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 may carry out activity in Albania through several main legal forms: as a natural person (small business in one’s personal name), as a branch or a representative office of an existing foreign company, or by establishing a new company registered in Albania (e.g., a limited liability company – Sh.p.k.), where the partner (shareholder) may be the foreign company itself. Below we clarify 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.
A new company offers flexibility and independence in operations, the possibility of having different partners, and limits legal/financial risk to its capital. At higher profit levels, the effective tax burden may be lower than in the case of a sole proprietor. Establishing a company requires preparing founding documentation (articles of incorporation, statute) and following registration procedures, as well as meeting 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 start activity in Albania without creating a new entity – the organisational structure and ownership remain the same. Transferring funds (profit) from the branch to the parent company is simple and usually is not treated as a dividend, so it may not be subject to dividend tax (the branch’s profit is taxed only as company profit, under Albania’s tax rates).
Legally and financially, the foreign company is directly responsible for obligations assumed by the branch. Also, registering a branch requires additional documents from the parent company, such as the foreign company’s registration certificate and a document confirming its active status (not in liquidation/bankruptcy), which must be obtained from the competent authorities in the company’s country of origin. Likewise, opening a branch typically requires an official decision of the competent body of the parent company for opening the branch in Albania. Unlike a new company, a branch does not provide a separation of liabilities – any financial or legal issue of the branch reflects directly on the parent company.
Representative office
A representative office is the most basic presence of a foreign company in Albania. It does not have commercial status and is not allowed to carry out profit-generating economic activity – therefore 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 a physical presence for marketing purposes or to study the Albanian market without 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 a representative office has fewer post-registration obligations because it does not pay profit tax (since it generates no revenue) and is not included in VAT schemes, etc. Since the representative office cannot generate revenue, the parent company must continuously finance it for its expenses. This form makes sense only when the planned activity does not involve sales or services for payment within Albania.
A foreign investor may also register as a natural person (self-employed) in Albania, especially if the activity is small. The basic procedure is similar to that of an Albanian citizen, but keep in mind that to personally carry out activity 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 authorise another person (e.g., a local collaborator) to register the activity as a natural person in their name in order to facilitate 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)
These include the foreign company’s registration certificate in the country where it was established, as well as a certificate/status confirmation stating that the company is not in liquidation or bankruptcy (and has not been deregistered). These documents are usually issued by the competent commercial or judicial bodies of the foreign state. Also, when the parent company is a partner in the new Albanian company, the deed of incorporation and the statute of the foreign company, or the equivalent founding document, together with any subsequent amendments, must be submitted. For a branch, the official 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.
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 Articles of Incorporation and the Statute of the new company are required (if drafted as separate documents). In practice, many founders choose to draft the articles and statute in a single document, which simplifies formalities. These documents set out all fundamental company details (the statute’s content is detailed below). For joint-stock companies, requirements are somewhat broader, including, for example, the nominal value and number of shares, details of the supervisory board, etc., but small investors usually choose the Sh.p.k. form.
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
You must submit the identification document (e.g., passport) of the legal representative of the entity being registered – usually the administrator of the new company or the appointed head of the branch/representative office. Identification documents of the partners are also required (if not included in the documents above). If the application is filed by an authorised person (not the administrator or partner), a Power of Attorney must be provided authorising that person, as well as the identification document of the applicant.
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 latest year’s balance sheet (financial statements) of the foreign company must be filed. For private joint-stock companies (sh.a.), a document from a bank confirming payment of the cash contribution to capital is also required (at least 25% of capital must be paid before registration), 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 typical.
Any official or private document issued by a foreign authority (e.g., certificates, confirmations, notarial acts abroad) must be legalised or provided with an apostille in order to be recognised in Albania. This means that after the document is issued by the foreign institution, you must take it to the relevant office (e.g., Ministry of Foreign Affairs or competent consular office) in the country of origin to obtain an Apostille (under the Hague Convention) or classical consular legalisation, confirming the document’s validity. Documents in a foreign language must also be translated into Albanian by licensed translators and notarised before submission.
Articles of Incorporation and Statute: What should they contain?
The Articles of Incorporation is the document formalising the partners’ agreement to establish the new company (it does not apply to branches/representative offices). The Statute sets out the company’s operating rules. As mentioned, for an Sh.p.k. these two documents may be combined into one. Albanian law (Law No. 9901/2008 “On Entrepreneurs and Commercial Companies”) sets out certain mandatory elements that must be included. Below are the main points that should not be missing from the statute/articles of an Sh.p.k.: 9901/2008 “Për tregtarët dhe shoqëritë tregtare”) përcakton disa elementë të detyrueshëm që duhet të përfshihen. Ja pikat kryesore që s’duhet të mungojnë në përmbajtjen e statutit/aktit të themelimit të një sh.p.k.:
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 head office in Albania. In the initial phase it is enough to declare it, without the need to submit a lease contract or ownership document for the premises. An address where the activity will be carried out is sufficient (it can also be your residence for very small businesses, e.g., a freelancer).
