Albanian law restricts foreign individuals from owning land directly, but allows them to acquire land through locally registered companies. This method is widely used by international investors looking to build homes, develop real estate projects, or secure agricultural plots.
By using an Albanian company as a legal vehicle, foreigners can fully comply with property laws while maintaining effective control over the land.
Why Foreigners Can’t Buy Land Directly
Under the Albanian Constitution, foreign citizens are not allowed to own land in their personal name, unless there is a reciprocity agreement with their home country—which rarely applies in practice.
However, these restrictions do not apply to companies. Foreigners can establish a business in Albania and use that company to purchase and own land without limitation.
This includes land for:
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Residential construction
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Commercial development
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Agricultural use
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Tourism or hospitality projects
Setting Up the Company
The most common structure for land acquisition is a single-owner sh.p.k (limited liability company). It allows full foreign ownership, minimal bureaucracy, and full control over the asset.
To set up the company, the founder must:
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Register with the National Business Center (QKB)
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Obtain a NIPT (tax ID)
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Open a bank account and declare a local business address
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Appoint an administrator (can be the same foreign owner)
Once the company is active, it becomes a legal Albanian entity and can purchase land just like any local business.
Legal and Tax Implications
The land is owned by the company—not the individual.
This means:
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The property appears on the company’s balance sheet
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Any future sale of the land is subject to capital gains tax
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The company must remain compliant with annual filings, even if not actively trading
Ownership of the company can be transferred later if the investor wishes to sell the asset indirectly by selling company shares.
If the land will be developed, the company must also apply for construction permits, zoning approvals, and relevant project documentation.
Strategic Use for Real Estate Projects
Using a company is also advantageous for investors planning larger real estate projects. It provides:
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Legal clarity for multi-property ownership
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Easier structuring for joint ventures or partnerships
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A base for tax-efficient operations if structured correctly
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Flexibility in transferring ownership or shares
This method is used by both individuals and institutional investors entering the Albanian property market.