Albania corporate tax - guide for international expansion

Are you considering expanding your business operations to Albania? Understanding the country's corporate tax landscape is essential for making informed decisions about your international business strategy.

Albania offers a competitive corporate tax environment in Southeast Europe, with straightforward compliance requirements and a business-friendly approach. Whether you're establishing a subsidiary or exploring new markets, getting to grips with Albania's tax obligations will help ensure smooth operations from day one.

If you're planning to manage international payments and handle tax obligations efficiently, Wise Business can help streamline your cross-border transactions and local currency payments, making it easier to manage your Albanian business finances.

💡 Learn more about Wise Business

This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Wise Payments Limited, its subsidiaries or affiliates, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

Albania Corporate tax rate in 2025

Albania maintains a competitive corporate income tax rate of 15% for the 2025 tax year. This rate applies to the profits of resident companies and permanent establishments of non-resident companies operating in Albania.¹

The 15% corporate tax rate positions Albania favourably within the European region, making it an attractive destination for international businesses. This rate has remained stable, providing predictability for businesses planning their long-term operations in the country.

Albanian resident companies are subject to corporate income tax on their worldwide income, whilst non-resident companies are taxed only on income derived from Albanian sources. The tax is calculated on the company's taxable profit, which is determined after allowing for deductible business expenses and depreciation allowances.¹

However, certain sectors benefit from reduced rates. Companies engaged in software production and development that registered before 31 December 2023 are subject to a reduced 5% corporate tax rate until 31 December 2025. Similarly, agricultural co-operation activities and certified agro-tourism businesses benefit from a 5% rate until 31 December 2029.²

How to pay corporate tax in Albania

Corporate tax in Albania is administered by the General Directorate of Taxation (GDT), which operates under the Ministry of Finance and Economy. Companies must register with the tax authorities and obtain a tax identification number before commencing operations.³

Filing and Payment Deadlines

Companies must file their annual corporate income tax return by 31 March of the year following the tax year. The tax year in Albania runs from 1 January to 31 December. Along with the annual return, companies must also submit advance payments based on the previous year's tax liability.⁴

Penalties and Interest

Late filing of corporate tax returns incurs penalties and interest charges. Penalties for non-compliance with CIT prepayment deadlines are 10% of the unpaid liability.⁴

Tax Calculation Example

Let's consider a company with an annual turnover of €1.5 million and a profit margin of 10%, resulting in a taxable profit of €150,000. This converts to an approximate ALL 15 million in taxable profit.

At Albania's corporate tax rate of 15%, the annual tax liability would be:

ALL 15,000,000 × 15% = ALL 2,250,000 (approximately €22,500)

When expanding your business to Albania, the right financial tools will make the process smoother. Using a platform like Wise Business makes it easy to manage international finances. A multi-currency account allows businesses to pay for incorporation costs, registration fees, and government taxes in local currency without paying high exchange rate fees.

Get started with Wise Business 🚀

Tax Compliance in Albania

The steps to help your company stay compliant with Albania’s corporate tax policy:⁴

• Register for taxes early: After incorporating your business, register with the General Directorate of Taxes to meet obligations under CIT, VAT, WHT, and payroll taxes. Early registration helps avoid penalties and ensures full legal compliance.

• Understand corporate tax deadlines: The tax year in Albania follows the calendar year.

  • The final Corporate Income Tax (CIT) return is due by 31 March of the following year.
  • Advance payments are made monthly or quarterly based on self-assessment.
  • The final payment is due by 31 March, after deducting prior instalments.
  • Late payments incur a 10% penalty on unpaid liabilities.
  • Dividend withholding tax must be paid by 20 August of the year the financial results are approved, even if dividends have not yet been distributed.

• Stay prepared for audits: Albania’s tax system operates on self-assessment and is subject to regular audits. Tax authorities may review all tax types, and discrepancies lead to an assessment notice, which can be appealed within 30 days. Companies may file a corrected declaration within 36 months, provided no audit has been conducted. The statute of limitations for audits is five years.

Keeping up with corporate tax news and consulting a tax advisor can help businesses, especially SMEs subject to the small business corporate tax rate, stay ahead of compliance updates and audit requirements.

