Yes, a foreign company can own property in Albania directly. However, the rules depend on the type of property, the company’s country of origin, and whether the purchase involves land or built structures.
The Albanian legal system allows full property ownership by foreign legal entities in most cases, but there are specific limitations when it comes to acquiring land.
Ownership of Built Property
A foreign company can freely purchase apartments, commercial units, office spaces, or buildings without restrictions. There is no legal requirement to establish a local branch or subsidiary if the company only intends to hold built property.
Ownership is registered under the company’s legal name at the Albanian Immovable Property Registration Office (IPRO). The company must provide:
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Legal documentation proving its existence (company extract, registration certificate)
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A notarized translation of all documents into Albanian
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A local fiscal number (NIPT) issued for property ownership and taxation
Once registered, the foreign company becomes the legal titleholder and must comply with local property tax obligations.
Ownership of Land
Albania imposes restrictions on the direct ownership of land by foreign individuals and foreign companies.
According to the Albanian Constitution and Property Law, foreign entities cannot directly purchase land unless one of the following applies:
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The foreign company is from a country that has a reciprocity agreement with Albania regarding land ownership
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The foreign company establishes a local entity (e.g. an Albanian sh.p.k or sh.a) and purchases land through that entity
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The land is used for investment purposes that meet the criteria of a strategic investment under Law no. 55/2015
In practice, the most common method is to create an Albanian company and purchase land through it, which allows for full control and legal protection.
Legal and Tax Considerations
Even if the foreign company is not based in Albania, it must obtain a fiscal number (NIPT) to pay annual property tax. It may also be required to submit basic documentation to the tax office.
If the company generates rental income or sells the property, it will be subject to capital gains tax, withholding tax, or VAT, depending on the transaction.
Foreign legal entities are advised to appoint a local legal representative or accountant to manage ongoing obligations.