Albania offers a favorable legal environment for foreign investors. Its laws guarantee equal treatment, full ownership rights, and legal protection for foreign businesses, aligning with international standards to attract private capital.
There are no restrictions on foreign ownership in most sectors, and the country has signed multiple treaties to protect investments and avoid double taxation.
Equal Treatment Under the Law
The legal foundation for foreign investment in Albania is the Law on Foreign Investments (Law no. 7764/1993). It guarantees that foreign investors will be treated the same as domestic investors, with no discriminatory measures based on nationality or country of origin.
Foreign investors can:
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Own 100% of shares in Albanian companies
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Repatriate profits, dividends, and capital freely
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Acquire and manage property, subject to certain land ownership rules
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Operate across most economic sectors without special licensing
There is no requirement to have a local partner, and no restrictions on the type or size of investment, unless otherwise regulated for public interest or national security.
Legal Protection and Stability
The law provides strong legal protection to foreign investments, including:
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Guarantees against expropriation, except in cases of public interest and with full compensation
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The right to international arbitration for investment disputes
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Protections offered through bilateral investment treaties (BITs)
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Coverage under ICSID (International Centre for Settlement of Investment Disputes), as Albania is a member
These measures help reduce risk for investors entering long-term or high-capital sectors.
Repatriation of Funds
Foreign investors are allowed to freely transfer:
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Profits and dividends
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Royalties and interest
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Proceeds from sale or liquidation
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Compensation in case of expropriation
Transfers can be made in foreign or local currency, through licensed financial institutions. There are no restrictions on currency exchange or capital movement.
Sector Access and Restrictions
Most sectors are open to foreign investment without limitation. However, specific industries such as energy, telecommunications, infrastructure, and media may require special licenses or regulatory approval.
Land ownership by foreign individuals or companies is restricted when it comes to agricultural land or land without buildings. In such cases, a local company structure is used to hold the asset legally.
Foreigners can freely own constructed property and lease land for commercial use.
Tax and Treaty Network
Albania has signed over 40 double taxation treaties (DTTs), which help reduce withholding taxes on cross-border payments. Foreign investors also benefit from:
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A flat corporate tax rate of 15% (0% for small businesses under threshold)
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No dividend withholding tax if treaties apply
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Access to investment incentives in strategic sectors
These agreements improve financial predictability and reduce the risk of tax duplication.