Starting a Business in Albania: The Complete Guide

Published on October 1, 2025 and written by Cyril Jarnias

Albania, a Balkan country experiencing robust economic growth, is attracting an increasing number of foreign entrepreneurs eager to benefit from its numerous advantages. With its strategic location at the gates of the European Union, skilled workforce, and competitive operational costs, Albania is establishing itself as a prime destination for business creation. In this article, we will explore in detail the key aspects of setting up a company in Albania, from the reasons for choosing this country to administrative procedures, taxation, and sectoral opportunities.

A Fertile Ground for Entrepreneurship: Why Choose Albania?

Albania has been undergoing a remarkable economic transformation for several years. The country has implemented reforms aimed at improving its business climate and attracting foreign investment. These efforts are bearing fruit, as evidenced by Albania’s steady progress in the World Bank’s Doing Business ranking.

An expanding market: With sustained economic growth (averaging around 4% per year in recent years) and a young, dynamic population, Albania offers a rapidly developing domestic market. Furthermore, its strategic geographical position makes it an ideal gateway to the markets of the Balkans and the European Union.

Attractive operational costs: Albania stands out for having some of the lowest labor costs in Europe, while boasting a skilled and multilingual workforce. Real estate and energy costs are also highly competitive, allowing businesses to significantly reduce their operating expenses.

Advantageous tax framework: The Albanian government has implemented an attractive tax policy for businesses, notably featuring a corporate income tax rate of 15%, one of the lowest in the region. Additional tax incentives are offered in certain priority sectors and special economic zones.

Available Legal Structures: Choosing the Right Form for Your Project

Albanian company law offers several legal forms for entrepreneurs wishing to establish themselves in the country. Here are the main options to consider:

The limited liability company (SHPK): This is the most popular form among foreign investors. It offers great flexibility and limits the liability of partners to their contributions. The minimum required capital is 100 leks (less than one euro), making it accessible to all entrepreneurs.

The joint stock company (SHA): This structure is suitable for larger-scale projects requiring significant capital. It facilitates easier fundraising through the issuance of shares. The minimum capital is set at 3.5 million leks (approximately 28,000 euros).

The branch: Foreign companies can also opt to open a branch in Albania. This option allows maintaining the legal link with the parent company while benefiting from a local presence.

The representative office: This lightweight structure is ideal for companies wishing to explore the Albanian market without engaging in direct commercial activity. It allows for an official presence in the country to conduct market research or serve as a liaison function.

It is important to note that Albanian legislation allows 100% foreign ownership of a company’s capital, except in certain strategic sectors where restrictions may apply.

Competitive Taxation: Optimize Your Establishment in Albania

Albania has implemented an attractive tax regime for businesses, aiming to stimulate investment and job creation. Here are the main elements to know:

Corporate tax: The standard rate is 15%, one of the lowest in Europe. Small businesses with an annual turnover below 14 million leks (approximately 115,000 euros) benefit from a reduced rate of 0%.

VAT: The standard rate is 20%. Reduced rates of 6% and 10% apply to certain goods and services, particularly in the tourism sector.

Personal income tax: It is applied according to a progressive scale ranging from 0% to 23%. Dividends are taxed at a flat rate of 8%.

• Corporate tax exemption for 5 years for companies operating in special economic zones
• Tax deductions for investments in priority sectors (agriculture, tourism, renewable energy)
• Tax credit for job creation

Tax treaties: Albania has signed double taxation avoidance agreements with more than 40 countries, facilitating international exchanges and optimizing the taxation of foreign companies.

It is important to note that the Albanian tax system is regularly evolving as part of the harmonization process with European standards. It is therefore recommended to consult a local tax expert for the most up-to-date advice.

Creating Your Company in Albania: A Simplified Process

Albania has significantly simplified its administrative procedures in recent years, making business creation faster and more accessible. Here are the main steps to follow:

1. Choose a name for your company: Check name availability with the National Business Center (QKB). Name reservation is valid for 30 days.

2. Prepare the incorporation documents: Draft the company statutes and the deed of incorporation. These documents must be in Albanian and notarized.

3. Open a bank account: Deposit the minimum share capital into an Albanian bank account.

4. Register with the QKB: Submit your complete file to the National Business Center. Registration can be done online or in person. Processing time is generally 24 hours.

5. Obtain a tax identification number: Registration with the QKB automatically assigns you a tax identification number (NIPT).

6. Register for social security and health insurance: This step is mandatory if you plan to hire employees.

7. Obtain specific licenses: Depending on your business sector, additional permits may be required.

The entire process can be completed in about one week, placing Albania among the fastest countries in Europe for business creation.

Albania vs. Offshore Jurisdictions: A Credible Alternative

Although Albania is not considered a traditional offshore jurisdiction, it offers many advantages that make it an interesting alternative to classic tax havens:

Stability and international recognition: Unlike some controversial offshore jurisdictions, Albania benefits from a positive image on the international stage. Its candidate status for the European Union strengthens its credibility and regulatory stability.

