Albania Tax Rates


TAX RATES > Albania Tax Rates

Go to Tax Rates Home Page



Albania personal Income Tax

Albania personal income tax rate is a flat 10%.

These categories of taxpayers are not required to file the Annual Tax Return:

- self-employed individuals that realize an annual turnover up to Leke 2,000,000 (approximately EUR 14,800);
- individual taxpayers that realize an annual income up to Leke 200,000 (approximately EUR 1,480).

However, the Annual Tax Return may be voluntarily filed by the above indicated persons, as well as by other taxpayers who do not have the obligation to file it. The persons that undertake to file the Annual Tax Return will benefit from the deductible expenses scheme provided by the Draft Law.

According to the deductible expenses scheme established by the Draft Law, certain expenses are considered as tax deductible for purposes of calculating the taxable income. Persons realizing an annual income less than Leke 800,000 (approximately EUR 6,000) are entitled to benefit from such scheme.

In Albania, personal and corporate tax rates are both 10%. Now there are no progressive taxes as before, which were going up to 30%. Albania residents are taxed on income generated both in Albania and outside Albania. Nonresident taxpayers are subject to Albania tax only on their activities in Albania, income generated out of Albania is not subject to Albania income tax.

If a resident has a house in Albania, or he/she has stayed in Albania for more than 183 days in a calendar year then he/she has to pay Albania tax. Joint tax filing is not permitted in Albania, each individual must file taxes separately.

Albania Tax Year - Albania Tax year is the calendar year.
Wealth Tax in Albania - Albanian taxpayers are not subject to a wealth tax.
Albania Capital Gains Tax - Capital gains in Albania are taxed at the standard tax rates of 10%.
Albania Inheritance Tax - Gifts and inheritance are subject to the same 10% flat tax rate in Albania.
Net Worth Tax - There is no net worth tax in Albania.

Real Property Tax in Albania

Tax on real estate in Albania differs from city to city. New construction projects, real estate, also land used for agricultural activities are subject to real property tax in Albania. New construction jobs are taxed between 1% - 4%, the rate is relatively high in capital Tirana (between 2-4%), and it's 1-3% in other cities. Depending their form of use, land used for agricultural activities are taxed per hectare, the tax varies according the usage type of the land. Certain projects are exempt from tax.


Albania Corporate Tax Rate

Albania corporate tax rate is a flat 10%.

Taxpayers subject to local tax on small businesses with an annual turnover between ALL 2 million and ALL 5 million are subject to personal income tax of 10% on net profit. If a company is effectively managed in Albania, then the business is accepted as resident and pays Albanian company tax. A legal entity or a partnership who has a permanent establishment are also considered tax payers and they pay Albania corporate tax.

Albania Tax on Capital Gains

Capital gains deriving from the sale of immovable property are treated as business income and taxed accordingly at 10%. Where after the sale of immovable property there is a loss, it can be carried forward for three years, unless 25% or more of the selling company's share capital has been transferred.

The donation of Albanian property is treated the same as sale of the property, and is taxed accordingly at 10% of the difference between the fiscal price of the donated property and the purchase price. In both cases, the seller/donor of the property will be liable to pay the property transfer tax before transferring it to the buyer and registering it at the respective offices.

The transfer tax payable is about €7 ($9.27) a square metre for residential buildings and €14 for commercial buildings in Tirana while it is less for other cities.

Tax Credits
A tax relief may be allowed under an applicable tax treaty.

Withholding Tax on Dividends
If there is no tax treaty which can reduce the rate, dividends which are paid to nonresidents are subject to a 10% dividend withholding tax.

Withholding Tax on Interest Payments
If made to a nonresident, an interest payment is taxable in Albania, and is taxed at 10% unless the tax rate is reduced under a tax treaty.

Withholding Tax on Royalty Payments
If made to nonresidents, royalty payments are also subject to the same 10% tax rate, if there is no applicable tax treaty between the two countries. Certain payments and fees are subject to withholding tax, including rental payments, certain service fees and fees paid for management.

Dividend Tax

Taxation of dividends in Albania is the same as other taxable income at the standard 10% tax rate, unless there is a tax treaty. Some exemptions exist on the payment of dividend tax:

If the party distributing the dividend or earnings are subject to Albanian corporate tax and if the other party hold at least the 25% of the paying party, then the tax is waived. This tax exemption is available only for the resident company or partnerships. Holdings in foreign countries cannot take advantage of this tax exemption.

Property tax

The taxpayer of immovable property in Albania may be a legal or physical person, who owns land and buildings in Albania. Real estate taxation is applicable to buildings and to agricultural land at a variable rates subject to the size in square metres and the municipality that the property is based.

The government introduced a new law recently that entered into force on June 6 2010: "On the right of privatisation of used state-owned land and the tax levied on the right of use of state-owned land", defining the tax payable by resident and non-resident individuals and legal entities for the use of state-owned construction land. Lease payments will no longer be applicable for the use of such land unless it is used for tourism or investment and it has illegally constructed buildings that are in the process of legalisation. The applicable rate is 10% of the value of the land.