International Expansion to Albania

Albania is one of the most promising destinations for international expansion in the Western Balkans. Its GDP is around USD 24 billion and shows consistent fiscal consolidation efforts. The country has maintained economic stability while steadily reducing its debt-to-GDP ratio to 59% in 2023. Its domestic currency also strengthened by 10% during the same period, reflecting growing investor confidence.⁵

Further, the Albanian government’s liberal and reformist investment climate is a strong pull factor for foreign businesses. The Law “On Foreign Investment” permits 100% foreign ownership and provides explicit legal protections for investors. Its new Strategic Investment Law further enhances these guarantees, which allow for a transparent and predictable business environment.⁶

Through initiatives such as the National Economic Council and the Investment Council, Albania continues to strengthen dialogue with the private sector and international partners.⁶

Plus, its accession talks with the European Union and its membership in NATO and the WTO reinforce its commitment to global economic integration.⁵ Its strategic location, bridging northern and southern Europe and offering access through Adriatic and Ionian ports, directly links major European markets. Multiple free trade agreements with the EU, Turkey, CEFTA, and EFTA countries offer customs-free access to millions of consumers.⁶

The country’s young and educated population adds further appeal. More than half of Albanians are under 35, and over 100,000 students enroll in universities each year, contributing to a dynamic labor force suited for modern industries.⁶

Foreign investors will also find opportunities in high-growth sectors like tourism, real estate, technology, and financial services. The tourism sector alone attracted 11.7 million visitors in 2024 and helped push foreign direct investment to a record €1.16 billion.⁶

Here’s how to start a business in Albania:⁷

1. Begin with market research to understand local demand, competition, and regulations.
2. Develop a solid business plan aligned with Albania’s key growth sectors.
3. Choose a business location and verify your company name through the National Business Center (NBC).
4. Register your company with the NBC and obtain a Tax Identification Number (NIPT) from the General Directorate of Taxes.
5. Open a corporate bank account and set up your corporate tax account to comply with Albania’s tax rate and corporate tax brackets.
6. Maintain detailed records for smooth tax filing and compliance.

Once your business is set up, note that cards are widely accepted in Albania, though cash is still useful for smaller transactions. Learn more about cash or card in Albania.

Incorporation of Business in Albania

To incorporate a business in Albania, investors must register their company with the National Business Center (NBC) via www.qkb.gov.al. The process is easy and designed to simplify foreign and domestic investments.

To complete incorporation, applicants must provide:⁸

• Application form: Includes company name, registered address, business activity, capital, and shareholder details.
• Identification documents: ID or passport copies of the founders and administrators.
• Authorization (if applicable): A notarized power of attorney if a representative completes registration.
• Founding documents: Deed of Incorporation and Statute, defining company's purpose, governance, and capital structure.
• Tax registration: Once incorporated, businesses must register with the General Directorate of Taxes to obtain a Tax Identification Number (NIPT) and open a corporate tax account.

Foreign entities establishing a company in Albania must also submit:

• Company deed and statute: Or equivalent legal documents, with certified translations.
• Proof of registration: Documentation confirming registration in the home jurisdiction.
• Certificate of current status: A recent extract (issued within 90 days) confirming the company’s active legal status.
• Board resolution: Formal approval by the company’s governing body authorizing participation in the Albanian entity.

Business Entities in Albania

The Law on Entrepreneurs and Commercial Companies governs business structures in Albania. The main entity types include:⁹

• Entrepreneur (Sole Trader): A self-employed individual registered for business; the person and the company are legally the same.
• General Partnership: Partners operate under a common name with unlimited liability.
• Limited Partnership: Includes both general partners (with unlimited liability) and limited partners (liable up to their contribution).
• Limited Liability Company (Shpk): Local and foreign investors’ most common business form. Liability is limited to capital contributions, with a minimum share capital of ALL 100.
• Joint Stock Company (Sha): Suits large enterprises or public share offerings, with a minimum capital of ALL 3,500,000 (private) or ALL 10,000,000 (public).

Entrepreneurs often engage a corporate tax associate or consultant to ensure compliance with Albania’s tax laws and reporting obligations.

International corporate tax best practices

Managing corporate tax obligations across multiple jurisdictions requires a strategic approach that balances compliance with efficiency. Here are key practices that can help international businesses navigate complex tax landscapes successfully.

