Why Albania?
• Albanian Company Formation (JSC, LLC)
Shareholders: Albanian or foreign citizens or entities (legal persons)
Minimum number: 1 (one)
Registration fee: ALL 100
Length to incorporate: 1 day
• Foreigners buying Real Estate in Albania
There are more and more foreigners interested in purchasing real estate properties in Albania. The question is whether at this time they are able to purchase plots (or at least other real estate properties such as apartments) directly.
a. Actually, foreign individuals or entities are not entitled to purchase and own agricultural land, forest, pasture and meadows. They may lease such land for a period up to 99 years.
b. Foreign individuals or entities may purchase and own plots of land, provided that the value of investment constructed over the plot of land exceeds at least three times the value of such plot. The value of the plot is defined upon a decision of the Council of Ministers. Until realisation of such investment, the foreign individual or entity may use the land under a lease or other agreement.
c. Foreign citizens are able to acquire apartments directly.
Foreign entities or individuals may purchase the agricultural land, forest, pasture and meadows, as well as plots of land, by establishing a company in Albania which, being an Albanian legal entity, may freely purchase and own any type of real estate.• An overview of the Albanian Tax System
Corporate Taxation
Rate : 10%
Applicable : For every business with annual turnover over ALL 8 million, exempt film studios for cinematographic productions that are licensed and funded by the NCC and some other entities.
Individual Taxation
Rate : 10%
Applicable : On personal income from wage, transfer of real estate ownership, gambling, share purchase-sell price difference, interest, rent payments, royalties, dividends and shares of partnerships’ profits etc.
For businesses with annual turnover over ALL 2 million up to ALL 8 million applicable as "Tax on Personal Income from Small Business".
Wages and Taxes
Minimum Wage : ALL 20,000
Income Tax Rate : 10%
Applicable : If monthly wage income is ALL 30,000 or less, the first ALL 10,000 is tax-exempt. If over ALL 30,000, applicable without any top margin.
Social Security
Contributions
Employer : 16,7%
Employee : 11,2%
Base : Minimum and maximum contribution bases are ALL 17,540 and ALL 87,700.
Value Added Tax
General Rate : 20%
Applicable : All businesses that exceed the threshold of ALL 5 million and professional businesses like lawyers, notaries, audits, engineers, hotels etc. despite the annual turnover.
Standard period : 1 calendar month
Other Taxes
Local Tax on Small Business
Applicable : Applicable for every business with annual turnover up to ALL 8 million. The tax rate varies depending on the annual turnover amount, place of business etc.
Local Property Tax : On agricultural land and buildings. The tax rate varies according to the size, location and destination of the assets.
Local Real Estate
Property Sales Tax : Varies according to type, location and purpose of usage of the property.
Other : Excise tax, customs duties, other local taxes and tariffs.
