Fiscal Incentives
€1 EURO Contract: Albanian government offers businesses a €1 EURO per year lease of state owned property for investments.
- Details :
- €1 EURO lease of government property yearly; 30 year lease term with renewal available
- Reach out to AIDA for list of over 1,500 properties, assets, and sites applicable to business endeavors
- Tel: +355 (0)42 251 001, Email: info@aida.gov.al
- Eligibility requirements :
- 2.5 million EURO investment or 50 jobs minimum for application
- Requires business plan submission and subsequent yearly analysis oversight by AIDA; AIDA facilitates business plan setup
Tax advantages
- Albania offers investors in the automotive manufacturing sector a reductions in the corporate income tax rate from 15% to 5%
- 0% VAT re-exports (i.e., non-Albanian goods that were imported being processed through business operations to be later exported to another destination)
- Exemption from VAT on imports of machinery and other manufacturing related equipment
Special Economic Zones
Albania’s Technical and Economic Development Areas (TEDA) promote foreign direct investment through benefits including tax exemptions, deductibles, and location advantages. Recent legislation of the three zones has laid the foundation for future investment opportunities once these locations are formally established and active.
Spitalla, Kopliku, & Tirana
- Spitalla
- Located near Durres, nearby Adriatic sea port, handles nearly 4 tons of shipments annually
- Kopliku
- Located in the North of Albania bordering Montenegro, administrative trade center for much of this region
- Tirana
- Capital city of Albania, central administrative hub, close proximity to city centres with skilled workforce, educational institutions, and airport
- Estimated 2022 zone opening will be the first formally opened and active economic zone out of the 3 mentioned
- Exemptions and deductibles within the zone for property, buildings, assets, etc
- Buildings, property tax, and real estate transfer tax exempt for 5 years
- Infrastructure taxes exempt
- Goods can be transported across special economic zones without paying customs duties or VAT
- Export of Albanian goods considered as export supply at 0% VAT rate
- 50 % tax reduction in the first 5 years of business operation
- Deductibles
- Employee wages and social costs are 150% deductible for the first year; new expenses for these associated costs are also 150% deductible for subsequent years
- Capital expenses 120% deductible
- Research & development costs, and employee training expenses doubly deductible for 10 year period
Dedicated Support
One-stop-shop through AIDA: Provides cost-free legal consultancy, vast network contacts, and other resources for business investment and development
- Services: Training workshops for business plan development in regard to 1 EURO contracts; resources to assist with Albanian financing, taxes, infrastructure, and licensing
- Network contacts: Business, ministry, National Business Center, legal, and other professional contacts to assist businesses
- AIDA contact information:
Tel: +355 (0)42 251 001, Email: info@aida.gov.al
