The Albanian national government has adopted several export-oriented policies to make it favorable for foreign manufacturers to get their products to market.

VAT = 0% on exports (effective)
Products that are only processed in the country for export (i.e., re-export) are eligible for VAT reimbursement.

Free Trade is enjoyed with most of Europe, including:
- Europe Union
- European Free Trade Association  (Iceland, Liechtenstein, Norway & Switzerland)
- Central European Free Trade Association (Bosnia, Kosovo, Moldova, Montenegro, N. Macedonia, and Serbia)
- Turkey

Preferential Trade is enjoyed with a number of key international partners, including:
- United States
- Australia
- Japan
- Russia

100% foreign ownership of companies is permitted
SOURCE: (PDF download)

Taxes in Albania are competitive with the region, and those manufacturers and investors in the automotive sector are granted reduced income tax.

Corporate income tax for automotive = 5%
The standard income tax for corporations is 15%, though strategic industries like automotive are taxed at a lower rate of 5%

Employer social security contributions = 16.7%
Employers are responsible for paying a portion of social security contributions on behalf of employees. These contributions are based on a percentage of wages and includes 15% Social Insurance and 1.7% Health Insurance.


Albania is in the process of implementing several special economic zones throughout the country that confer additional benefits to exporters.

Incentives offered in the Technical and Economic Development Areas:
  • Full exemption from VAT, including Albanian products that enter
  • Investors are exempt from 50% of the profit tax rate (currently 15%) for a period of 5 years
  • Wage expenses are 150% deductible for the 1st year; After 1st year, incremental wage expenses will be 150% deductible
  • Training costs are 200% deductible for a period of 10 years
  • Development projects are exempted from infrastructure taxes
  • Buildings in TEDA are exempted from real estate taxes for a period of 5 years
SOURCE: (PDF download)