Maintain robust compliance frameworks

Establish clear procedures for meeting all filing deadlines and maintaining accurate financial records in each jurisdiction where you operate. This includes understanding local accounting standards, documentation requirements, and reporting obligations. Regular compliance reviews help identify potential issues before they become costly problems.

Leverage double taxation agreements

Albania has signed double taxation agreements with multiple countries, helping prevent the same income from being taxed twice and often providing reduced withholding tax rates on dividends, interest, and royalties. Understanding these treaties can significantly reduce your overall tax burden.

Implement transfer pricing documentation

For multinational groups, maintaining proper transfer pricing documentation is essential. This includes documenting that transactions between related entities are conducted at arm's length prices, which helps avoid disputes with tax authorities and ensures compliance with international standards.

Plan for substance requirements

Many jurisdictions now require genuine business substance for tax benefits. This means having real business activities, adequate staff, and decision-making processes in the countries where you claim tax residence or benefits.

Take the complexity out of international expansion with Wise Business

Researching corporate tax is a crucial step when expanding your business into a new country. The next step is setting up the financial infrastructure to handle the complexities of operating across borders, from managing multi-currency cash flow to mitigating FX risk.

The Wise Business account provides the financial tools to make your international expansion to Albania efficient and simple. It's the one account for managing your money globally.

With a Wise Business account, you can:

• Pay suppliers and initial fees: Pay suppliers, global payroll, and one-off incorporation costs in the local currency.

• Get paid like a local: Use local account details for 8+ major currencies to easily receive payments from customers or investors.

• Manage your money across borders: Hold and exchange 40+ currencies in one account, always with the mid-market exchange rate and low, transparent fees.

• Streamline your accounting: Integrate with tools like Xero or QuickBooks to simplify tracking your company's international finances.

• Empower your team: Provide multi-user access for your finance team and issue expense cards for international spending.

Wise is designed to support every step of your journey, from paying your first registration fee to receiving international payments and managing your global treasury.

Get started with Wise Business 🚀

FAQs - Corporate tax in Albania

Who is liable for corporate tax in Albania?

All Albanian resident companies are liable for corporate tax on their worldwide income. A company is considered tax resident if it has been incorporated in Albania or has its place of effective management in Albania. Non-resident companies are subject to Albanian corporate tax only on income derived from Albanian sources, typically through a permanent establishment or specific types of Albanian-source income.

Are there any tax incentives for businesses in Albania?

Albania offers several tax incentives to encourage investment and economic development. Companies engaged in software production and development registered before 31 December 2023 benefit from a reduced 5% corporate tax rate until 31 December 2025. Agricultural co-operation activities and certified agro-tourism businesses also qualify for a 5% rate until 31 December 2029.

What is the tax treatment of dividends in Albania?

Dividends distributed by Albanian companies are subject to withholding tax. The standard withholding tax rate is 15%, though this may be reduced under applicable double taxation agreements. Dividends paid to resident companies may qualify for exemptions under certain conditions.

What is the process for registering for corporate tax in Albania?

Companies must register with the General Directorate of Taxation within the required timeframe after incorporation or commencing business activities in Albania. The registration process involves submitting incorporation documents, proof of registered address, and details of business activities. Upon registration, the company receives a tax identification number (NIPT) which must be used for all tax-related communications.

What are the common pitfalls to avoid regarding corporate tax in Albania?

Common mistakes include failing to register for tax purposes within the required timeframe, inadequate record-keeping, missing filing deadlines, and incorrectly calculating taxable income. Additionally, businesses often underestimate the importance of understanding the distinction between resident and non-resident tax treatment, and the specific rules for different types of income.

Sources used in this article:

1. PwC Tax Summaries: Albania Corporate Income Taxes
2. Tax@Hand: New Law on Income Tax Significantly Amends Corporate, Individual, and Withholding Tax (2023)
3. General Directorate of Taxes (DPT): E-Filing Portal (Albanian)
4. PwC Tax Summaries: Albania Tax Administration
5. U.S. Department of State: 2024 Investment Climate Statements - Albania
6. Vision Consulting Albania: Why to Invest in Albania
7. Trade Council: Doing Business with Albania
8. National Business Center (QKB): Business Registration Documentation (Albanian)
9. Invest in Albania: Forms of Enterprises

Sources last checked 27/10/2025