Albania

Last update: 2026-04-29

AL ALLL Albanian

Pros
Competitive 15% corporate tax rate and tax exemptions for small businesses and tech startups.
Strategic Mediterranean location offering affordable real estate and low operational costs for digital nomads.
Minimal state interference in emerging sectors like cryptocurrency and decentralized finance initiatives.

Cons
Pervasive corruption and weak rule of law undermining private property rights and contract enforcement.
Inconsistent physical infrastructure and bureaucratic delays in obtaining necessary permits and utility connections.
Significant brain drain reducing the availability of highly skilled local technical talent.

Personal income

13 → 23%

progressive

Corporate

15%

flat

Capital gains

15%

flat

VAT (standard)

20%

standard rate

i 6.7 DIVIDEND PIPELINE

i 6.3 HOLDING

i 6 VERY LOW TAX

i 5.1 PRIVACY GRADE

i 2 CRYPTO HAVEN

i 2 EASY CITIZENSHIP

─ On this page

01 Will Albania tax what you earn? 02 Will Albania tax what you own? 03 Is it easy to run a company in Albania? 04 Is Albania good for your holding company? 05 What does it cost to come and go from Albania? 06 Will Albania protect your privacy? 07 Is Albania itself a liability? 08 Will you feel free in Albania?

01/08

Will Albania tax what you earn?

●income tax ●tax residency ●territorial system

YES, FAIRLY. Albania taxes personal income at an intermediate 23% and pairs it with a permissive residency test. You won't fall into the net by accident, but once in, the rate isn't trivial.

Personal income taxi

13 → 23%

progressive · 2 brackets

Income simulatori

Income

Tax due

Effective rate

all-in

Marginal rate

Tax residence testi

183days

● 183-day rule

○ Economic interest

○ Family centre

● Habitual abode

○ Extended-stay test

● Just one rule above is enough to make you tax-resident here.

02/08

Will Albania tax what you own?

●capital gains ●wealth tax ●inheritance ●dividends ●interest

YES, BUT LIGHTLY. Capital gains are taxed at a low 15% in Albania, but the country also applies an annual wealth tax (top rate 0.1%). Over a long holding period, the recurring charge can outweigh the realisation tax entirely.

Capital gainsi

15%

flat

Dividend taxi

flat

Interest incomei

15%

flat

Wealth taxi

0.1%

flat

Crypto · tax regimei

Regime

FLAT TAX

Rate

15%

Under Law No. 29/2023 'On Income Tax' (effective Jan 1, 2024), capital gains from the transfer of virtual assets are taxed at a flat rate of 15%. Albania also has a specific regulatory framework for these assets under Law No. 66/2020.

Crypto-to-cryptoi

TAXABLE

each swap counts as a disposal — gains realised at every trade

FATF travel rulei

NOT SIGNED

no information-sharing obligation on VASP transfers

Inheritance systemi

APPLIES

system · heir-based · 5 heir classes

Heir	Top rate	Allowance
Spouse	EXEMPT	—
Children	EXEMPT	—
Siblings	EXEMPT	—
Other relatives	15%	—
Non-relatives	15%	—

03/08

Is it easy to run a company in Albania?

●corporate tax ●criminal liability ●public registry ●VAT ●IP box

YES. Corporate tax in Albania sits at a low 15%, with VAT around it. Setting up and running a company is cheap; the rate won't be what kills a venture here.

Corporate taxi

15%

flat · +5% Taxpayers whose activity is software production and development, registered until 31 December 2023, for periods until 31 December 2025 · +5% Taxpayers whose activity is based on agricultural co-operation and those whose activity is certified as 'agro tourism', in accordance with the respective laws, until 31 December 2029

IP Box · Patent Boxi

NONE

no IP regime · IP income taxed under standard corporate rules

Misuse of corporate assetsi

NO CRIMINAL LIABILITY

Civil Matter / Law No. 9901 'On Entrepreneurs and Companies' Articles 15 and 16

Albania does not have a specific 'Abuse of Corporate Assets' (ABS) criminal offense. Misuse of funds by a sole shareholder in a solvent company is primarily treated as a civil and tax matter. Under Article 16 of Law No. 9901, treating company assets as personal property triggers the 'Piercing of the Corporate Veil,' resulting in the loss of limited liability and making the shareholder personally liable for company debts. While the Criminal Code contains general provisions for 'Abuse of Competencies' (Art. 164) and 'Theft by Abuse of Duty' (Art. 135), these require the element of 'damage to another' or 'lack of consent.' In a solvent sole-shareholder scenario, the owner's consent effectively precludes criminal prosecution for these property crimes unless the act leads to insolvency (Fraudulent Bankruptcy, Art. 193) or constitutes tax evasion (Art. 180).

