Albania taxes

Taxation in Albania, Taxes for companies in Albania

Albania is a fast reforming country. They are developing project ease of doing business, other advantages are good location, low taxes and free market access. Companies can has 100% ownership by foreign individuals or companies.

Corporate taxation

From January 1, 2014 taxation for corporations with annual turnover more than 8mio ALL is flat at rate 15%, for companies with turnover between 2 and 8 mio ALL is 7,5%. For smaller companies with annual turnover less than 2 mio ALL rate is fixed at 25.000 ALL and must be paid in first six months of the year.

Taxation of dividends

Dividends are taxed on rate of 10% paid to nonresident. This rate can also be reduced under special tax treaties.

Personal taxation

Albanian residents are taxed on worldwide income at flexible rate from 0% for earnings less than 30.000 and progressive to up to 23%.

VAT

Standard VAT rate in Albania is 20%, reduced rate is 10%

If you have questions about different type of entities in Albania, do not hesitate to contact us.