How much tax does a Ltd. pay in Albania? Find it out!

Published On - 19. November, 2018

Martina Srnovršnik Taxofia News

Taxes in Albania

“Italian entrepreneurs encounter less taxes and bureaucracy in Albania compared to their own country.”  With this words Albania’s Prime Minister, Edi Rama, welcomed in the early months of current year a delegation of 200 companies that are investing or are willing to invest in Albania. Because of low tax rates, Albania is attracting entrepreneurs from all over Europe.

Taxes in Albania are completely harmonised with community principles. Listed below are some information about the main and most important taxes in Albania:

  • Value added tax (TVSH in Albanese): the standard VAT rate in Albania is 20%. All natural or legal persons, whose annual turnover exceed €36.232 or that are carrying out import-export activities, irrespective to their annual turnover, are obligated to register with the competent authorities as VAT taxpayers.
  • Corporate income tax:
    • for turnovers (in Albanian Lek) L0—5.000.000 the “0” rate is applied (lighter tax regime for micro and small enterprises);
    • for turnovers L5.000.000—8.000.000 the 5% rate is applied;
    • for turnovers exceeding L8.000.000 the 15% rate is applied.
  • Social security contributions: both employee in an employment contract with employer situated in Albania and employer are required to pay social security contributions of total 24.5%, of which 15% is payed by the employer and the rest, meaning 9.5% by the employee. Furthermore, both the employer and the employee pay half of the 3.4% of additional social contributions, meaning 1.7% each.

If you want to open a company in Albania, write to info@taxofia.com.

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