{"id":39481,"date":"2026-04-22T10:48:18","date_gmt":"2026-04-22T10:48:18","guid":{"rendered":"https:\/\/alprofitconsult.al\/?p=39481"},"modified":"2026-05-25T16:50:32","modified_gmt":"2026-05-25T16:50:32","slug":"rules-2026-for-foreigners-in-albania","status":"publish","type":"post","link":"https:\/\/alprofitconsult.al\/en\/rregullat-2026-te-huajt-shqiperi\/","title":{"rendered":"Foreigners in Albania: New 2026 Rules, 0% Tax, and Fiscal Residence"},"content":{"rendered":"
\nPublished on<\/strong> April 22, 2026 \u00b7 Updated on<\/strong> May 25, 2026
\nLatest update, added details of Order No. 94, dated May 6, 2026<\/a> for the official format of the EU Registration Certificate.\n<\/div>\n\n\n\n

The residence and employment of foreign nationals in Albania are governed by a legal framework that is subject to continuous change. In April 2026, concrete amendments were introduced, including new procedures, updated permit categories, and the streamlining of existing processes. Several of these changes directly impact foreigners currently residing in the country. Concrete changes<\/a>New procedures, new permit categories, and simplifications of existing processes. Some of them directly affect the foreigners living here today.<\/p>\n\n\n\n

However, administrative changes represent only one aspect of residency in Albania. Every foreign national working or establishing a business in Albania faces tax-related questions that often remain unresolved: how corporate income tax functions in practice, the definition of tax residency, and the applicable social contribution rates. This article addresses both perspectives.<\/p>\n\n\n\n

If you are seeking information regarding business formation, special powers of attorney, and registration steps, please first refer to our introductory article on foreigners<\/a>. This article serves as a comprehensive supplement to those topics.<\/p>\n\n\n\n

What Changed with VKM No. 240, Dated 01.04.2026<\/h2>\n\n\n\n

The decision amends and supplements VKM 858 of 2021<\/a>, the primary act regulating the entry, residence, and treatment of foreigners in Albania. The effects are immediate.<\/p>\n\n\n\n

Departure deadline after document expiration<\/strong> <\/h3>\n\n\n\n

When the document upon which you reside in Albania expires, you have three calendar days to exit the territory. This applies if you are staying visa-free or with an active Schengen, US, or UK visa. Staying beyond this deadline categorizes the person as a foreigner without regular residence status, leading to administrative consequences.<\/p>\n\n\n\n

Same-day provisional permit<\/strong><\/h3>\n\n\n\n

As soon as you submit an application for a residence permit or a unique permit, the border and migration authority issues a provisional permit within one working day. It is valid for one month and is automatically extended until a final decision is reached. Banks, tax authorities, and other institutions recognize it as an official residence document during the review period.<\/p>\n\n\n\n

Possibility of reapplication after rejection<\/strong><\/h3>\n\n\n\n

If a request is rejected, you have 30 days from the decision date to reapply without starting the procedure from the beginning. Many rejections stem from documentation deficiencies that can be corrected within this timeframe.<\/p>\n\n\n\n

Registration Certificate for EU citizens<\/strong><\/h3>\n\n\n\n

This is the change with the broadest impact. Citizens of European Union countries residing in Albania for periods exceeding three months now have a special procedure. Until now, they followed the same procedures as any other foreigner.<\/p>\n\n\n\n

The Registration Certificate is issued free of charge. The application is made online through the e-Albania portal. The main documents are a valid passport or ID card, evidence of entry into Albanian territory, an address declaration, and a photograph. Classification is made by category: employee or self-employed, person with sufficient financial resources, student, or family member of an EU citizen. Verification is completed within two working days, and the certificate is issued in electronic format.<\/p>\n\n\n\n

