The Albanian national government has adopted several export-oriented policies to make it favorable for foreign manufacturers to get their products to market.
VAT = 0% on exports (effective)
Products that are only processed in the country for export (i.e., re-export) are eligible for VAT reimbursement.
Free Trade is enjoyed with most of Europe, including:
- Europe Union
- European Free Trade Association (Iceland, Liechtenstein, Norway & Switzerland)
- Central European Free Trade Association (Bosnia, Kosovo, Moldova, Montenegro, N. Macedonia, and Serbia)
- Turkey
Preferential Trade is enjoyed with a number of key international partners, including:
- United States
- Australia
- Japan
- Russia
100% foreign ownership of companies is permitted
Products that are only processed in the country for export (i.e., re-export) are eligible for VAT reimbursement.
Free Trade is enjoyed with most of Europe, including:
- Europe Union
- European Free Trade Association (Iceland, Liechtenstein, Norway & Switzerland)
- Central European Free Trade Association (Bosnia, Kosovo, Moldova, Montenegro, N. Macedonia, and Serbia)
- Turkey
Preferential Trade is enjoyed with a number of key international partners, including:
- United States
- Australia
- Japan
- Russia
100% foreign ownership of companies is permitted
SOURCE:
http://aida.gov.al/en/business-in-albania/setting-up-your-business/customs
https://dkik.hu/download/20/albanian-economy-september-2020 (PDF download)
http://aida.gov.al/en/business-in-albania/setting-up-your-business/customs
https://dkik.hu/download/20/albanian-economy-september-2020 (PDF download)
Taxes in Albania are competitive with the region, and those manufacturers and investors in the automotive sector are granted reduced income tax.
Corporate income tax for automotive = 5%
The standard income tax for corporations is 15%, though strategic industries like automotive are taxed at a lower rate of 5%
Employer social security contributions = 16.7%
Employers are responsible for paying a portion of social security contributions on behalf of employees. These contributions are based on a percentage of wages and includes 15% Social Insurance and 1.7% Health Insurance.
The standard income tax for corporations is 15%, though strategic industries like automotive are taxed at a lower rate of 5%
Employer social security contributions = 16.7%
Employers are responsible for paying a portion of social security contributions on behalf of employees. These contributions are based on a percentage of wages and includes 15% Social Insurance and 1.7% Health Insurance.
SOURCE: http://aida.gov.al/en/business-in-albania/setting-up-your-business/taxes
Albania is in the process of implementing several special economic zones throughout the country that confer additional benefits to exporters.
Incentives offered in the Technical and Economic Development Areas:
- Full exemption from VAT, including Albanian products that enter
- Investors are exempt from 50% of the profit tax rate (currently 15%) for a period of 5 years
- Wage expenses are 150% deductible for the 1st year; After 1st year, incremental wage expenses will be 150% deductible
- Training costs are 200% deductible for a period of 10 years
- Development projects are exempted from infrastructure taxes
- Buildings in TEDA are exempted from real estate taxes for a period of 5 years
SOURCE: https://dkik.hu/download/20/albanian-economy-september-2020 (PDF download)
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