Attractive but not aggressive taxation: Albania offers advantageous taxation while remaining within international norms. This balanced approach allows for tax optimization without the risk of being considered a tax evasion structure.

Competitive operational costs: The costs of creating and managing a company in Albania are generally lower than those in traditional offshore centers.

Access to the European market: Albania’s geographical position and trade agreements offer privileged access to the EU market, an advantage that few offshore jurisdictions can claim.

Transparency and compliance: Albania has strengthened its regulations regarding anti-money laundering and tax evasion, ensuring better compliance with international standards.

Compared to popular offshore jurisdictions like Cyprus, Malta, or the British Virgin Islands, Albania stands out for its balance between tax benefits and operational legitimacy.

Social Obligations in Albania: A Framework Favorable to Employers

Albanian labor law, although constantly evolving to align with European standards, remains relatively flexible and favorable to employers. Here are the main points to know:

Employment contracts: Fixed-term (FTC) and indefinite-term (ITC) contracts are permitted. FTCs can be concluded for a maximum duration of 3 years.

Working hours: The legal working week is 40 hours. Overtime is limited to 200 hours per year and must be paid at a minimum premium of 25%.

Paid leave: Employees are entitled to a minimum of 4 weeks of paid leave per year.

Minimum wage: It is set at 30,000 leks per month (approximately 245 euros) in 2025, one of the lowest in Europe.

• Employer contribution: 16.7% of gross salary
• Employee contribution: 11.2% of gross salary

Dismissal: Dismissal procedures are relatively flexible, with notice periods ranging from 2 weeks to 3 months depending on seniority.

It is important to note that the Albanian government actively encourages vocational training and youth employment, with tax incentives for companies investing in these areas.

Opening a Corporate Bank Account in Albania: Key Steps

Opening a bank account is a crucial step in creating your company in Albania. Here is the procedure to follow:

1. Choose a bank: Albania has several reputable international banks (Raiffeisen, Intesa Sanpaolo, etc.) as well as local institutions. Compare offers and banking fees.

• Company registration certificate
• Company statutes
• Minutes of appointment of directors
• Identification documents of directors and ultimate beneficial owners
• Proof of company address
• Business plan (often requested for new companies)

3. Schedule an appointment with the bank: Most banks require an in-person meeting to open the account.

4. Undergo KYC (Know Your Customer) checks: Albanian banks apply strict anti-money laundering procedures. Be prepared to provide detailed information about the source of funds and the intended business activity.

5. Sign banking documents: Once the file is approved, you will need to sign the account opening contract and general terms and conditions.

6. Make the initial deposit: Some banks require a minimum deposit to activate the account.

The timeframe for opening a corporate bank account in Albania can range from a few days to several weeks, depending on the complexity of your file and the chosen bank.

Promising Sectors in Albania: Where to Invest?

The Albanian economy offers numerous investment opportunities in growing sectors. Here are the most promising areas:

Tourism: With its 360 km of Mediterranean coastline and rich cultural heritage, Albania is experiencing a tourism boom. Investments in hospitality, catering, and tourism services are particularly sought after.

Information technology: The Albanian government has made digital development a priority. Companies specializing in software development, IT outsourcing, and online services find fertile ground in Albania.

Renewable energy: Albania has strong potential in hydroelectric, solar, and wind energy. Tax incentives are offered for investments in this sector.

Agriculture and agri-food: The modernization of the agricultural sector offers many opportunities, particularly in organic production and food processing.

Manufacturing industry: Competitive labor costs and proximity to the EU make Albania an attractive destination for light industry, particularly textiles and footwear.

Financial services: The banking and insurance sector is expanding rapidly, with growing demand for innovative financial services.

Real estate: The Albanian real estate market is experiencing strong growth, particularly in tourist areas and major cities.

Recruiting in Albania: Access a Pool of Qualified Talent

Recruiting in Albania presents numerous advantages for foreign companies. Here’s how to optimize your recruitment process:

Benefit from a skilled and multilingual workforce: Albania has a young, well-educated population, with a high rate of higher education graduates. Proficiency in foreign languages, particularly English and Italian, is a major asset.

• Albanian job sites: duapune.com, njoftime.com
• Professional social networks: LinkedIn is increasingly used
• Specialized recruitment agencies
• Partnerships with universities for recruiting recent graduates

Respect the specificities of Albanian labor law: Although flexible, Albanian labor law has certain particularities. It is recommended to consult a local expert to ensure the compliance of your contracts and procedures.

Offer attractive benefits: Although salaries are generally lower than in Western Europe, Albanian employees value additional benefits such as continuing education, international career opportunities, or performance bonuses.

Invest in training: The Albanian government offers tax incentives for companies that invest in employee training, an opportunity to seize for developing your team’s skills.

Consider remote work: Albania has good internet infrastructure, allowing for telecommuting solutions for certain positions, thereby expanding your recruitment pool.