On May 6, 2026, the Minister of the Interior approved with Order No. 94<\/a> the official format and content of the Certificate of Registration. The document is bilingual in Albanian and English, and contains the document number, photograph, date of issuance, personal data, citizenship, purpose of residence, and the official seal of the Department of Border and Migration under the General Directorate of the State Police.<\/p>\n\n\n\n

The application must be submitted within three months of entry into the Republic of Albania. The certificate is valid for five (5) years from the date of issuance, and each new certificate replaces the previous one.<\/p>\n\n\n\n

The most important long-term provision is found at the end of the Directive. EU nationals who have lawfully and continuously resided in Albania for five years acquire the right of permanent residence. This is a concrete advantage for European entrepreneurs and professionals who are building their project here for an extended period, and for their families who are planning to live in Albania.<\/p>\n\n\n\n

Residence card for non-EU family members<\/strong><\/h3>\n\n\n\n

Family members with non-EU citizenship are now also handled through a special procedure, also free of charge and online. Requirements include a passport, marriage or cohabitation certificate (legalized or with an apostille and translated into Albanian), and a copy of the EU citizen's registration certificate. The card is revoked if the EU citizen no longer meets residency criteria, if the family relationship has ceased, or if forged documents were presented.<\/p>\n\n\n\n

Unique permit for domestic workers<\/strong><\/h3>\n\n\n\n

A new category of unique permit for foreign nationals employed as domestic workers by individual employers. It requires online employment approval from the National Agency for Employment and Skills (AKPA) and an employment contract according to the Labor Code. After the biometric card is issued, the foreigner is registered in the AKPA system within ten calendar days.<\/p>\n\n\n\n

Renewal of the permit becomes simpler<\/strong><\/h3>\n\n\n\n

During renewal, documentation from the country of origin submitted during the first application does not need to be reissued. This obligation applies only to the first application. When a marriage was concluded outside Albania and fresh certificates cannot be provided, a joint notary statement from the last six months made before an Albanian notary is accepted as a substitute.<\/p>\n\n\n\n

Ukrainian citizens: residence without a permit until March 2027<\/h3>\n\n\n\n

Decision No. 257, dated 10.04.2026 <\/a>, provides that citizens of Ukraine may enter without a visa and stay without a residence permit until March 30, 2027. This applies both to those entering after the decision takes effect and to those already in Albanian territory. The previous Decision No. 169, dated 18.03.2022, is repealed.<\/p>\n\n\n\n

\n Request a Free Consultation<\/a>\n<\/div>\n\n\n\n

Profit Tax<\/h2>\n\n\n\n

Law No. 29\/2023 \u201cOn income tax\u201d<\/a>in force since January 1, 2024, is the main tax act for every business in Albania, whether Albanian or foreign.<\/p>\n\n\n\n

0% rate until 2029<\/h3>\n\n\n\n

Article 69 of the law provides for a 0% profit tax rate until December 31, 2029, for any sole proprietor, self-employed individual, or legal entity (LLC being the most common form) with an annual turnover up to 14,000,000 ALL, approximately 140,000 euros. The legal form does not matter. The type of activity does not matter.<\/p>\n\n\n\n

\n

Decision No. 52, dated June 27, 2024, of the Constitutional Court confirmed that even liberal professions (doctors, lawyers, architects) benefit from the 0% rate if the turnover remains below 14,000,000 ALL. The previous restriction via VKM 753\/2023 is invalid.<\/p>\n<\/blockquote>\n\n\n\n

How tax changes above the 14 million ALL threshold<\/h3>\n\n\n\n

Above the 14,000,000 ALL limit, the two forms split. The 14,000,000 ALL limit above the threshold refers to taxable profit, not turnover. You may have a turnover of 20,000,000 ALL but a profit of 9,000,000 ALL: the tax remains zero.<\/p>\n\n\n\n

