Investing in Albania: Discover Growth Opportunities

Invest Albania

Albania is a country experiencing rapid development in both the production and services sectors. Moreover, there are many reasons to invest in Albania. Thanks to its favorable geographic location and trade agreements, investing in Albania presents a strategic opportunity.

A Strategic Geographic Position

Albania boasts four main ports: Durres, Vlora, Saranda, and Shengjin. As a result, these ports provide direct access to European and Balkan markets, making the country an ideal choice for business expansion. Additionally, Albania is in negotiations to join the European Union, further increasing the attractiveness of investments in the region for many reasons.

Setting up a Business in Albania

Free Trade Agreements

Investing in Albania means benefiting from numerous free trade agreements. For example, these include:

• Regional agreements: Kosovo, North Macedonia, Serbia, Bosnia and Herzegovina, Montenegro, Croatia, and Moldova are among the reasons to invest in Albania.
• International agreements: Albania is a member of EFTA, the European Free Trade Association, with countries like Switzerland, Norway, Liechtenstein, and Iceland. Furthermore, it has a free trade agreement with Turkey.

Since 2021, the country has been part of the Open Balkan project, an initiative promoting free movement of people, goods, capital, and services among the signatory countries, which are great reasons for investment.

Setting Up a Company in Albania

Corporate Aspects:

• Company registration takes just one day and does not require a notary.
• The minimum capital for an LLC (Sh.p.k) is only 1 euro.
• An LLC can be established by one or more shareholders, who are only liable up to their subscribed share capital.
• Contributions can be in cash or goods, but not services. Among the reasons to invest in Albania, ease of company setup is significant.

Corporate Benefits:

• Simplified procedures and reduced costs.
• In particular, access to incentives tailored to key sectors.

Tax Benefits

The Albanian tax system offers competitive advantages, one of the reasons to consider investing in Albania.

Corporate Taxation:

• 0% for businesses with a turnover of up to 14 million ALL (approximately €114,000).
• 15% for businesses exceeding this threshold.
• 5% for companies in software development, agritourism, or agricultural cooperatives.

Dividends:

• Dividends are taxed at 8%.

VAT:

• Standard rate at 20%.
• However, a reduced rate of 6% applies to specific sectors such as agritourism, public transport, and publishing.

Progressive Income Tax for Employees:

• 0% for incomes up to 30,000 ALL.
• 13% for incomes between 30,001 and 150,000 ALL.
• 23% for incomes above 150,000 ALL.

Competitive Labor Costs

The minimum gross monthly salary in Albania is 45,000 ALL (approximately €450), with a total employer cost of around €555. As a result, Albania offers some of the lowest labor costs in Eastern Europe, reasons to invest in Albania. This provides significant savings for investors.

The average gross salary for managers ranges between €1,000 and €1,300, ensuring excellent value for money. Moreover, Albanian employees are known for their productivity, particularly in the business services sector. These factors are also great reasons for considering investments in Albania.

Albanian Labor Code and the cost

Conclusion

Investing in Albania is a unique opportunity due to its economic growth, tax incentives, and low operating costs. In summary, its strategic position at the heart of the Balkans and access to European markets are prime reasons to invest in Albania, making it a winning choice for business expansion.