Geographic position
Two hours by air from Italy, on the Adriatic, with direct links to Southeast European markets.
Doing Business in Albania
Doing business in Albania: the complete 2026 guide.
Taxation, employment costs, company formation and economic indicators — Albania is a decision you weigh with numbers, not promises.
Last updated: September 2026
Get Your Albania Entry Plan arrow_forwardThe fiscal and economic figures on this page were gathered from secondary sources and are being verified against official sources (Albania's tax authority, social security institute, INSTAT, Bank of Albania). Verify them with your advisor or our team before making decisions.
Albania in numbers
- 15%
- Corporate income tax tatime.gov.al
- 20%
- Standard VAT tatime.gov.al
- 8%
- Dividend withholding tax tatime.gov.al
- ~3.6%
- Estimated 2026 GDP growth World Bank, Bank of Albania
- ~€920
- Average gross monthly salary INSTAT
- ~6.3% of GDP
- Foreign direct investment Bank of Albania
Why Albania
Four concrete fundamentals, not slogans.
Competitive operating costs
Employment costs and taxation that remain among the most competitive in Europe (see the tables below).
Available talent
A young workforce, often already fluent in Italian, English or German.
A growing digital economy
A rapidly maturing digital and technology ecosystem, with a growing number of tech and outsourcing companies.
Albania's tax system
The overview below is an operational summary, not personalised tax advice. Always verify it with your accountant or our team before making decisions.
Corporate income tax15%tatime.gov.al
Small business exemption0% up to ALL 14,000,000 in annual turnovertatime.gov.al
Standard VAT20%tatime.gov.al
Reduced VAT6% (accommodation, agritourism, books) · 10% (some agricultural inputs)tatime.gov.al
VAT registration thresholdALL 10,000,000 over a rolling 12 monthstatime.gov.al
Dividend withholding tax8%tatime.gov.al
Withholding on interest, royalties and services15% (unless a tax treaty applies)tatime.gov.al
Personal income tax13% up to ALL 2,040,000 per year · 23% abovetatime.gov.al
Employer social contributions16.7% (15% pension + 1.7% health)issh.gov.al
Employee social contributions11.2% (9.5% + 1.7%)issh.gov.al
Employment costs
Reference figures to estimate the full cost of an employee in Albania.
Average gross monthly salary~ALL 90,000 (~€920)INSTAT
Monthly contribution baseminimum ALL 50,000 · maximum ALL 186,416issh.gov.al
Full cost to the employergross salary + 16.7% in contributionsBased on issh.gov.al data
Setting up a company
GoBusiness handles the entire company formation process in Albania — from choosing the right legal form to registration, tax ID and digital identity.
See the Company Formation service arrow_forwardBank account and corporate obligations
Opening a corporate bank account and keeping up with corporate obligations (bookkeeping, periodic filings, audit where applicable) follow processes and timelines that vary by bank and by legal form. Our Accounting & Tax team handles this part for you.
Residency, permits and incentives
Setting up a company in Albania doesn't require the owner to be a resident. If you plan to relocate or employ foreign staff, dedicated residence and work permits exist. Some sectors may also benefit from specific incentive schemes: these are assessed case by case with our team.
Growing sectors
Tourism, energy, IT and digital services, and light manufacturing are among the sectors most often cited in Albania's recent economic growth. Always verify the picture against your specific sector.
The most common mistakes
- close Underestimating the time needed to align the bank, the tax authority and the business registry.
- close Relying on multiple, disconnected suppliers for formation, tax and legal.
- close Not verifying the right legal form for your case before proceeding.
- close Considering Albania only for labour cost, without a market strategy.
- close Postponing international tax structuring until after the company is set up.
How GoBusiness helps
Every area of this guide maps to a unit in our ecosystem.
The in-depth guides
Each section of this page has a dedicated guide with more operational detail.
How to open a company in Albania arrow_forward The Albanian tax system, explained arrow_forward What hiring in Albania really costs arrow_forward Opening a corporate bank account in Albania arrow_forward Moving to Albania: permits and residence arrow_forward Nearshoring in Albania: when it works and when it does not arrow_forward The Albanian economy in figures arrow_forward
Frequently asked questions
Can a foreign national open a company in Albania?
Yes: there are no restrictions on 100% foreign ownership for most legal forms.
Do I need to be a resident of Albania to open a company?
No. Company formation doesn't require the owner's tax residency to be in Albania.
How long does it take to set up a company?
Timelines depend on the legal form and how complete the documentation is; our team provides a precise estimate case by case.
Does Albania have a double-taxation treaty with Italy?
Yes. How it applies to your specific case should still be assessed with a tax advisor.
What is the VAT rate in Albania?
The standard rate is 20%, with reduced rates for some sectors (see the table above).
Does GoBusiness only handle company formation, or also ongoing management?
We manage the whole lifecycle: formation, tax, legal, HR and technology, within one ecosystem.
Get your Albania entry plan.
Talk to an expert: we'll review the right structure for your case, with up-to-date numbers.