Element<\/th>Sole Proprietor<\/th>Legal Entity (LLC)<\/th><\/tr><\/thead>
Turnover up to 14,000,000 ALL<\/td>0% until 2029<\/td>0% until 2029<\/td><\/tr>
Profit above threshold (up to 14M ALL)<\/td>15%<\/td>15% (flat)<\/td><\/tr>
Profit over 14,000,000 ALL<\/td>23%<\/td>15% (flat)<\/td><\/tr>
Dividend Tax<\/td>Not applicable<\/td>8% (withheld at source)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Other tax incentives<\/h3>\n\n\n\n

The law also provides for the possibility of carrying forward tax losses for up to five years. If the business closes with a loss during the year, that amount is offset against the profits of future years. Additionally, outstanding debts are deducted from the tax base progressively: 20% after 6 months, 40% after 12 months, and up to 85% after 36 months.<\/p>\n\n\n\n

Zero tax does not mean zero obligations<\/h3>\n\n\n\n

The 0% profit tax rate does not exempt you from filing. Every business must submit an annual tax declaration by March 31 of the following year. Failure to comply results in administrative penalties, even when there is no tax to pay. The business is also required to maintain accounting books and fiscalization documentation.<\/p>\n\n\n\n

Read also: Zero Tax until 2029 in Albania: Who Benefits and How It Works.<\/a><\/p>\n\n\n\n

Does your business benefit from the 0% rate? We analyze your specific situation at no cost.<\/p>\n\n\n\n

\n

Every time there is a tax or financial change that affects your business, we notify you directly by email with a practical explanation.<\/p>\n \n Send me free notifications\n <\/a>\n<\/div>\n\n\n\n

VAT and Fiscalization<\/h2>\n\n\n\n

When VAT registration becomes mandatory<\/h3>\n\n\n\n

Registration as a VAT subject becomes mandatory when the annual turnover of the business exceeds 10,000,000 ALL. Below this limit, registration is voluntary but can be beneficial. If your primary clients are VAT-registered businesses, invoicing with VAT allows them to deduct it, making you more competitive. The standard VAT rate is 20%. Certain sectors apply a reduced rate of 6%, including tourist accommodation.<\/p>\n\n\n\n

Fiscalization obligations<\/h3>\n\n\n\n

Every registered business has a fiscalization obligation: every sales invoice must be issued through the electronic system of the General Directorate of Taxes. This applies regardless of the size or legal form of the business. Non-compliance results in administrative fines.<\/p>\n\n\n\n

Tax Residency<\/h2>\n\n\n\n

A residence permit and tax residency are not the same thing. A residence permit regulates where you live legally. Tax residency regulates where your income is taxed. Confusing them has direct consequences.<\/p>\n\n\n\n

Legal criteria<\/h3>\n\n\n\n

Article 8 of Law No. 29\/2023<\/a> provides two conditions. Meeting either one is sufficient.<\/p>\n\n\n\n

The first condition: 183 days<\/strong><\/h4>\n\n\n\n

You have stayed in Albania for 183 days or more during the calendar year, whether continuous or not. An active residence permit is not required. Calendar days are counted including the day of entry and the day of exit.<\/p>\n\n\n\n

The second condition: center of vital interests<\/strong><\/h4>\n\n\n\n

Even if you stay for fewer than 183 days, you are a tax resident if the center of your vital interests is in Albania: your primary family, primary residence, primary economic activity, or regular occupation. This criterion is assessed by tax authorities by analyzing the totality of circumstances, not a single element.<\/p>\n\n\n\n

What changes in practice<\/h3>\n\n\n\n

As a tax resident of Albania, all your worldwide income, regardless of where it is generated, is subject to Albanian taxation. Rent from an apartment abroad, dividends from your company in Europe, or honorariums from foreign clients: all enter the taxable base. As a non-tax resident, only income from Albanian sources is taxed.<\/p>\n\n\n\n

Double taxation avoidance agreements<\/h3>\n\n\n\n

Albania has signed agreements<\/a> with most European countries, including Italy, Germany, France, Greece, and Turkey. These agreements have two functions: they regulate which state has the primary right to tax and they eliminate double taxation by recognizing the tax paid abroad in the country of residence. However, this does not happen automatically: it requires specific documentation and procedures. If your country of origin does not have an agreement with Albania, income may be taxed twice without the possibility of compensation.<\/p>\n\n\n\n

