Law No. 58/2022 “On the creation, organization, and functioning of Technology and Science Parks” presents one of the most important efforts of the Albanian state to create a sustainable ecosystem of innovation, technology, and scientific research.
This law not only aims to promote technological development and the creation of qualified jobs, but also offers a series of fiscal and organizational incentives that make participation in this structure attractive for both businesses and new investors.
What are technology parks and how are they created?
Technological and scientific parks, according to this law, are defined spaces where businesses and research structures working on the development of innovative products or services are gathered.
They can be built on state or private land and approved by decision of the Council of Ministers, upon proposal by the ministry responsible for the economy.
Their objective is to create conditions for the development of high technology, for the improvement of existing products, and to create jobs for professionals in technical and scientific fields.
Who can benefit from this law?
In practice, this law can benefit two broad categories: developers and users. The developer is the entity (natural or legal person) that builds and manages the park.
He has the right to select users, enter into agreements with them, and collaborate with a higher education institution as an integral part of the park.
Meanwhile, the users are businesses operating within the park that conduct research and development, produce or improve innovative products and services, or engage in training and professional capacity development in technological fields.
Fiscal and organizational facilitations
One of the most important features of this law is the package of tax relief measures.
The law provides that income generated from activities carried out within the park is not subject to profit tax for 15 years.
Also, the wages of employees involved in research and development are exempt from all taxes for 10 years.
The materials, equipment, and services used in the park, which are related to the production of an innovative product, are exempt from VAT.
Furthermore, constructions carried out in the park are exempted from property tax for 10 years and from infrastructure impact tax. The state also foresees that training costs for scientific and technical employees may be partially reimbursed.
Practical examples: Who can benefit?
For businesses operating in fields such as information technology, data processing, software development, or advanced manufacturing technologies, this law offers an extraordinary opportunity for development.
We can mention, for example, an Albanian company that develops digital platforms for the international market. If it relocates its research and development activities to such a park, it benefits not only from tax incentives but also from the opportunity to collaborate with universities and use a modern infrastructure that enables faster product development.
Simplified procedures and state support
To operate, the parks must be approved by the Council of Ministers and then have their entrances and exits, as well as their customs point, defined. The latter is necessary because the parks operate as "free zones" under the Customs Code. This means that goods entering the park for use in the development of an innovative product are treated the same as export goods, with a zero VAT rate.
Another important aspect is the acceleration of procedures. Every request for a permit or license related to the park's development must be processed by public institutions within 15 working days. If this does not happen, approval is considered granted. This is an important mechanism that avoids bureaucratic delays and encourages investors to act more quickly.
Cooperation with academia and ecosystem building
Regarding organization, the developer has the right to enter into contracts with third parties for the park's management, but remains responsible for its operation and for complying with the agreements. He also has the obligation to include a higher education institution as a partner in the park.
This creates beneficial collaboration bridges between academia and business, and enables students and researchers to engage in concrete projects.
Regional Models: What's Happening in the Balkans?
If we look at regional practices, Croatia, Serbia, and North Macedonia have already created technology parks that are yielding visible results.
In Novi Sad In Belgrade, parks have been established that house dozens of innovative companies, creating thousands of jobs and attracting foreign investment.
These models have also served as inspiration for Albania, which with this law has built a strong legal and fiscal basis to follow the same direction.
Scope and integrity of purpose
We recall that the law explicitly prohibits the relocation of an existing activity into the park solely to take advantage of benefits. This means the goal is to support the development of innovations and not fiscal evasion.
Therefore, every application must justify the development of an innovative, new product or service, and not the continuation of a routine activity aimed at tax savings.
An opportunity to take advantage of
In conclusion, Law no. 58/2022 is not merely an initiative to build some new buildings or grant tax exemptions. It is a serious effort to change the way the Albanian economy functions, directing it towards knowledge, innovation, and collaboration with academia.
Any business with an innovative idea, targeting international markets, or wishing to work with advanced technology, should seriously consider the possibility of being part of a technology park.
On the other hand, for developers who have land or capital to build such a structure, this is an opportunity to create a new business model that benefits from state support and has a clear development horizon for the next 10-15 years.
Download the law