Shareholders privacyi

PUBLIC

National Business Center (Qendra Kombëtare e Biznesit - QKB)

Directors privacyi

PUBLIC

National Business Center (Qendra Kombëtare e Biznesit - QKB)

Incorporation costi

Limited Liability Company

Shoqëri me Përgjegjësi të Kufizuar

State Registration Fee (QKB) USD 1

Notary and Legal Documentation (Translations & Apostilles) USD 244

Professional Incorporation Service Fee USD 1,218

Total USD 1,462

VAT standard ratei

20%

4 distinct tiers in force

0% 6% 10% 20%

Food & drink

20%

alcohol

Print media

books

Transport

public transit

air

Hospitality

hotels

Digital & telecom

broadcast

Agriculture

10%

farm inputs

04/08

Is Albania good for your holding company?

●treaty network ●participation exemption ●withholding

YES. Albania offers a moderate treaty network (37 signed) paired with a full participation exemption (100% on qualifying dividends and gains). A respectable holding jurisdiction. Not in the NL/LU/SG elite tier on treaty count, but the through-flow is clean.

Territorial systemi

Individuals

WORLDWIDE

Corporates

WORLDWIDE

Individuals: worldwide income taxation regardless of source. Corporates: worldwide.

Participation exemptioni

100%

10% holding · 24 months min

CFC rulesi

NONE

no controlled foreign corporation regime · foreign-source corporate income out of scope

WHT · dividendsi

non-resident outbound

WHT · interest

15%

non-resident outbound

WHT · royalties

15%

non-resident outbound

Tax-haven WHT

—

no punitive rate on record

Treaties signedi

active

Treaties pending

in negotiation

Tax treaty networki

origin · AL 0% > 0% no treaty

⌖

Inspect a country

Hover any country on the map to read its withholding-tax treaty with AL.

Country	Status	Dividends	Interest	Royalties

∅ // no treaties match

05/08

What does it cost to come and go from Albania?

●exit tax ●territorial system ●dual citizenship

SOME. Albania taxes worldwide income while you're resident, but there's no exit tax on the way out. The cost of leaving is mostly paperwork: unrealised gains follow you to the next jurisdiction untouched.

Exit taxi

NONE

no triggers active · residence change tax-free · no deemed-disposal mechanism

Dual citizenship

ALLOWED

naturalised citizens may keep their existing nationality

Citizenship paths

● Residence

● Marriage

● Birth

○ Descent

○ Investment

06/08

Will Albania protect your privacy?

●info exchange ●corporate registries

PARTLY. Albania has signed most of the standard exchange frameworks and operates a public corporate registry. Financial accounts are reported to your home tax authority, and your shareholdings are visible to anyone. Privacy is shallow on both axes.

Multilateral reporting frameworks 3/10 active · 3 pending

CRS

2018

CARF

—

FATCA

—

MLI

2020

BEPS

—

MAAC

2013

GLOBAL FORUM

—

EOIR

—

CRYPTO-CARF

—

CRYPTO TRAVEL RULE

—

07/08

Is Albania itself a liability?

●blacklists ●FATF standing

NO. Albania carries no entries on any major blacklist, though it sits outside FATF membership. Counterparties may apply light extra due diligence, but no formal stigma attaches to dealing with it.

Blacklist exposure Clear everywhere

FATF

grey / black list

non-cooperative list

FRANCE

ETNC list

SPAIN

tax-haven list

PORTUGAL

favourable regimes

BRAZIL

low-tax list

08/08

Will you feel free in Albania?

●press freedom ●crypto ●CBDC ●EU

PARTLY. Albania scores in the middle band of the RSF press-freedom index (rank #80): civil society operates but the boundaries are real. Crypto sits in the standard regulated tier.

Press freedom · RSF indexi

80/180

score 58 · ↑ 19 ranks year-on-year

Central bank digital currencyi

NONE

no announced CBDC program · no pilot · no retail or wholesale prototype on record

Other jurisdictions worth comparing

Picked by similarity of strategic profile to Albania. No editorial ranking — neighbours in the same scoring space.

PROFILE-ADJACENT Same shape, comparable overall friction.

Armenia AM → Kazakhstan KZ → Ukraine UA →

NOTABLY MORE FAVORABLE Same family of strategies, higher total score.

Belgium BE → Romania RO → Paraguay PY →

NOTABLY LESS FAVORABLE Same family of strategies, lower total score.

Faroe Islands FO → Türkiye TR → Sri Lanka LK →