Read also: How Foreigners Start a Business, Work, and Remain Legally in Albania<\/a><\/p>\n\n\n\n

\n Request a Free Consultation<\/a>\n<\/div>\n\n\n\n

Social and Health Contributions<\/h2>\n\n\n\n

Every foreigner working legally in Albania has an obligation for social and health contributions. This obligation is not related to citizenship but to employment status. The 0% profit tax rate does not eliminate this obligation.<\/p>\n\n\n\n

Rates as an employee<\/h3>\n\n\n\n
Contribution<\/th>Employer<\/th>Employee<\/th><\/tr><\/thead>
Social Insurance<\/td>15%<\/td>9.5%<\/td><\/tr>
Health Insurance<\/td>1.7%<\/td>1.7%<\/td><\/tr>
Total<\/strong><\/td>16.7%<\/strong><\/td>11.2%<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The minimum calculation base is the national minimum wage, currently 50,000 ALL gross per month.<\/p>\n\n\n\n

\n

For an employee with a gross salary of 100,000 ALL\/month: The employer pays 16,700 ALL in contributions. The employee is deducted 11,200 ALL. The total monthly cost for the employer is 116,700 ALL.<\/p>\n<\/blockquote>\n\n\n\n

Rates as a sole proprietor or active partner<\/h3>\n\n\n\n

If you perform active functions in the business (management, administration, or regular operational activity), you have a contribution obligation regardless of whether you draw a salary or not. The minimum base is the national minimum wage. If you choose to declare a higher salary, contributions are calculated on that basis.<\/p>\n\n\n\n

Bilateral social security agreements<\/h3>\n\n\n\n

Albania has agreements with several countries, including Italy, Turkey, and North Macedonia. Contributions paid in one country are recognized by the other and accumulated for pension purposes. If your country of origin does not have an agreement with Albania, contributions are paid in both countries without the possibility of compensation. This should be verified before starting employment.<\/p>\n\n\n\n

From Our Practice<\/h2>\n\n\n\n

Every situation has its specificities, but certain questions return frequently. Here are three of them.<\/p>\n\n\n\n

The consultant with an LLC under the turnover threshold<\/h3>\n\n\n\n

A foreign consultant operates from Tirana and serves clients outside Albania. The annual turnover of the LLC is approximately 90,000 EUR, below the 140,000 EUR limit. The profit tax until the end of 2029 is zero. If they distribute 30,000 EUR as a dividend, they pay 2,400 EUR in dividend tax. Compared to the rates in Western European countries, the difference is measurable and fully legal.<\/p>\n\n\n\n

LLC with turnover above the threshold<\/h3>\n\n\n\n

A commercial LLC has an annual turnover of 20,000,000 ALL, above the 14,000,000 ALL threshold. The 0% rate does not apply. The profit tax is a flat 15% on all taxable profit, regardless of the amount. If the taxable profit is 5,000,000 ALL, the tax is 750,000 ALL. If the profit is 18,000,000 ALL, the tax is 2,700,000 ALL.<\/p>\n\n\n\n

Sole proprietor with profit over 14,000,000 ALL<\/h3>\n\n\n\n

A sole proprietor has an annual turnover of 20,000,000 ALL and a taxable profit of 18,000,000 ALL. The tax is calculated in two tiers. On the profit up to 14,000,000 ALL, a 15% rate is applied, totaling 2,100,000 ALL. On the portion of the profit exceeding 14,000,000 ALL (which is 4,000,000 ALL), a 23% rate is applied, totaling 920,000 ALL. Total tax: 3,020,000 ALL. An LLC with the same figures would pay only 2,700,000 ALL. <\/p>\n\n\n\n

