account. (Tip: open it immediately because you will need it for payments of obligations, for initial capital if not deposited yet, for invoicing through the bank, etc.). The bank will require the NIPT and company documents (QKB extract, statute) and identification documents of the administrator(s).
Preparing for Fiscalisation (the electronic invoicing system))
If your business will issue invoices (for the sale of goods or services), you must obtain an electronic certification for fiscalization and connect a software solution or the Tax Portal for issuing electronic invoices. Since 2021, every invoice in Albania must be issued electronically and reported to the central Tax system. This process is called “fiscalization.” You must choose whether to use a certified invoicing program or the free tax SelfCare portal, and obtain an electronic certificate from AKSHI for signing invoices. It's best to do this as soon as you are ready to make your first sale, so you don't delay your operations.
Licences/Special licensing (if required)
Check whether your activity requires a specific license, authorization, or permit to operate. Most common businesses (retail, consulting services, general manufacturing, etc.) do not need special licenses and can start operating immediately after registration. However, certain fields—primarily those related to health, public safety, or regulated sectors (e.g., pharmacies, medical clinics, transportation, construction, financial institutions, private education, etc.)—require obtaining a license or authorization before beginning operations. Example: If you are opening a dental clinic, after registering the business you must obtain a dental clinic license before treating patients. You can find the types of licenses, permits, and authorizations and the issuing bodies listed in the License Registry on the QKB website (the functions of the former QKL have now been integrated there). Therefore, check whether you need an additional licensing step based on your sector and complete it before starting operations.
Registration of Beneficial Owners
This is a new obligation (effective after 2020) for all legal persons (companies, foreign branches, NGOs, etc., but natural persons are excluded). Within 30 days of initial registration, each entity must declare in the Beneficial Owners Register who the ultimate beneficial owners are. To do this, first obtain an electronic signature (if you do not already have one) for the legal representative, then apply online in e-Albania for beneficial owner registration. You must upload the QKB extract, the statute/articles of incorporation, a copy of the IDs of the beneficial owners (e.g., individual partners who own the company) and declare ownership percentages. Do not skip this step – failure to register beneficial owners on time results in high fines.
Learn about local taxes
In addition to national taxes (such as income tax, VAT, social security contributions, etc.), businesses pay local taxes to municipalities, such as the cleaning tax, the sign tax (if they display a sign or inscription at the business), the infrastructure tax, etc., depending on the activity. Most local taxes are paid once a year, usually by April 20 of that year. In the year you register, the payment deadline is one month from the date of registration. Contact your municipality's tax office to obtain information on local obligations that may apply to your business.
Preparing the company stamp
Although by law a seal is no longer mandatory for documents signed by an entity (an authorized signature suffices), in practice it is useful to obtain a seal bearing the business name. It is often required by banks for in-person applications, or it simply enhances the seriousness of your documents. To get one, simply go to a shop that makes stamps, taking the company extract with you (to prove the name and NIPT). This step has no strict legal deadline, but it's recommended for your convenience.
Work and residence permits for foreign employees (if any)
If your business plans to employ foreign nationals in Albania, you must first apply for a Work Permit for each individual with the relevant authorities (the application is made online at e-Albania). For EU and Kosovo nationals, the procedure is simplified and the work permit is easier to obtain. Once the work permit is obtained, if the foreign national will stay in Albania for more than 90 days, they must also obtain a residence permit from the migration authorities. It is important to follow these procedures before or concurrently with the foreigner's start of employment to comply with the law.
By following the steps above, you will ensure that your new business is fully functional and compliant with the laws from the start.
Even if you have an accountant or consultant assisting you, you yourself must be informed and involved in these matters so that you know at all times what is happening with your business. Good beginnings often determine the path of success going forward.
The Unique Permit (residence and employment for foreign investors)
An important aspect for foreign investors or entrepreneurs: if you yourself (or your principal representative) are a foreign national and will come to live and work in Albania to manage your business, you must apply for a Unique Permit. The Unique Permit is a special type of permit that combines both the residence permit and the work permit in a single document. The application is submitted online on e-Albania (the “Application for a Unique Permit” service), and this permit allows foreign nationals to legally reside and work in Albania without the need for two separate procedures.
So, if you are, for example, a foreign entrepreneur opening a business in Albania and plan to relocate here to run it, plan to apply for the Unique Permit at the same time. The procedure requires several documents such as your Albanian business registration extract, financial proof, personal certificates, a residential lease agreement, etc., and it is usually carried out after the business has been registered (you must show that you have an employment basis here). For citizens of the EU, Kosovo, and some other regional countries, the work permit (part of the Single Permit) is granted automatically, without a quota and through a simplified procedure, but you still need to apply for the residence permit within 30 days of entering Albania.
Also, if you are registering a business as a natural person but you are not an Albanian citizen yourself, the easiest way is to grant a power of attorney to an Albanian citizen to represent you in the registration.
Even for new companies, if their first administrator is a foreign non-resident, it is practically much simpler for him to authorize another person in Albania (e.g., a lawyer, accountant, or local associate) by power of attorney to carry out the procedures on his behalf.
This avoids potential obstacles with electronic signatures, physical presence, or language barriers in the application. A power of attorney, if executed outside Albania, must then be legalized with an apostille seal, as mentioned above.
The power of attorney can be drafted to be valid not only for the initial registration but also for other administrative actions (e.g., opening bank accounts, appearing at tax offices, etc.).
Of course, choosing a trusted person is critical – usually a local business partner or a contracted professional consultant is preferred.
