Albania
Register an Sh.p.
Foreign Ownership Eligibility
Albania welcomes 100% foreign-owned companies
Fully remote formation — you never need to set foot in the country.
- 100% foreign ownership permitted in all general commercial sectors — no local partner required
- No statutory minimum share capital for an Sh.p.k. (LLC)
- Single-person company permitted — one individual can be sole shareholder and sole director
- Local registered address in Albania required (a virtual office or registered agent address is acceptable)
- Foreign shareholders' passports and any non-Albanian documents may require certified translation
- Certain regulated sectors require specific licences — verify with AIDA before incorporating
- No nationality-based restrictions on who may own or direct an Albanian company
Ownership
100% Foreign OK
Formation
100% Remote
Note
Physical presence is NOT required for company registration — you can incorporate entirely online via e-Albania. However, physical presence IS typically required to open a corporate bank account in Albania. No Albanian bank currently offers fully remote corporate account opening for foreign-owned companies. Plan for an in-person branch visit or authorise a local representative with notarised power of attorney.
Tax at a glance
Albania Tax Overview
15%
Standard corporate income tax
Applies to most companies. Tax year is the calendar year; CIT return due 31 March of the following year.
0%
CIT for small businesses (until 31 Dec 2029)
Annual turnover below ALL 14,000,000 (~€127,000). Applies to any qualifying Albanian company — not a special zone or application. Source: PwC Tax Summaries Albania, Feb 2026.
5%
CIT — software companies (transitional, expired for new registrations)
Available only to software production companies registered on or before 31 December 2023; valid until 31 December 2025. Companies registering in 2026 are subject to the standard 15% rate. Source: PwC Tax Summaries Albania, Feb 2026.
20%
Standard VAT rate
Mandatory registration threshold: ALL 10,000,000 (~€90,000) annual turnover. Monthly VAT returns and payment due by the 14th of the following month.
8%
Withholding tax on dividends (non-treaty)
Non-resident rate. Reducible under Albania's 42 DTTs — for example: Austria 5%, Germany 5%, UK 5%/8%, Netherlands 0%/5%/8%. Source: PwC Tax Summaries Albania WHT, Feb 2026.
15%
Withholding tax on interest and royalties (non-treaty)
Also applies to management, technical, and consulting fees paid to non-residents. Treaty partners may qualify for reduced rates. Source: PwC Tax Summaries Albania WHT, Feb 2026.
13% / 23%
Personal income tax — employment income
13% on annual income up to ALL 2,040,000; 23% above that threshold. From 1 January 2025. Source: PwC Tax Summaries Albania Individual, Feb 2026.
15% + 1.7%
Employer social and health insurance contributions
15% social insurance + 1.7% health insurance. Contribution base: ALL 50,000/month (min) to ALL 186,416/month (max), from January 2026. Source: PwC Tax Summaries Albania Other Taxes, Feb 2026.
42
Double tax treaties in force
Covering EU member states, UK, UAE, Saudi Arabia, Singapore, China, Turkey, and others. 46 signed total; 42 in force. Source: PwC Tax Summaries Albania WHT, Feb 2026.
Pros & cons
Advantages & Considerations
Key Advantages
Free online company registration via e-Albania at QKB — ALL 0 for online formation, ALL 120 (~€1.10) in-person. One of the lowest registration costs of any jurisdiction in Europe. Source: PwC Tax Summaries Albania, Feb 2026; qkb.gov.al.
0% corporate income tax until 31 December 2029 for businesses with annual turnover below ALL 14,000,000 (~€127,000). This applies to any qualifying Albanian company — not a special zone or application process. Source: PwC Tax Summaries Albania, Feb 2026.
15% standard CIT rate, competitive within the Southeast European region. No additional surcharge, no municipal corporate tax. Source: PwC Tax Summaries Albania Corporate CIT, Feb 2026.
No statutory minimum share capital for an Sh.p.k. (LLC). No capital lock-up required — you can incorporate with a nominal share capital amount. Source: QKB; PwC Tax Summaries Albania.
Fully online registration system at QKB. The e-Albania platform (e-albania.al) enables complete Sh.p.k. incorporation without visiting Albania. Certificate of Registration (NIPT) issued within 1–3 business days. Source: QKB official process.
100% foreign ownership permitted in all general commercial sectors. No mandatory local partner requirement. A single foreign national can be sole shareholder and sole director. Source: Albanian Commercial Companies Law.
42 double tax treaties in force, covering EU member states, UK, UAE, Saudi Arabia, China, Singapore, and other major trading partners. Dividend WHT can be reduced from 8% domestic rate under applicable treaties. Source: PwC Tax Summaries Albania WHT, Feb 2026.