\n

The amount of 14 million ALL as the turnover limit for a business regarding whether it pays tax or not is incidental and has no connection with the tax tiers for a physical person: profit less than 14 million ALL at 15% and the difference in profit over 14 million ALL taxed at the 23% rate. The two limits are different. The first limit, regarding income, is provisional until 2029 and applies to every business, while the second limit of 14 million ALL will remain in force after 2029 and applies only to sole proprietors.<\/p>\n<\/blockquote>\n\n\n\n

The European citizen with unintended Albanian tax residency<\/h3>\n\n\n\n

A European citizen works from Tirana for clients outside Albania and spends over 183 days in the country during the year. According to Article 8 of the law, this condition makes the person an Albanian tax resident, regardless of what they intended. Their income is theoretically subject to Albanian taxation. The double taxation avoidance agreement between the two countries regulates where and how they are specifically taxed. Identifying this issue early would have allowed for much better planning.<\/p>\n\n\n\n

The sole proprietor reclassified as an employee<\/h3>\n\n\n\n

A foreign consultant operates as a sole proprietor, and 85% of their income comes from a single client. According to Article 12, letter \"\u00e7\" of Law No. 29\/2023, if 80% or more of income is derived from a single client, or 90% or more from fewer than three clients, the tax administration can reclassify it as employment income. <\/p>\n\n\n\n

The consequence: the applicable tax is not 15% on business profit, but the progressive tax rate on employment income, which is 13% up to 2,040,000 ALL and 23% above this limit, according to Article 24 of the law. <\/p>\n\n\n\n

challenge the reclassification, the sole proprietor submits a Self-Employment Status Declaration <\/a>to the regional tax office by March of the following year. This declaration confirms that the relationship is not de facto employment but independent activity. This defense works when the individual provides their own tools, sets their own schedule, and can refuse projects.<\/p>\n\n\n\n

Read also: Read also: Income tax changes, March 2026: what changes for the self-employed, sponsoring businesses, and employers.<\/a><\/p>\n\n\n\n

\n

Every foreign citizen, before making a final decision on legal structure and residency, should evaluate their specific circumstances. Situations vary significantly from one another.<\/p>\n<\/blockquote>\n\n\n\n

\n

Every time there is a tax or financial change that affects your business, we notify you directly by email with a practical explanation.<\/p>\n \n Send me free notifications\n <\/a>\n<\/div>\n\n\n\n

Frequently Asked Questions<\/h2>\n\n\n\n

Do I automatically become an Albanian tax resident if I receive a Registration Certificate as an EU citizen?<\/h3>\n\n\n\n

No. The certificate regulates your legal residence status, not your tax residency. Tax residency depends on the number of days you stay or the location of your main center of interests and is evaluated based on specific circumstances.<\/p>\n\n\n\n

How long is the Certificate of Registration valid, and what happens after five years?<\/h3>\n\n\n\n

The validity of the Certificate is five years from the date of issuance. According to Order No. 94, dated May 6, 2026, EU citizens who have resided legally and continuously in Albania for this period acquire the right to permanent residence. The five-year period is considered continuous, so it is important to keep the document valid and not to have prolonged absences from the territory.<\/p>\n\n\n\n

If my turnover exceeds 14,000,000 ALL during 2026, what happens with previous years?<\/h3>\n\n\n\n

Nothing. Taxation is evaluated year by year. If in 2025 the turnover stayed below the limit, that year closes with 0% tax. Exceeding the limit during 2026 only affects the year 2026.<\/p>\n\n\n\n

How do I know if my country has a double taxation avoidance agreement with Albania?<\/h3>\n\n\n\n

The list of active agreements is published by the General Directorate of Taxes HERE<\/a>. Major European countries, the USA, and Turkey are among those with active agreements. Specific conditions change according to the agreement and the type of income, so every situation requires concrete analysis.<\/p>\n\n\n\n

Am I obliged to pay social contributions as an active partner of an LLC even if I don't draw a salary?<\/h3>\n\n\n\n

