Foreign investors exploring Albania’s growing tourism sector often ask what legal requirements must be met to operate a hotel or guesthouse in Albania.
The Albanian hospitality sector is open to foreign ownership, allowing international investors to own and manage accommodation businesses under the same legal framework as local operators.
However, hotels and guesthouses must meet specific licensing, registration, and compliance obligations to operate legally.
Key Legal Requirements
Operating a hospitality business in Albania requires compliance with:
– Company registration with the National Business Center (QKB) as a legal entity (most often a Limited Liability Company or sh.p.k.)
– Tourism license from the Ministry of Tourism or relevant authority, depending on the type and size of accommodation
– Health and safety compliance certificates proving the property meets hygiene, fire safety, accessibility, and building standards
– Municipal permits for local taxes, signage, and zoning compliance
– Registration for VAT and other applicable taxes with the General Directorate of Taxes
A tourism license is mandatory for offering accommodation services to the public. Authorities may inspect the property to verify compliance with minimum standards set under Albanian tourism regulations.
Employment and Payroll Obligations
Hospitality businesses must register their employees with the tax authority and the Social Insurance Institute. Employers are required to provide written employment contracts, withhold payroll taxes, and contribute to social and health insurance for each employee.
Foreign employees must obtain valid work permits or residence permits with employment rights if working in Albania.
Foreign Ownership and Licensing
Foreign investors can fully own a hotel or guesthouse in Albania without a local partner. Licensing and compliance requirements apply equally to foreign-owned and Albanian-owned businesses.
License applications must be submitted in Albanian, and supporting documents (such as foreign qualifications or certificates) must be legalized and officially translated.
Practical Considerations
Obtaining a tourism license may involve inspections and document review by multiple authorities. Investors are advised to ensure the property’s legal title, zoning classification, and building compliance before purchase or conversion into hospitality use.
Failing to obtain the required licenses can result in fines, closure orders, or disqualification from participating in official tourism promotions or partnerships.
Meeting the legal requirements to operate a hotel or guesthouse in Albania is essential for a compliant, profitable hospitality business. From company registration to tourism licensing, each step must be completed under Albanian law.