Official EU candidate country — accession negotiations formally opened July 2022. Ongoing regulatory alignment with EU commercial and competition law reduces long-term compliance risk for companies planning EU market entry. Source: European Commission.
Adriatic coast location — direct ferry routes and a 1–2 hour flight to Italy. Close proximity to EU Adriatic ports and regional Balkan markets (Greece, North Macedonia, Kosovo, Montenegro). Italian and German businesses have increasingly used Albania as a nearshore base.
Growing IT and BPO sector. Albania attracts nearshore technology and business process operations from European clients, driven by low labour costs, growing university graduate output (University of Tirana, Polytechnic University), and EU accession trajectory.
Low business operating costs — office rent, utilities, and accountancy fees among the lowest in the European region. Practical all-in setup cost typically €200–800; annual maintenance typically €800–2,500.
Low employer social insurance contribution base — minimum contribution base ALL 50,000/month (from January 2026), capped at ALL 186,416/month. Source: PwC Tax Summaries Albania Other Taxes, Feb 2026.
Considerations
Not yet an EU member. Albania is an EU candidate country, not a member state. EU financial services passporting, freedom of movement, and EU single market benefits do not apply. Full accession is years away — negotiations opened July 2022 and typically take 5–10+ years.
8% withholding tax on dividends for non-resident shareholders (non-treaty rate). This materially reduces net returns for foreign investors repatriating profits and must be factored into total-return calculations alongside the 15% CIT. Source: PwC Tax Summaries Albania WHT, Feb 2026.
Banking sector limitations. Albanian banks have limited access to international banking products and SWIFT/correspondent banking can be slow compared to major EU financial centres. Physical presence is typically required for corporate account opening despite fully digital company registration.
Moderate institutional quality. Rule of law, judicial efficiency, and anti-corruption measures are improving but remain below EU averages. World Bank Governance Indicators for Albania reflect ongoing reform — enforcement and contract protection are real considerations for investors.
Small domestic market — population of approximately 2.8 million, reduced further by significant emigration in recent decades. Albania-registered companies primarily access the EU and regional markets rather than a large domestic consumer base.
Currency risk. The Albanian Lek (ALL) is not pegged to the Euro and is subject to exchange rate fluctuation. Unhedged ALL exposure carries devaluation risk for companies earning revenue in foreign currencies.
Structural Comparison
Sh.p.k. — Shoqëri me Përgjegjësi të Kufizuar (LLC)
Sh.a. — Shoqëri Anonime (Joint Stock Company)
Branch Office (Degë)
Representative Office
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Free consultation with XBandGlobal specialists to confirm the right entity structure (Sh.p.k., Sh.a., or Branch Office), verify sector restrictions, and agree on a realistic budget and timeline.
Check company name availability at qkb.gov.al. Name searches are instant. Confirm the exact Albanian-form name required for your entity type.
Prepare incorporation documents: Articles of Association (Statuti), shareholder details, director details, and declaration of beneficial ownership. Foreign shareholders may need passport translation.
Submit application online via e-Albania (e-albania.al) for zero-cost registration, or in person at QKB (ALL 120 / ~€1.10). XBandGlobal's Albanian partner handles submission on your behalf.
QKB issues Certificate of Registration with NIPT (tax and registration number) — typically within 1–3 business days for online applications.
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
Government registration costs in Albania are negligible — ALL 0 online, ALL 120 in-person. The practical setup costs are a local registered address, accountancy, and any notary or translation fees for foreign documents. Albania is among the lowest-cost incorporation and maintenance destinations in Europe, with typical all-in setup costs of €200–800 and annual maintenance of €800–2,500.
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Albania setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? NO.
Banking options for non-resident founders in Albania. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| Raiffeisen Bank Albania | International commercial bank | Low (Visit Required) | Largest bank in Albania by assets. Strong international SME and corporate banking desk. Familiar infrastructure for European businesses. Physical presence required for initial account opening. KYC requirements: Certificate of Registration, NIPT, passport copies of all beneficial owners and directors, proof of address. |
| OTP Bank Albania | International commercial bank | Low (Visit Required) | Hungarian-owned; part of the OTP Group. Solid corporate services and international payment infrastructure. Suitable for European companies with OTP banking relationships elsewhere. In-person visit required. |
| Banka Kombëtare Tregtare (BKT) | Local commercial bank | Low (Visit Required) | Largest Albanian-owned commercial bank. Wide branch network across Albania. Good choice for companies with primarily domestic Albanian operations. In-person KYC required for new corporate accounts. |
| Intesa Sanpaolo Albania | International commercial bank | Low (Visit Required) | Italian-owned; part of Intesa Sanpaolo Group. Well-suited to Italian businesses operating nearshore in Albania or to companies needing strong Italy–Albania payment corridors. In-person account opening required. |
Frequently Asked
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