What you pay as an individual
Albania uses a progressive income tax system with three brackets. Tax residency is established after 183 days in Albania in a calendar year. Albania operates a territorial system — income earned from outside Albania is generally not subject to Albanian personal income tax.
| Monthly Income | Annual Equivalent | Tax Rate | Notes |
|---|---|---|---|
| Up to 30,000 ALL (~€270) | Up to ~€3,240 | 0% | Tax-free bracket |
| 30,001 – 150,000 ALL | €3,240 – €16,200 | 13% | Middle bracket |
| Above 150,000 ALL (~€1,350/mo) | Above €16,200 | 23% | Top bracket |
Foreign income: If you're a tax resident in Albania but earn income from foreign clients or employers, this is generally not taxed in Albania under the territorial principle. Always confirm with a local accountant for your specific situation, particularly if you have tax obligations in your home country.
Tax rates for your company
| Tax Type | Rate | Threshold / Notes |
|---|---|---|
| Corporate Income Tax | 15% | On net profits |
| Small Business Tax | 0% | Annual turnover under 14M ALL (~€130K) |
| VAT | 20% | Registration required above 10M ALL (~€90K) turnover |
| Dividends Tax | 8% | Withheld at source when dividends paid to shareholders |
| Employer Social Contributions | ~22% | On gross employee salary |
| Employee Social Contributions | ~9.5% | Deducted from employee gross salary |
The 0% tax for companies under €130K in annual turnover is one of Albania's most attractive features for small startups and digital businesses. Many founders operate profitably for years before crossing this threshold — paying zero corporate tax on their profits.
Opening bank accounts in Albania
Raiffeisen Bank Albania
Best for foreigners and international businesses. Excellent online banking, English support, SWIFT transfers, business accounts. Most expats' first choice.
OTP Bank Albania
Strong retail and business banking. Good mobile app, competitive fees, familiar to Central/Eastern European clients. Solid international transfer capabilities.
BKT (Banka Kombëtare Tregtare)
Largest bank by assets. Wide branch network, good for local transactions and payroll. Business accounts have competitive monthly fees.
Credins Bank
Growing technology-forward bank. Good digital banking, competitive on SME products. Popular with local businesses and increasingly with expats.
What you need to open an account
Personal account: Valid passport, proof of residence in Albania (rental contract or utility bill), Albanian phone number. Some banks also require proof of income source.
Business account: Company registration documents (NUIS certificate), passport/ID of all directors/shareholders, company statute, proof of business address. Process takes 3–7 business days.
Digital alternatives: Wise and Revolut are widely used by Albania's expat community for international transfers, holding multiple currencies, and as a bridge before a local bank account is open. Not a substitute for local banking but very useful as a complement.
Staying compliant — what you need
Albania requires quarterly VAT returns (if registered), quarterly income tax prepayments, and an annual financial statement. For companies, a local accountant is essential. Monthly cost: €100–200 for a small company.
Find an accountant: Our community Telegram has a list of English-speaking accountants experienced with foreign-owned companies. This is one of the most valuable community resources — a good accountant saves you far more than their fee.
Questions about tax or banking?
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