Taxation in Albania - 2025

Clear, current overview in EUR or USD. Includes the 0% small-business regime, current VAT bands, and payroll math.

CIT 15% VAT 20% · 6% / 10% · 0% (exports) PIT 13% / 23% Updated … FX: —

Individuals (PIT & Payroll)

Resident rules

Personal Income Tax (employment)

Annual base

Rate

Notes

Up to threshold

Legal threshold: ALL 2,040,000 ≈

13%

Annual settlement basis (from 2025).

Above threshold

As above

23%

Top bracket for employment income.

Payroll runs monthly during the year; year-end reconciliation applies the annual 13%/23% thresholds.

Social & Health Contributions

Type

Employee

Employer

Social insurance

9.5%

15%

Health insurance

1.7%

Base limits: min ALL 40,000 · ceiling ALL 176,416 ≈ /

Quick monthly take-home

Businesses (CIT & Small business)

Corporate

Corporate Income Tax (companies)

Standard rate15%

ScopeResidents: worldwide. Non-residents: Albanian-source.

Advance/filingMonthly advances; annual return.

Selected sectors enjoy incentives (e.g., software production/development at 5% CIT within legal windows).

Small business regime (0% until 2029)

Who Self-employed / entrepreneurs under the turnover cap (not incorporated companies).

Turnover cap ALL 14,000,000 per year ≈

Rate 0% profit tax (generally through 31 Dec 2029)

Exceptions Specific “free professions” excluded by government decision (standard rates apply).

If turnover exceeds the cap, standard rates apply (e.g., 15% on profits outside the 0% regime).

VAT

0% / 6% / 10% / 20%

Rates & scope

Standard rate20%

Reduced6% tourism/accommodation, books, some audiovisual; 10% selected agricultural inputs

Zero-rated0% exports, qualifying international transport & related supplies

Quick VAT calculator

Amount (EUR) Enter price excluding or including VAT.

Mode

Withholding (non-treaty snapshot)

Cross-border

Standard rates

Payment

Rate

Note

Dividends / profit distributions

May reduce to 0%–5% by treaty.

Interest

15%

Specific lender/treaty can lower.

Royalties, technical/management fees

15%

Documentation required for relief.

Instant dividend check

Gross dividend (EUR)

Albania has many double tax treaties. For reductions (0%/5%), confirm ownership tests and provide residency certificates.

Notes

Legal thresholds are stated in ALL by law (shown here only as ≈ EUR/USD for clarity). Rates reflect the 2025 framework: PIT 13%/23% (annual), employee contributions 9.5% + 1.7% with base limits; CIT 15%; small-business 0% regime up to ALL 14,000,000 turnover (≈ EUR shown) generally until 31 Dec 2029, with carve-outs for specific free professions; VAT 20% standard with 6%/10% reduced and 0% (exports); WHT 8% dividends, 15% interest/royalties.