Albania actively encourages foreign investment and has established a legal framework to protect investors from unfair treatment, expropriation, and discriminatory practices. Whether you’re buying property, opening a company, or launching a project, understanding your legal protection as a foreign investor is essential.
The country’s investment climate is supported by both domestic laws and international treaties, offering multiple layers of security.
Equal Treatment for Foreign Investors
Albanian law guarantees that foreign investors are treated equally to Albanian citizens in all business activities. This includes the right to own property, establish companies, enter into contracts, and access the local courts.
There are no restrictions on foreign ownership in most sectors. Investors from outside the European Union enjoy the same rights as EU citizens, except in specific cases like direct ownership of agricultural land, which requires a locally registered company.
Legal Protection Against Expropriation
The Albanian Constitution and the Law on Foreign Investments prohibit the government from expropriating private property without:
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A public interest justification
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Due legal process
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Fair and immediate compensation
This compensation must reflect the market value of the investment at the time of expropriation. The law ensures that foreign investors are not disadvantaged in comparison to local citizens during any property or business-related dispute.
Access to International Arbitration
One of the most important protections for foreign investors is the right to resolve disputes through international arbitration. Albania is a member of the:
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ICSID (International Centre for Settlement of Investment Disputes)
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New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards
This means investors can bring cases against the Albanian state outside of Albania, under the terms of international treaties or investment contracts. This protection is especially valuable in high-stakes projects or disputes involving government contracts.
Bilateral Investment Treaties (BITs)
Albania has signed over 40 bilateral investment treaties with countries including Germany, Italy, Austria, France, Switzerland, the United States, and more.
These treaties offer:
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Protection against discriminatory treatment
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Compensation for expropriation
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Freedom to transfer capital and profits abroad
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Access to international dispute resolution mechanisms
If you are investing from a country that has a treaty with Albania, your rights may be even further reinforced.
Capital Repatriation and Profit Transfers
Foreign investors in Albania are allowed to freely transfer capital, profits, and dividends abroad, in accordance with tax and financial reporting obligations. There are no foreign currency controls that restrict movement of capital related to legal business activities.
All transfers must be supported by proper documentation and declared through the Albanian banking system.
Albania offers a favorable and well-defined legal environment for foreign investors. With constitutional guarantees, international arbitration access, and equal legal treatment, the system is designed to encourage foreign participation while minimizing political or legal risk.