Tax Penalties

Employers are now obliged to notify the tax authorities at least 24 hours before the first day of employment of new employees, as opposed to the former 48-hours requirement. Non-compliance lead to penalties of L100,000 and L50,000 for VAT registered and VAT non-registered taxpayers, respectively.

Moreover, higher penalties are provided for where there is non-compliance in administrative matters and more specifically related to the use of fiscal equipment and the issue of fiscal coupons. The penalties for each category are listed in the tables.

Equally, the tax authorities reserve the right to confiscate tax documentation and data storage equipment from taxpayers where they have reliable and trustworthy information relating to tax avoidance by the taxpayer.

Albania VAT (Value Added Tax) Rate

Albania VAT rate is 20%. The export of goods and services is exempt from VAT, while the import of goods is taxed based on the reference list (a minimum pricelist approved by government and subject to change from time to time).

At the beginning of 2011, custom duties with EU countries will be eliminated, though they will continue to exist, at variable percentages, with other countries

On January 1 2010, the provisions on the decrease of the value added tax (VAT) registration threshold in Albania came into effect, after a decision of the Council of Ministers on October 21 2009. Physical or legal persons carrying out commercial activity in Albania are obliged to register for VAT purposes where their annual turnover in a calendar year is more than L5 million. Formerly, the VAT registration threshold was L8 million.

The general VAT rate for the taxable supply of goods and services or imports is 20%. All individuals and legal entities required to be registered or registered for VAT are taxable.

Those subject to VAT payments are:

- Every physical person or legal entity providing services, which are more than L2 million (as of April 2010)
- Every physical person or legal entity, which exceeds an annual turnover of L5million (as of January 2010)
- Every physical person or legal entity which imports goods (independently from the annual turnover)

Income Tax Rate

Corporate Tax Rate

Sales Tax / VAT Rate




Last Update:  Nov 2010

(This page may show previous year's tax rates. Always check last update time)

