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:
- Reserve your business name via QKB (National Business Center): https://www.qkb.gov.al
- Draft and notarize incorporation documents (statute, shareholder agreement)
- Obtain NUIS (NIPT) – your business tax number
- Open a bank account (no minimum capital for LLCs as of 2025)
- 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.
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