Yes. If you perform active functions in the company, the minimum contribution base is the national minimum wage, currently 50,000 ALL gross, regardless of whether you draw a salary.<\/p>\n\n\n\n

Do I need to register with AKPA after receiving a unique permit?<\/h3>\n\n\n\n

Yes. Within ten calendar days from the issuance of the biometric card, you must register in the AKPA employment services system. This obligation was added by VKM 240 of 2026.<\/p>\n\n\n\n

How much should my bank balance be for a residence permit application?<\/h3>\n\n\n\n

No less than 300,000 ALL or the equivalent in EUR, per person, per calendar year. The alternative is proof of monthly income of no less than the national minimum wage, currently 50,000 ALL gross.<\/p>\n\n\n\n

Can I apply for a Registration Certificate without physically coming to Albania?<\/h3>\n\n\n\n

The application is made online, but it requires that you have already entered Albanian territory and have a declared residence address. Physical presence is necessary for residency, not for the application process itself.<\/p>\n\n\n\n

If I am employed by a foreign company and live in Albania, do I pay contributions here?<\/h3>\n\n\n\n

If the foreign employer does not have a branch or registration in Albania, contributions are usually paid in the employer's country. However, if you have Albanian tax residency, the situation requires a specific analysis based on the bilateral agreement with the employer's country.<\/p>\n\n\n

Are you a foreign citizen planning activity in Albania?<\/h3>
<\/p>\n

AlProfit Consult analyzes your specific situation and helps you choose the right structure, manage tax obligations, and remain legally compliant. We communicate in Albanian, Italian, and English.<\/p>\n

\u2714 Analysis of personal tax situation and structure proposal
\n\u2714 Full accounting and tax filing
\n\u2714 Communication with banks and state institution
\n\u2714 Free video consultation if you are outside Albania<\/p>\n

\n Contact Us<\/a><\/p>\n

Phone: +355 69 323 2349<\/strong>  | Email: info@alprofitconsult.al<\/strong>
\n\u2714 Free consultation \u00b7 \u2714 Full confidentiality \u00b7 \u2714 Response within 24h<\/p>\n

\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"

Botuar m\u00eb 22 prill 2026 \u00b7 P\u00ebrdit\u00ebsuar m\u00eb 25 maj 2026 P\u00ebrdit\u00ebsim i fundit, shtuar detajet e Urdhrit Nr. 94, dat\u00eb 6.5.2026 p\u00ebr formatin zyrtar t\u00eb Certifikat\u00ebs s\u00eb Regjistrimit BE. Q\u00ebndrimi dhe pun\u00ebsimi i shtetasve t\u00eb huaj n\u00eb Shqip\u00ebri rregullohen nga nj\u00eb kuad\u00ebr ligjor q\u00eb ndryshon vazhdimisht. N\u00eb prill t\u00eb 2026 dol\u00ebn ndryshime konkrete: procedura […]<\/p>\n","protected":false},"author":2,"featured_media":39548,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[218,100,1],"tags":[920,919,379,376,921,917,922,918,1036,916],"class_list":["post-39481","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regjistrimi-i-biznesit","category-tatime","category-uncategorized","tag-certifikate-regjistrimi-be","tag-kontributet-shoqerore","tag-leje-qendrimi","tag-leje-unike","tag-person-fizik-i-vetepunesuar","tag-rezidenca-fiskale","tag-shtetas-ukrainas-shqiperi","tag-tatimi-0","tag-urdhri-94-2026","tag-vkm-240-2026"],"yoast_head":"\nT\u00eb Huajt n\u00eb Shqip\u00ebri 2026: Rregullat & Tatimi 0%<\/title>\n<meta name=\"description\" content=\"Zbuloni ndryshimet e prillit 2026 p\u00ebr t\u00eb huajt n\u00eb Shqip\u00ebri: VKM 240, Certifikata e Regjistrimit BE dhe Tatimi 0% deri n\u00eb 2029. 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