Scope of activity
A description of the economic activity the company will carry out. It is advisable to formulate the scope briefly and clearly – ideally one sentence or a few phrases – stating the main field (e.g., “IT consulting services”, “production of plastic products”, “wholesale trade of construction materials”, etc.). An overly long and complex description can lose focus and create ambiguity.
Partner data
The full name of each partner (natural or legal person), patronymic, date of birth/identification number (e.g., NUIS for legal persons, personal number for individuals), and their residential address. For legal-person partners (companies), registration details in their country are included. The participation of each partner in the capital must also be declared (percentage or number of quotas – see next point).
Share capital and division into quotas
Limited liability companies may have even symbolic share capital – the law requires a minimum of ALL 100, so in practice this is not an obstacle (it is recommended, however, to set a somewhat higher capital, e.g., a few hundred thousand ALL, depending on needs, to give the company seriousness, although legally even ALL 100 is sufficient).
We advise starting with modest capital; it is possible to increase capital later as needed, while excessive initial capital may have no practical effect beyond management complications. Capital is divided into quotas (for Sh.p.k.). The division is done by determining the number of quotas owned by each partner, regardless of percentage.
For example, it may be decided that one partner (A) and another (B) have one quota each, even though their contributions differ – e.g., A contributes 10% of the capital and B contributes 90%. In this case, the nominal value of A’s quota will be 10% of the capital, and B’s quota 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 administrator (or administrators), their details (ID, address), and the term of appointment. Attention: under the law, an administrator may be appointed for a term not longer than 5 years (with the right of reappointment). Therefore, the statute must specify, for example, “the administrator is appointed for a 5-year period”. Representation powers must also be defined, i.e., whether the administrator represents the company without limitations, or with limitations (e.g., two administrators must sign together for transactions above a certain amount, etc., if there are two or more). Usually, for simplicity, new companies with one administrator grant unlimited representation. The statute also includes signature specimens of those representing the company – these are taken in the form of a signed declaration (often completed via standard forms during the online application).
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 (mainly for sh.a.), the method of transferring quotas/shares to third parties, the procedure for convening the partners’ assembly, etc. For typical small and medium businesses, these are usually handled with standard legal wording.
If you do not have experience drafting these documents, you can use template formats for the articles and statute. AlProfit Consult offers some free templates you can download and adapt, e.g., “Articles of Incorporation shpk (several partners)” and “Statute shpk (several partners)”. These can help as a starting point to understand what a company statute usually provides. shkarkoni dhe përshtatni: p.sh. “Akt Themelimi shpk (disa ortakë)” dhe “Statut shpk (disa ortakë)”. Këto mund t’ju ndihmojnë si pikënisje për të kuptuar çfarë parashikon zakonisht statuti i një shoqërie.
Online registration step by step at QKB
Since 2020–2022, business registration is done only online through the government portal e-Albania – physical QKB counters no longer process paper applications. Therefore, as a first step, create a business account in e-Albania. First you must have a personal individual account in e-Albania (if you do not have one, register as a citizen). Then, after registering the business, your business account will be created. Do not confuse the personal account with the business account – they are separate. If you are a natural person (sole business), your personal account is used to manage business services; if you are a legal entity (Sh.p.k.), after you receive the NIPT you can register the business’s electronic 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) (të skanuara, në PDF)
Make sure you have all documents prepared according to the list – if something is missing, the application will not be accepted. Documents from abroad must have apostille and be translated, as explained above. The power of attorney (if you are registering on behalf of someone else) must also be scanned. At this stage you also upload the legal representative’s signature specimens and their identification document.
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 finalise, the application must be signed electronically. For registering an Sh.p.k., the law requires a valid electronic signature of the applicant. This means that either the foreign administrator/partner, or their authorised 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 free 14-day temporary electronic signature option offered in e-Albania for this purpose – it allows you to sign necessary documents without physically having an Albanian electronic ID. (For registering a natural person, identification through e-Albania credentials is sufficient; a dedicated electronic signature is currently not mandatory 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 approval of registration and issuance of the NUIS (NIPT), your business is automatically registered with other relevant bodies as well: the Tax Directorate, the Social/Health Insurance Institute, and the Labour Inspectorate. This means you do not need to separately register initially with these institutions – registration at QKB 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 sales of goods or services), you must obtain an electronic certificate for fiscalisation 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 Tax Administration’s central system. This process is called “fiscalisation”. You must choose whether to use certified invoicing software or the free Tax SelfCare portal, and obtain from AKSHI an electronic certificate to sign invoices. It is good to do this as soon as you are ready to make your first sale, so you do not delay operations.
