Albania Tax Rates
Albania operates a progressive income tax system with rates of 0%, 13%, and 23%, combined with a 15% corporate tax rate and a 20% standard VAT. As an EU candidate country, Albania is modernizing its tax system and has been attracting growing interest from foreign investors. The country offers low labor costs and a strategic location in the Western Balkans.
Top Income Tax Rate
23%
Corporate Tax Rate
15%
VAT / Sales Tax
20%
Capital Gains Tax
15%
Detailed Tax Information
Income Tax Brackets
Albania applies progressive income tax: 0% on monthly income up to ALL 50,000, 13% on income from ALL 50,001 to ALL 60,000, and 23% on income above ALL 60,000. Self-employed income is taxed at 15% above a certain threshold. The zero bracket provides a generous tax-free allowance relative to average salaries.
| Income Range | Tax Rate |
|---|---|
| L 0 – L 50K | 0% |
| L 50K – L 60K | 13% |
| L 60K+ | 23% |
Corporate Tax
Albania levies corporate income tax at 15%. Small businesses with annual turnover up to ALL 14 million are exempt from corporate tax. Agro-processing businesses pay 5%.
Standard Rate
15%
Small Business Rate
0%
Capital Gains Tax
Capital gains are taxed at 15% for individuals. This applies to real estate, shares, and other assets. Real property gains may be subject to a simplified 15% rate on the difference between sale and purchase price.
Rate
15%
VAT / Sales Tax
Albania applies a standard VAT (TVSH - Tatimi mbi Vleren e Shtuar) rate of 20% with reduced rates of 10% and 6%.
Standard Rate
20%
Cryptocurrency Tax
Cryptocurrency gains in Albania are taxed under general income tax rules at 15% for capital gains. Albania does not have specific crypto tax legislation but follows general principles.
Tax Treaties
Albania has approximately 45 double taxation treaties. The country is expanding its treaty network as part of EU accession preparations.
Treaty Network
45
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Albania
See how much you could save by moving here from your current country.
+$3K
Tax in United States
$24K
24.4% effective
Tax in Albania
$22K
21.7% effective
You Save
10.9%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
