Advantages of registering a company in Albania
Albania is a small country located in the southeast of Europe in the Balkans, with a population of about 3 million people. Besides, the country is a candidate for membership in the European Union and an active member of the:
- WTO;
- OSCE;
- Council of Europe;
- CEFTA;
- Regional Cooperation Council;
- Black Sea Economic Cooperation;
- Organization of Islamic Cooperation.
The country has 40 DTA agreements with the states of Asia and Europe. Registering a company in Albania is beneficial due to the lowest taxes in Europe and cheap labor.
Economy of Albania
If you are planning to open a business in Albania, then you need to study the main directions of the economy of this country:
- hydroelectric power station;
- the export of chromium, finished food products, fish, medicinal herbs, leather, cotton and textiles, crude oil, asphalt;
- metallurgy, industry (production of chemicals, perfumery and cosmetics industry, mining for export. And also, tobacco, textile, clothing, cement, and logging industry;
Albania has the potential to develop deposits of nickel, copper, coal, alabaster, limestone, peat, basalt, sandstone, and clay. Gas reserves are estimated at 3.014 billion cubic meters and oil reserves at 3 billion barrels.
What are the benefits of opening a company in Albania?
Firstly, fast company registration: in Albania, registration takes about 2 weeks. As a result, the company receives its fiscal code for reporting, as well as a VAT number;
Secondly, the residence of the main persons in the company does not matter. 1 shareholder and 1 director can register a company in Albania;
no secretary or office is required, and the minimum capital is only 1 euro.
Thirdly, the jurisdiction of Albania operates 5 free economic zones. Besides, Albania has several ports.
Business immigration to Albania
Investing in the Albanian economy is one of the easiest ways to immigrate to this country. You can get a permanent residence permit – for this, you need to invest at least 2 million euros in the country’s economy and create at least 100 jobs. Having a permanent residence permit, after five years of uninterrupted residence in Albania, you can obtain Albanian citizenship.
The banking system in Albania
16 commercial financial institutions are operating in Albania. Mostly these are joint and private enterprises, as well as branches of foreign banks. The National Bank of Albania is the only body that issues licenses and controls all banks in the republic. It is quite easy for a foreign entrepreneur to open an account in a bank in Albania, it is enough to register a company and collect the necessary package of documents.
Taxes in Albania
In Albania, income tax is paid only by those persons who are on the territory of the state for 183 days a year or more. The maximum tax rate is 30%.
Personal income tax is levied at a progressive rate: no tax is levied on income up to 30,000 lek (225 euros), 13% on income from 30,001 lek (225.1 euros) to 130,000 lek (975 euros), over 130,000 lek (975 euros) – 23% + 13,000 lek (97.5 euros).
- Source tax is not levied if the recipient is an Albanian taxpayer;
- If in the plan of your enterprise there is a development of production for 10 or more years, you can be exempted from taxes for 4 years. Income tax will be reduced by 60% if you invest the profit in the reinvestment of production;
- Moreover, If your company is engaged in the development of the tourism sector, you are legally exempted from paying taxes for up to 5 years.
VAT exempt in Albania
- services of a financial nature;
- land leasing;
- services provided by non-profit enterprises;
- medical equipment;
- services related to exploration in the oil industry;
- educational services;
- export operations.
Local taxes in Albania (levied in addition to federal)
- for registration with judicial, and tax authorities;
- on the premises;
- for advertising;
- on the environment;
- social tax.
Albanian companies do not have incentives that are tied to the location of the source of investment.
Outcome
Company registration in Albania is fast and has many advantages. Good geographical position, pleasant climate. Albania today has great economic potential and international agreements with the countries of Asia and Europe. As well as low tax rates and concessions for foreigners.
