ALOperating in Albania
Payroll, accounting, employment, immigration, entity setup, and corporate compliance managed locally through a single international coordination model.
Request a country assessmentThe regulatory landscape
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.
The structural detail companies must plan around is that this exemption is an all-or-nothing cliff, not a graduated allowance: a business earning ALL 13.9 million in turnover pays zero corporate tax regardless of profit margin, while a business earning ALL 14.1 million — just ALL 200,000 more — pays the full 15% rate on its entire net profit for the year, with no tapering or partial relief. This makes turnover monitoring a critical, continuous accounting task rather than an annual check.
Official language
Albanian
Legal forms
Shpk · Sha
Corporate tax rate
15% standard · 0% for turnover up to ALL 14M (~€120,700) through 31 December 2029
Currency
ALL (Albanian lek)
Employer social security
16.7% of gross salary (15% pension + 1.7% health) — base between ALL 50,000 and ALL 186,416/month (2026)
Dividend tax
8%
Minimum share capital
Shpk: ALL 100 (~€1) · Sha: ALL 3,500,000 private / ALL 10,000,000 public
Integrated services in Albania
Each service is delivered as part of an integrated service model, coordinated across functions under a single point of accountability. Clients engage one team, not a coordination layer between independent providers.
Accounting & Tax Compliance
Statutory accounts under IFRS, VAT returns, and corporate tax filings aligned with Albanian standards, including continuous turnover monitoring against the CIT exemption threshold.
Explore Accounting & Tax CompliancePayroll & Workforce Management
Full-cycle Albanian payroll including pension and health insurance contributions, the 2026 minimum contribution base, and employment terms under Albanian labour law.
Explore Payroll & Workforce ManagementCompany Formation & Entity Setup
Shpk and Sha incorporation, National Business Center (QKB) registration, and post-formation compliance setup.
Explore Company Formation & Entity SetupWorkforce Mobility
Residence and work permit coordination for foreign partners, managers and key staff physically present in Albania.
Explore Workforce MobilityClient profiles in Albania
HR & Employment Advisory
Multinationals establishing or restructuring Albanian operations
Company Formation & Entity Setup
Companies entering Albania for the first time, requiring entity setup and initial compliance infrastructure
Workforce Mobility
Growing small businesses approaching the ALL 14 million turnover exemption threshold
Payroll & Workforce Management
Companies already operating in Albania consolidating fragmented HR, payroll and accounting providers under a single governance layer
At the center of your HR operations
What clients say about our services in Albania
We were on track to cross the turnover exemption threshold by a small margin in the final quarter, and hadn't realised the entire year's profit — not just the excess — would become taxable once we crossed it. Understanding the cliff-edge structure in advance let us plan the timing of a few invoices instead of absorbing an unplanned tax bill.
Finance Director, Technology Group — Albanian OperationsInsights on Albania
Selected articles on regulatory developments and operational frameworks relevant to companies in Albania.
The corporate tax exemption is all-or-nothing: cross the turnover threshold and the full liability applies, not just the excess. How that shapes turnover planning and invoice timing.
Read articleThe VAT registration threshold and the corporate tax exemption sit at different levels and move independently. A growing business can be liable for one and exempt from the other.
Read articleSalary is deductible but carries contributions; dividends are taxed at a flat 8% on already-taxed profit. How the balance shifts across different revenue profiles.
Read articleFrequently asked questions
Questions raised most often by companies entering or operating in Albania.
What services does HTLC Network provide in Albania?
HTLC Network provides Payroll & Workforce Management, Accounting & Tax Compliance, HR & Employment Advisory, Company Formation & Entity Setup, and Workforce Mobility services in Albania through a coordinated international service model.
Why do companies consider Albania for business expansion?
Albania is increasingly attracting international businesses for its competitive labour costs, its geographic proximity to EU markets and its developing business environment.
Can foreign companies hire employees in Albania?
Yes. Foreign employers can hire local personnel, but payroll registration, tax compliance, employee registration and labour law obligations must be addressed.
What payroll obligations apply in Albania?
An employer generally manages salary payments, tax withholding, social insurance contributions and statutory reporting requirements.
Is a local company required before hiring staff in Albania?
The answer depends on the business model and the planned activities. Tax, regulatory and employer obligations should be reviewed before entering the market.
How does the 0% corporate tax exemption actually work?
Companies and self-employed individuals with annual gross turnover up to ALL 14 million pay no corporate income tax at all, guaranteed through 31 December 2029 under Law No. 29/2023. This is a hard threshold: crossing it by any amount applies the standard 15% rate to the entire year's net profit, not just the portion above the threshold.
Should an owner-director take salary or dividends?
Salary paid to an owner-director is a deductible business expense, reducing net profit, but is subject to personal income tax and social contributions. Dividends are taxed at a flat 8% after corporate tax has already been paid. The optimal split depends on the company's specific revenue and cost structure and should be modelled individually.
What is the minimum capital to form a Shpk?
A Shpk (limited liability company) requires only ALL 100 — approximately €1 — in minimum share capital, making it one of the most accessible entity formations in Europe. A Sha (joint stock company) requires substantially more: ALL 3.5 million for a private offering or ALL 10 million for a public one.
Talk to a Albania expert
For companies structuring a market entry or consolidating an existing Albanian operation under a single governance model.