Tax regime and double taxation avoidance agreements
The tax system in Albania offers equal treatment for both domestic and foreign investors (legally there are no discriminatory distinctions). Some key points of the Albanian tax regime that may interest you:
Corporate income tax (profit tax)
Standard rate of 15% on the company's annual net profit. Small businesses with annual turnover up to 14 million lek have a 0% corporate tax rate until 2029 (a temporary fiscal relief to encourage small enterprises). Businesses with turnover above 14 million lek pay a 15% corporate tax rate. Individuals (sole traders) with high profits are subject to progressive taxation of up to 23% (the same as for high salaries) on a profit threshold, but for most small businesses this does not apply thanks to the exemption of up to 14 million lekë.
Dividend tax
8% rate on profits distributed to partners (natural persons or legal entities) as dividends. This tax is applied at the moment of profit distribution. If the profit is reinvested or retained undistributed, it is not taxed as a dividend. Be aware that this 8% may be reduced under double taxation treaties – for example, with certain states the dividend rate may drop to 5% or 0% for owners holding specified shares.
VAT (Value Added Tax)
The standard rate is 20% for the sale of goods and services. Businesses with annual turnover below 10 million lek are currently exempt from VAT (they are not required to register as VAT taxpayers). Once you exceed this threshold, you must register for VAT and begin calculating and reporting it. Some sectors have reduced rates (e.g., 6% for hotel accommodation).
Social and health insurance for employees
These are currently contributed by the employer and employee on the gross salary at rates of approximately 16.7% (employer) and 11.2% (employee) for social insurance, plus 1.7% each for health insurance (rates may change slightly with new laws). As an employer, you are obliged to register each employee within the day of employment and pay contributions monthly.
Local taxes
As mentioned, businesses pay local taxes depending on the municipality (e.g., infrastructure tax, education tax, property tax if you own property, etc.). These vary by city and sector, so inform yourself at your municipality.
Tax regime and double taxation avoidance agreements
To encourage foreign investment, Albania has signed bilateral double taxation avoidance agreements with many countries. Currently, agreements are in force with 43 different states, including most EU and regional countries (such as Italy, Greece, Turkey, Austria, France, Germany, the United Kingdom, etc.), as well as countries such as China, Russia, the United Arab Emirates, Singapore, India, and many others. These agreements ensure that when a company registered in Albania distributes profits to the parent company or partners in another country, income taxes are not paid twice.
In practice, this means that you as an investor can benefit from a reduction in withholding tax (e.g., dividend tax in Albania can be reduced to 5% or 0% under the agreement) or through a tax credit – the tax paid in Albania is recognized and credited in your country and vice versa. To apply such a treaty, your company in Albania (or you personally, depending on the type of income) will usually need to complete a treaty application form with the tax authorities and provide proof of tax residency from the other country.
It is advisable to consult a tax advisor regarding these procedures. However, it is important to note that Albania has an extensive network of international tax treaties designed to reduce the tax burden for foreign investors.
Financial support opportunities and incentives
The Albanian government has taken steps to encourage investment and entrepreneurship by offering various forms of financial support or incentives for specific categories and projects—both for domestic and foreign investors. Here are some elements worth mentioning:
Grants for innovative start-ups
In March 2022, the law “On the support and development of start-ups” was approved, creating a favourable framework for start-ups and providing financial grants from the state budget and other support forms for promising initiatives. Foreigners can also benefit from these schemes, provided that the start-up is registered in Albania. To qualify for a grant, the start-up project must meet certain priority objectives: for example, to bring innovative novelty in priority sectors for the economy, have positive environmental impact, empower youth, girls and women in entrepreneurship, or promote social inclusion and diversity. These criteria show that the state aims to support especially innovative, “green”, and socially impactful initiatives. If your project falls into these categories, it is worth exploring the possibility of applying for offered funds/grants from authorities (e.g., the Ministry of Entrepreneurship or special agencies).
Sectoral incentives (tax)
For strategic investments or certain sectors, there are some fiscal incentives. One example is the elite tourism sector: investments in 4–5 star accommodation structures benefit from reduced profit tax (e.g., 5–6%) and reduced VAT for accommodation services. Likewise, sectors such as agriculture have facilitating schemes (compensated VAT), Information Technology (IT) has exemptions from some taxes for qualified employees, the automotive industry has customs relief for raw materials, etc. These incentives change with annual fiscal policies, therefore inform yourself at AIDA (the Investment Development Agency) or the Ministry of Finance for the latest incentives. Important: foreign investors are treated the same as domestic ones for benefiting from these reliefs – there are no additional barriers for foreigners in this regard.
Financing/grants from donors and the EU
Albania benefits from some international programs that support businesses. For example, the IPARD program (EU-funded) offers grants up to 60–70% for investments in agriculture and agrotourism – foreign investors can also obtain these by registering businesses in these fields in Albania (and applying with concrete projects). There are also funds from development banks such as EBRD and IFC that co-finance private projects in sectors such as renewable energy, energy efficiency, or socially impactful projects, where foreign investors can apply or cooperate with these institutions.
Strategic Investor status
Albanian law provides that foreign (or domestic) investments of particular value and importance may be declared “strategic investments,” granting them preferential treatment such as expedited bureaucratic procedures, state assistance in matters of property or infrastructure, etc. This applies primarily to major investments in tourism, energy, infrastructure, agriculture, etc., and typically to investment amounts above a high threshold (millions of euros). If your company is planning such a project, it is worth exploring the possibility of obtaining this status through AIDA.
In summary, Albania’s investment climate is gradually improving and there is a clear trend toward liberalisation, facilitation, and promotion of foreign investment. This is seen in simplification of procedures (online registration, one-stop-shop), fiscal relief for new businesses, as well as support policies such as start-up grants. Naturally, challenges and bureaucracy in implementation still remain, but the trend is positive and foreign investors are considered a key factor for economic development.