Tax in Albania

Who is the tax authority and where do filings live?

Albania's Drejtoria e Pergjithshme e Tatimeve (DPT, General Directorate of Taxes), under the Ministry of Finance, administers Albania's tax system [SC1]. Customs administered by Drejtoria e Pergjithshme e Doganave. Filings flow through e-Tax. Substantive law: Income Tax Law 29/2023 (effective 1 January 2024 replacing prior framework), VAT Law 92/2014, Tax Procedure Law, and successive amendments. Albania is an EU candidate country (negotiations opened 19 July 2022).

What is the tax year and when are returns due?

Individual tax year is the calendar year. Personal returns due 31 March of year following tax year [SC1]. Wage tax withheld monthly. Corporate annual returns due 31 March. VAT monthly by 14th of following month.

Who is an Albanian tax resident?

Under Income Tax Law 29/2023, an individual is tax resident if (a) maintaining permanent residence in Albania, OR (b) physically present 183+ days in any 12-month period, OR (c) being an Albanian state employee abroad [SC2]. Residents taxed on worldwide income.

What are the personal income tax rates?

Post-2024 reform two brackets: 13 percent up to ALL 50,000 monthly; 23 percent above [SC1]. Investment income 8 percent WHT (final). Capital gains 15 percent flat.

How does Albania's corporate tax work?

CIT 15 percent for resident companies [SC2]. Reduced 5 percent for IT/agritourism/qualifying SMEs (annual turnover under ALL 14m); 0 percent for agricultural cooperatives. Withholding on non-resident dividends 8 percent (treaty rates apply). Pillar Two not yet transposed (EU candidate progressively aligning). Tax losses 5 years.

What about VAT?

Standard VAT 20 percent under VAT Law 92/2014 [SC3]. Reduced 6 percent on accommodation, agritourism, e-textbooks. Zero-rated on exports. Registration above ALL 10m turnover.

How are cryptoassets taxed?

Albania adopted dedicated cryptoasset legislation under Law 66/2020 'On Financial Markets Based on Distributed Ledger Technology' (effective 2020) establishing CASP licensing under Albanian Financial Supervisory Authority (AFSA) [SC2]. Capital gains on cryptoasset disposals 15 percent flat. Mining and staking are business income.

What is the treaty network and what are the audit triggers?

Albania has approximately 45 active double tax treaties [SC4]. EU candidate progressively transposing EU directives. MLI signed 2017. Standard SOL 5 years; extended for fraud.

What are the common penalties and pitfalls for foreigners?

Penalty framework: late filings, failure to file, incorrect declarations [SC5]. Common pitfalls: (1) post-2024 ITL 29/2023 reform; (2) two-bracket 13/23 PIT structure; (3) reduced 5 percent CIT for IT/agritourism/qualifying SMEs; (4) Law 66/2020 dedicated cryptoasset framework with AFSA CASP licensing; (5) EU candidate progressive aligning; (6) Pillar Two not transposed; (7) ~45 DTCs + MLI signed 2017; (8) VAT 20 percent registration ALL 10m; (9) SAA framework with EU; (10) Western Balkans regional context.