Albania offers a range of investment incentives to attract foreign capital, boost development, and support key industries. These incentives include tax reductions, customs exemptions, land use benefits, and financial support.
For eligible investors, these programs can significantly reduce costs and improve long-term profitability. But accessing them requires proper planning and full legal compliance.
Who Qualifies for Investment Incentives?
Incentives are available to both domestic and foreign investors, provided the business meets the criteria set by the Albanian government.
Priority is given to investments in sectors such as:
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Tourism and hospitality
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Agriculture and agro-processing
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Renewable energy
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Manufacturing and export
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Technology and innovation
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Transport and logistics
The project must meet minimum investment thresholds, which vary by sector and region. Some incentives also apply based on the number of jobs created or the location of the investment, with additional support available for projects in underdeveloped areas.
Available Incentives
Depending on the nature of your investment, you may be eligible for:
Customs and VAT exemptions
On machinery, raw materials, and construction equipment used in the investment
Corporate income tax reduction
Up to 10 years of reduced or zero corporate tax for qualifying sectors or areas
Land use benefits
Long-term lease rights on state-owned land at favorable terms for strategic investments
Employment support
Subsidies for training, hiring, or contributions for newly created jobs
Fast-track licensing and permitting
Assistance through the Albanian Investment Development Agency (AIDA)
Application Process
To apply for incentives, investors must first prepare a complete investment project proposal. This includes:
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A detailed business plan
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Proof of financial capacity
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Legal documentation of the company
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Project timeline and expected impact
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Sector classification and location details
Once complete, the application is submitted to the Albanian Investment Development Agency (AIDA) or the relevant ministry, depending on the project.
If the project is classified as a strategic investment, it may also be reviewed by the Committee for Strategic Investments, which has the authority to approve enhanced incentives and coordinate with public institutions.
Timeframe and Follow-Up
The review process can take several weeks to a few months, depending on the complexity and sector. Once approved, investors receive a decision document outlining the incentives granted and the conditions that apply.
Ongoing compliance is required. If the project fails to meet the investment or employment targets, the government may revoke some or all of the incentives.
Albania’s investment incentives can make a major difference for foreign businesses—if the application is handled correctly. Each opportunity comes with specific conditions, so legal and strategic support is essential.