Albania Tax RatesALBANIA
Algeria Tax RatesALGERIA
Andorra Tax RatesANDORRA
Angola Tax RatesANGOLA
Anguilla Tax RatesANGUILLA
Antigua & Barbuda Tax RatesANTIGUA & BARBUDA
Argentina Tax RatesARGENTINA
Aruba Tax RatesARUBA
Australia Tax RatesAUSTRALIA
Austria Tax RatesAUSTRIA
Azerbaijan Tax RatesAZERBAIJAN
Bahamas Tax RatesBAHAMAS
Bahrain Tax RatesBAHRAIN
Bangladesh Tax RatesBANGLADESH
Barbados Tax RatesBARBADOS
Belarus Tax RatesBELARUS
Belgium Tax RatesBELGIUM
Belize Tax RatesBELIZE
Benin Tax RatesBENIN
Bermuda Tax RatesBERMUDA
Bosnia & Herzegovina Tax RatesBOSNIA & HERZEGOVINA
Botswana Tax RatesBOTSWANA
Brazil Tax RatesBRAZIL
British Virgin Islands Tax RatesBRITISH VIRGIN ISLANDS
Brunei Tax RatesBRUNEI
Bulgaria Tax RatesBULGARIA
Burkina Faso Tax RatesBURKINA FASO
Burma Tax RatesBURMA
Burundi Tax RatesBURUNDI
Cambodia Tax RatesCAMBODIA
Cameroon Tax RatesCAMEROON
Canada Tax RatesCANADA
Cape Verde Tax RatesCAPE VERDE
Cayman Islands Tax RatesCAYMAN ISLANDS
Central African Republic Tax RatesCENTRAL AFRICAN REP.
Chad Tax RatesCHAD
Chile Tax RatesCHILE
China Tax RatesCHINA
Colombia Tax RatesCOLOMBIA
Comoros Tax RatesCOMOROS
Democratic Republic of Congo Tax RatesCONGO, DEM. REPUBLIC
Republic of Congo Tax RatesCONGO, REPUBLIC OF
Cook Islands Tax RatesCOOK ISLANDS
Costa Rica Tax RatesCOSTA RICA
Cote d'Ivoire Tax Rates Ivory CoastCOTE D'IVOIRE
Croatia Tax RatesCROATIA
Cuba Tax RatesCUBA
Curaçao Tax Rates - Curacao Tax RatesCURAÇAO
Cyprus Tax RatesCYPRUS
Czech Republic Tax RatesCZECH REPUBLIC
Denmark Tax RatesDENMARK
Djibouti Tax RatesDJIBOUTI
Dominica Tax RatesDOMINICA
Dominican Republic Tax RatesDOMINICAN REPUBLIC
Ecuador Tax RatesECUADOR
Egypt Tax RatesEGYPT
El Salvador Tax RatesEL SALVADOR
Equatorial Guinea Tax RatesEQUATORIAL GUINEA
Estonia Tax RatesESTONIA
Fiji Tax RatesFIJI
Finland Tax RatesFINLAND
France Tax RatesFRANCE
French Polynesia Tax RatesFRENCH POLYNESIA
Gambia Tax RatesGAMBIA
Georgia Tax RatesGEORGIA
Germany Tax RatesGERMANY
Ghana Tax RatesGHANA
Gibraltar Tax RatesGIBRALTAR
Greece Tax RatesGREECE
Grenada Tax RatesGRENADA
Guatemala Tax RatesGUATEMALA
Guernsey Tax RatesGUERNSEY
Guyana Tax RatesGUYANA
Honduras Tax RatesHONDURAS
Hong Kong Tax RatesHONG KONG
Hungary Tax RatesHUNGARY
Iceland Tax RatesICELAND
India Tax RatesINDIA
Indonesia Tax RatesINDONESIA
Iran Tax RatesIRAN
Ireland Tax RatesIRELAND
Isle of Man Tax RatesISLE OF MAN
Israel Tax RatesISRAEL
Italy Tax RatesITALY
Ivory Coast Tax RatesIVORY COAST
Jamaica Tax RatesJAMAICA
Japan Tax RatesJAPAN
Jersey Tax RatesJERSEY
Jordan Tax RatesJORDAN
Kazakhstan Tax RatesKAZAKHSTAN
Kenya Tax RatesKENYA
Kuwait Tax RatesKUWAIT
Latvia Tax RatesLATVIA
Lebanon Tax RatesLEBANON
Lithuania Tax RatesLITHUANIA
Luxembourg Tax RatesLUXEMBOURG
Macau Tax RatesMACAU
Madagascar Tax RatesMADAGASCAR
Madeira Tax RatesMADEIRA
Malawi Tax RatesMALAWI
Malaysia Tax RatesMALAYSIA
Maldives Tax RatesMALDIVES
Malta Tax RatesMALTA
Mauritius Tax RatesMAURITIUS
Mexico Tax RatesMEXICO
Moldova Tax RatesMOLDOVA
Monaco Tax RatesMONACO
Montenegro Tax RatesMONTENEGRO
Morocco Tax RatesMOROCCO
Mozambique Tax RatesMOZAMBIQUE
Myanmar Tax RatesMYANMAR
Namibia Tax RatesNAMIBIA
Nepal Tax RatesNEPAL
Netherlands Tax RatesNETHERLANDS
Netherlands Antilles Tax RatesNETHERLANDS ANTILLES
New Zealand Tax RatesNEW ZEALAND
Nicaragua Tax RatesNICARAGUA
Nigeria Tax RatesNIGERIA
Norway Tax RatesNORWAY
Oman Tax RatesOMAN
Pakistan Tax RatesPAKISTAN
Palestine Tax RatesPALESTINE
Panama Tax RatesPANAMA
Papua New Guinea Tax RatesPAPUA NEW GUINEA
Paraguay Tax RatesPARAGUAY
Peru Tax RatesPERU
Philippines Tax RatesPHILIPPINES
Poland Tax RatesPOLAND
Portugal Tax RatesPORTUGAL
Puerto Rico Tax RatesPUERTO RICO
Qatar Tax RatesQATAR
Romania Tax RatesROMANIA
Russia Tax RatesRUSSIA
Rwanda Tax RatesRWANDA
Saudi Arabia Tax RatesSAUDI ARABIA
Senegal Tax RatesSENEGAL
Serbia Tax RatesSERBIA
Sierra Leone Tax RatesSIERRA LEONE
Singapore Tax RatesSINGAPORE
Slovakia Tax RatesSLOVAKIA
Slovenia Tax RatesSLOVENIA
South Africa Tax RatesSOUTH AFRICA
South Korea Tax RatesSOUTH KOREA
Spain Tax RatesSPAIN
Sri Lanka Tax RatesSRI LANKA
Swaziland Tax RatesSWAZILAND
Sweden Tax RatesSWEDEN
Switzerland Tax RatesSWITZERLAND
Syria Tax RatesSYRIA
Taiwan Tax RatesTAIWAN
Tanzania Tax RatesTANZANIA
Thailand Tax RatesTHAILAND
Tunisia Tax RatesTUNISIA
Turkey Tax RatesTURKEY
Turks and Caicos Tax RatesTURKS AND CAICOS
Uganda Tax RatesUGANDA
Ukraine Tax RatesUKRAINE
United Arab Emirates Tax RatesUNITED ARAB EMIRATES
UK Tax Rates United KingdomUNITED KINGDOM
US Tax Rates United StatesUNITED STATES
Uruguay Tax RatesURUGUAY
Uzbekistan Tax RatesUZBEKISTAN
Vanuatu Tax RatesVANUATU
Venezuela Tax RatesVENEZUELA
Vietnam Tax RatesVIETNAM
West Bank Tax RatesWEST BANK
Yemen Tax RatesYEMEN
Zambia Tax RatesZAMBIA
Zimbabwe Tax RatesZIMBABWE

Tax Rates
Tax Rates
Global Average Tax Rates
Historical Tax Rates
Tax News
Tax Videos
Tax Articles
IRS Tax Forms

© 2009-2012
2011 - 2012 Tax Rate Guide and Tax Help Website