A holding company in Albania can be used to manage shares in other companies, centralize control, and structure international investments more efficiently. The setup process is straightforward, but legal compliance and tax considerations must be properly handled from the start.
This model is commonly used by investors looking to reduce liability, optimize tax obligations, or manage multiple business assets under one entity.
Legal Structure
A holding company in Albania is typically formed as a limited liability company (sh.p.k) or joint stock company (sh.a). Both structures are permitted to hold shares in other companies and manage investments across different sectors.
The company must be registered with the National Business Center (QKB) and have a registered office address in Albania. Foreign nationals can own 100% of the shares, and there are no residency requirements for shareholders or directors.
The articles of association must clearly state that the purpose of the company includes owning or managing shares or interests in other companies.
Tax Treatment
Albania does not offer specific tax advantages for holding companies, but it applies a relatively low corporate income tax rate. For companies with annual turnover below 14 million ALL, the tax is 0%. Above this threshold, the standard rate is 15%.
Dividends received from local or foreign subsidiaries are subject to a dividend tax of 8%, unless reduced by a tax treaty. There is no withholding tax on dividends paid abroad if the recipient is an individual or corporate shareholder in a country with a valid double taxation agreement.
Holding companies must also comply with standard accounting, VAT registration (if applicable), and annual reporting obligations.
Ownership and Control
A holding company can be used to own and control multiple businesses, including real estate companies, operating firms, or intellectual property assets. It may also be used to separate liabilities between different operations.
Shares can be held by a single individual, a group of partners, or another legal entity. Corporate shareholders are allowed under Albanian law, making it possible to create multi-layered international structures.
Changes to ownership, share transfers, or capital increases must be recorded with the QKB and are subject to notarial procedures.
Benefits for Foreign Investors
Foreign investors often use holding companies in Albania to simplify asset management, enter joint ventures, or consolidate control over local subsidiaries. Other benefits include:
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Centralized decision-making across multiple businesses
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Reduced risk exposure by separating liabilities
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Flexible ownership structure with corporate or individual shareholders
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Easier expansion into other Balkan or EU markets through a single legal hub
While Albania does not offer a dedicated holding regime, the system is flexible enough to support international investment strategies.