Licences/Special licensing (if required)
Verify whether your activity requires a licence, authorisation, or specific permit to operate. Most ordinary businesses (trade, consulting services, general production, etc.) do not need special licences and can start work immediately after registration. But certain fields, mainly those related to health, public safety, or regulated sectors (e.g., pharmacies, medical clinics, transport, construction, financial institutions, private education, etc.) require obtaining a licence or authorisation before starting activity. Example: if you are opening a dental clinic, after registering the business you must be licensed as a dental clinic before treating patients. Types of licences/permits/authorisations and issuing bodies can be found listed in the Licences Register on the QKB website (functions of the former QKL are integrated there). Therefore, check whether you need an additional licensing step based on your sector and undertake 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 corporate income tax, VAT, social insurance, etc.), businesses pay local taxes to the municipality, such as the cleaning fee, signage tax (if you place signage on the business), infrastructure tax, etc., depending on the activity. Most local taxes are paid once per year, usually by 20 April of that year. In the year you register, the payment deadline is one month from the registration date. Contact the local taxes directorate in your municipality to obtain information on local obligations relevant to your business.
Preparing the company stamp
Although by law a stamp is no longer mandatory for documents signed by an entity (an authorised signature is sufficient), in practice it is useful to have a stamp with the business name. It is often required by banks, for some physical applications, or simply increases the formality of documents. To obtain one, go to a stamp maker with the company extract (to prove name and NIPT). This step has no strict legal deadline, but is recommended for practicality.
Work and residence permits for foreign employees (if any)
If your business plans to employ foreign citizens in Albania, for each one you must first apply for a Work Permit through the competent authorities (application is made online on e-Albania). For EU citizens and Kosovo citizens, the procedure is simplified and the work permit is obtained more easily. After the work permit is obtained, if the foreigner will stay in Albania for more than 90 days, they must also obtain a Residence Permit through migration authorities. These procedures are important to follow before or in parallel with the foreigner starting work, to be compliant 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 themselves: if you (or your main representative) are a foreign citizen 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 includes both the residence permit and the work permit in one document. The application is made online on e-Albania (service “Application for Unique Permit”), and this permit enables foreign citizens to stay and work legally in Albania without needing two separate procedures.
Therefore, if you are, for example, a foreign entrepreneur opening a business in Albania and you will relocate here to run it, plan in parallel the application for the Unique Permit. The procedure requires some documents such as your Albanian business extract, financial evidence, personal certificates, housing lease contract, etc., and is usually done after the business is registered (you must show you have an employment basis here). For EU citizens, Kosovo and some other regional countries, the work permit part (part of the Unique Permit) is obtained automatically without quota and through a simpler procedure, but you still must apply for the residence permit within 30 days of entering Albania.
Also, if you are registering a business as a natural person but are not an Albanian citizen, the easiest way is to issue a Power of Attorney authorising an Albanian citizen to represent you in registration. For new companies as well, if its first administrator will be a non-resident foreign person, in practice it is much simpler for them to authorise by Power of Attorney another person in Albania (e.g., a lawyer, accountant, or local collaborator) to carry out procedures on their behalf. This avoids possible obstacles with electronic signature, physical presence, or language barriers in the application. The Power of Attorney, if made outside Albania, must then be legalised with an apostille stamp, as mentioned above. The Power of Attorney can be drafted to be valid not only for 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
Albania’s tax system offers equal treatment for domestic and foreign investors (legally there are no discriminatory differences). 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 turnover up to ALL 14 million per year have a 0% profit tax until 2029 (a temporary fiscal relief to encourage small enterprises). Businesses with turnover above ALL 14 million pay 15% profit tax. Natural persons (sole traders) with high profits are subject to progressive tax up to 23% (same as high salaries) above a profit threshold, but for most small businesses this does not apply due to the exemption up to ALL 14 million.
Dividend tax
Rate of 8% on profits distributed to partners (natural or legal persons) as dividends. This tax applies at the moment of profit distribution. If profit is reinvested or retained undistributed, it is not taxed as a dividend. Note that this 8% may be reduced based on double taxation agreements – e.g., with some states the dividend rate may fall to 5% or 0% for owners with certain holdings.
VAT (Value Added Tax)
The standard rate is 20% for the sale of goods and services. Businesses with annual turnover below ALL 10 million are currently exempt from VAT (not obliged to register as a VAT entity). Once you exceed this threshold, you must register for VAT and begin calculation and declaration. 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 as an investor you may benefit from a reduction in withholding tax (e.g., the dividend tax in Albania may be reduced to 5% or 0% under the agreement) or from a tax credit – tax paid in Albania is recognised and credited in your country and vice versa. To apply such an agreement, your company in Albania (or you personally, depending on the income type) usually must complete a form for applying the agreement with the tax authorities and obtain a tax residence certificate from the other state.
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 certain forms of financial support or incentives for specific categories and projects – for both domestic and foreign investors. Below 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 special value and importance may be declared “strategic investments”, granting preferential treatment such as accelerated bureaucratic procedures, state assistance in property or infrastructure issues, etc. This applies mainly to major investments in tourism, energy, infrastructure, agriculture, etc., and usually for investment amounts above a high threshold (millions of euros). If your company is planning such a project, it is worth exploring the possibility of benefiting from 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.