Accounting & Tax Compliance in Albania
Statutory accounts under IFRS, VAT returns, and corporate tax filings aligned with Albanian standards, including continuous turnover monitoring against the CIT exemption threshold.
AlbaniaCurrency
ALL (Albanian lek)
Corporate tax rate
15% standard · 0% for turnover up to ALL 14M (~€120,700) through 31 December 2029
VAT standard rate
20%
Legal forms
Shpk · Sha
Bookkeeping standard
IFRS (listed/large entities) or National Accounting Standards for smaller entities
Annual filing
Annual financial statements filed with the National Business Center by 31 March following year-end
How accounting and tax compliance work in Albania
Albania applies a standard 15% corporate income tax rate, among the lowest in Europe, but the more consequential feature for small and growing businesses is the temporary 0% exemption under Law No. 29/2023: companies and self-employed individuals with annual gross turnover up to ALL 14 million (approximately €120,700) pay no profit tax at all, an incentive guaranteed through 31 December 2029.
Operating in Albania combines one of Europe's most accessible entity formation thresholds with a turnover-monitoring discipline that companies near the ALL 14 million exemption ceiling must treat as an ongoing, not annual, compliance task.
Discuss your Albania accounting setupRate structure and what it applies to
15% standard · 0% for turnover up to ALL 14M (~€120,700) through 31 December 2029
- Hard turnover cliff at ALL 14 million — — crossing it by any amount applies 15% CIT to the entire year's net profit, with no graduated transition
- Independent VAT and CIT thresholds — — mandatory VAT registration applies above ALL 10 million turnover, regardless of CIT-exempt status, creating a band where a business is VAT-registered but CIT-exempt simultaneously
- Raised contribution base for 2026 — — minimum monthly salary for social security purposes increased to ALL 50,000, affecting minimum employer contribution cost
- Salary-dividend structuring — for owner-directors, balancing deductible salary (subject to PIT and contributions) against the flat 8% dividend tax on distributed profit
Rates that apply in Albania
| Rate | Applies to |
|---|---|
| 20% | Standard rate — most goods and services |
| 6% (accommodation, books, and defined categories) | Reduced rate(s) — defined categories of goods and services |
IFRS (listed/large entities) or National Accounting Standards for smaller entities, and when an audit is required
Statutory bookkeeping in Albania follows IFRS (listed/large entities) or National Accounting Standards for smaller entities. Statutory audit required for joint-stock companies (Sha) and large entities per National Accounting Standards thresholds — smaller Shpk entities are generally exempt.
Confirm your audit obligationAnnual accounts and registration
Annual financial statements filed with the National Business Center by 31 March following year-end.
Entity registration runs through the National Business Center (QKB), single-window registration, typically taking As little as 1–2 business days.
Plan your filing calendarFrequently asked questions
Talk to a Albania accounting expert
The 0% turnover exemption is the single most consequential planning variable for small and growing businesses in Albania, precisely because it is a cliff rather than a graduated benefit. Companies approaching the ALL 14 million threshold should model the tax impact of crossing it well before year-end, not discover the consequence only when filing the annual return.