How to Open a Business and Optimize Taxes in Albania as a Foreigner (2025 Guide)

Your Complete Step-by-Step Guide to Launching, Registering, and Saving Taxes in Albania

Albania has quietly become one of Europe’s most attractive destinations for foreign entrepreneurs, and 2025 might just be its tipping point. With low taxes (even 0% for some businesses), fast-track registration, and visa-friendly policies, it’s no surprise that digital nomads, freelancers, and international investors are choosing Tirana as their launchpad.

In this step-by-step guide, we’ll show you exactly how to open a business in Albania as a foreigner, from legal setup to tax optimization, so you can make the move smartly and successfully.

Why More Foreigners Are Starting Businesses in Albania in 2025

Albania has rapidly gained attention as one of the most accessible and tax-friendly countries in the Balkans for entrepreneurs, digital nomads, and investors. Its strategic location, affordable costs, simple bureaucracy, and favorable tax laws are drawing expats and small business owners from Europe, Asia, and beyond.

Whether you’re a freelancer, consultant, IT founder, or investor, Albania allows 100% foreign ownership and offers legal pathways to register a business, live locally, and pay reduced taxes.

Let’s walk through the process, from entry to entrepreneurship.

Overview: Can a Foreigner Start a Business in Albania?

Yes. Albania welcomes foreign business owners.
You do not need an Albanian partner and can own the business 100%.

You can:

• Register as an individual entrepreneur (NIPT)
  
• Set up a limited company (Sh.p.k)
  
• Apply for a business visa or residence permit
  
• Benefit from 0% tax incentives (for qualifying businesses)
  

Step 1: Choose Your Business Structure

Common Options for Foreigners:

Legal Form	Description	Best For
Sh.p.k (LLC)	Limited Liability Company	Startups, small companies
NIPT – Sole Trader	Natural Person with Tax ID	Freelancers, consultants
Branch Office	Extension of a foreign company	Large corporations expanding
Representative Office	Non-commercial operations only	Market research, partnerships

Most foreigners start with an LLC or sole trader registration.

Step 2: Register Your Business in Albania

Documents Required:

• Valid passport (translated & notarized)
  
• Company name (must be unique)
  
• Activity type (IT, consulting, trade, etc.)
  
• Business address in Albania
  
• Albanian tax representative (optional but helpful)
  

Registration Process:

1. Reserve your business name via QKB (National Business Center): https://www.qkb.gov.al
   
2. Draft and notarize incorporation documents (statute, shareholder agreement)
   
3. Obtain NUIS (NIPT) – your business tax number
   
4. Open a bank account (no minimum capital for LLCs as of 2025)
   
5. Register for:
   
   • Social Security (ISS)
     
   • Health Contributions
     
   • VAT (if applicable)
     

2–5 business days
€100–€300 (notary + translation + registration fees)

Step 3: Visa & Residency Options for Entrepreneurs

To legally stay and operate your business in Albania, you must apply for a residence permit.

Visa-Free Entry:

• Most European, U.S., Canadian, and UK citizens can stay up to 90 days visa-free.
  

Residence Permit Options (2025):

Permit Type	Validity	Best For
Business Permit	1 year	Registered business owners
Investor Permit	1–5 years	Entrepreneurs with capital
Self-Employed Permit	1 year	Freelancers & consultants
Family Reunification	1–3 years	Spouse and children

Requirements:

• Proof of registered business (NUIS)
  
• Albanian business address
  
• Bank statement or income proof
  
• Health insurance
  
• Criminal record certificate
  

Apply via e-Albania portal or in-person at migration offices.

Step 4: Understand & Optimize Taxes

Corporate Income Tax (CIT)

Annual Turnover	Tax Rate (2025)
Up to 14 million ALL (~€140k)	0%
Above 14 million ALL	15% on profit

If you register your business under approved activity codes (e.g., IT, software, consultancy), you qualify for 0% CIT.

VAT (Value Added Tax)

• Standard Rate: 20%
  
• Exported services (IT, software): 0% VAT
  
• Small businesses under 10 million ALL revenue: not required to register for VAT
  

Personal Income Tax (Freelancers / Self-Employed):

Type of Income	PIT Rate
Net income as freelancer	15% flat
Salary as director	Progressive: 0%–23%

Dividend Tax:

• If you withdraw profits: 8% dividend tax applies
  

Pro Tip: Reinvest profits to avoid dividend tax and qualify for future incentives.

Local Compliance & Reporting

Even with 0% CIT, you must:

• Maintain basic accounting
  
• File annual tax returns
  
• Pay social/health contributions monthly
  
• Submit financial statements to the Tax Directorate
  

You can outsource accounting to local professionals starting at €50/month.

Banking & Financial Setup

Once registered:

• Open a business bank account (EUR or ALL)
  
• Use it for all company income/expenses
  
• Declare foreign investments and income if applicable
  

Most major Albanian banks support multi-currency accounts.

Can You Operate Remotely?

Yes. You can:

• Open your company remotely via a local attorney
  
• Operate from outside Albania
  
• Appoint a local manager (optional)
  

Some freelancers do this to pay lower taxes while living elsewhere part of the year.

Common Mistakes to Avoid

Registering under the wrong activity code
Forgetting to apply for VAT when required
Skipping social contributions
Not keeping financial records
Assuming 0% CIT means no reporting

Example: Digital Marketing Consultant from Germany

• Registers in Albania as a sole trader
  
• Revenue: €36,000/year
  
• Pays:
  
  • PIT @15% = €5,400
    
  • Contributions = ~€3,200
    
  • No VAT (services exported)
    
• Applies for self-employed residence permit
  
• Lives in Tirana, pays under €9,000 total in taxes—significantly less than in Germany
  

Bonus: Tax Optimization Tips

Choose IT/software consultancy codes for 0% CIT
Use part of your apartment as home office (deductible)
Pay yourself a minimal salary and reinvest profits
Keep earnings below 14M ALL/year to stay in tax-free zone
Hire local staff to qualify for future government grants

Conclusion: Albania Is Open for Business—Yours

Opening a business in Albania as a foreigner in 2025 is:

• Straightforward
  
• Cost-effective
  
• Tax-optimized
  

With just a passport and a plan, you can build your venture, enjoy 0% tax incentives, and even gain residence in one of Europe’s most underrated startup-friendly nations.