Foreign Ownership in Albania: Key Regulations

Published on October 1, 2025 and written by Cyril Jarnias

Albania, a Balkan country experiencing robust economic growth, is increasingly attracting foreign investors through its promising opportunities and favorable regulatory framework. This article provides a comprehensive overview of the regulations governing foreign ownership in Albania, helping you better understand the stakes and possibilities available to international investors in this emerging market.

A Playing Field Open to Foreign Capital

Albania has significantly relaxed its foreign investment legislation in recent years, aiming to attract international capital and stimulate its economic development. The country now offers a largely favorable legal environment for foreign investors, with few restrictions on ownership.

Albania’s Foreign Investment Law guarantees equal treatment between domestic and foreign investors. Foreigners can own up to 100% of shares in an Albanian company in most economic sectors. Additionally, they benefit from protection against expropriation and nationalization, except in exceptional cases of public interest and with fair compensation.

However, some restrictions remain in certain strategic areas. For example, the acquisition of agricultural land is limited for foreigners. Nevertheless, they can lease agricultural land for up to 99 years. In the media sector, foreign participation is capped at 40% of the capital of national broadcasting companies.

Green Light for Investors: A Simplified Approval Process

Albania has implemented a relatively simple and fast foreign investment approval process, designed to facilitate the entry of international capital into its market. In most cases, no prior authorization is required for foreign investments.

Foreign investors can establish a company in Albania by following the same procedures as local investors. Registering a new company can typically be completed within a few days at the National Business Center (QKB). Required documents include:

• The company registration form
• The company’s statutes
• Identification documents of founders and directors
• Proof of share capital payment (if applicable)

For certain regulated sectors like banking, insurance, or telecommunications, specific licenses may be required from the relevant authorities. The Albanian government has established a one-stop shop for foreign investors, the Albanian Investment Development Agency (AIDA), which offers free assistance to navigate administrative procedures.

It is important to note that investments exceeding a certain threshold (generally set at 10 million euros) may qualify for “strategic investment” status, offering additional benefits and expedited administrative processing.

Rights and Obligations: What You Need to Know

Foreign investors in Albania enjoy numerous rights but must also comply with certain obligations. Here is an overview of the main points to remember:

Rights of Foreign Investors

Foreign investors enjoy the same rights and protections as domestic investors. This includes:

• The right to repatriate profits and invested capital
• Protection against expropriation, except for public utility reasons and with fair compensation
• Access to Albanian courts and international arbitration mechanisms in case of disputes
• The right to hire foreign employees, subject to labor and immigration regulations

Additionally, Albania has signed numerous bilateral investment agreements and double taxation treaties, providing extra protection to investors from certain countries.

Obligations of Foreign Investors

In return for these rights, foreign investors must meet certain obligations:

• Comply with Albanian laws and regulations, particularly in tax, environmental, and labor law matters
• Maintain accounting records in accordance with Albanian and international standards
• Obtain necessary licenses and authorizations for regulated activities
• Adhere to foreign exchange rules and report significant currency transactions to the Bank of Albania

It is important to note that foreign investors are subject to the same tax regime as local companies. The corporate tax rate in Albania is currently 15%, with reduced rates for certain sectors like tourism.

Expert Tips for a Successful Investment in Albania

To maximize your chances of success as a foreign investor in Albania, here are some practical tips to keep in mind:

1. Do Your Homework

Thorough market research is essential before starting. Carefully analyze the sector you wish to invest in, local competition, and specific opportunities in Albania. Particularly promising sectors include tourism, renewable energy, agriculture, and information technology.

2. Build Local Partnerships

Although not mandatory, partnering with an Albanian associate can facilitate your establishment and understanding of the local market. Partnerships can help you navigate the country’s cultural and regulatory subtleties.

3. Master the Tax System

The Albanian tax system can be complex for newcomers. It is advisable to consult a local tax expert to optimize your investment structure and ensure compliance with all tax obligations.

4. Take Advantage of Government Incentives

Albania offers various incentive programs to attract foreign investment, particularly in special economic zones and for large-scale projects. Inquire with AIDA about the benefits you might qualify for.

5. Be Patient and Flexible

Despite progress made, the business environment in Albania can sometimes be unpredictable. Be prepared to exercise patience and adaptability in the face of potential challenges, such as bureaucracy or regulatory changes.

Future Prospects: Albania, an Evolving Market

Albania continues to improve its business environment and attractiveness for foreign investors. The country aspires to join the European Union, which should lead to a gradual harmonization of its regulations with European standards.

Reforms are underway to further simplify administrative procedures, strengthen investor protection, and enhance transparency. The Albanian government has also announced its intention to develop new strategic sectors, such as the digital economy and green industries, offering new opportunities for foreign investors.

However, challenges persist, particularly in terms of infrastructure, corruption control, and political stability. Investors must remain vigilant about these issues while capitalizing on the country’s growth potential.

In conclusion, Albania presents a generally favorable regulatory framework for foreign investors, with few ownership restrictions and a simplified approval process. Opportunities are plentiful, especially in growing sectors like tourism, renewable energy, and technology. However, a cautious and well-informed approach remains essential to successfully navigate this evolving environment.