The New Payment Systems in Albania: AIPS, AIPS-EURO, and AECH       On September 3, 2025, the Bank of Albania approved a new set of regulations modernizing the country’s national payment infrastructure. The reforms affect three key systems: AIPS (Albanian Interbank Payment System) – the RTGS system for high-value payments in Lek AIPS-EURO – the equivalent RTGS system for … Read More

Individuals with Net Profits Over 14 Million ALL Will Be Taxed at 23%, Aligned with LLCs and JSCs ​     The Ministry of Finance has updated Instruction No. 26, dated September 8, 2023, regarding income tax, clarifying the tax treatment of self-employed individuals who derive the majority of their income from one or a few clients. This update aligns … Read More

New rules for certifying maritime tourism operators take effect ​     The Ministry of Finance has updated Instruction No. 26, dated September 8, 2023, regarding income tax, clarifying the tax treatment of self-employed individuals who derive the majority of their income from one or a few clients. This update aligns the reporting system more closely with standard accounting practices … Read More

Refund of Prepaid Tax Installments and Legal Updates for Freelance Professionals ​     The Ministry of Finance has updated Instruction No. 26, dated September 8, 2023, regarding income tax, clarifying the tax treatment of self-employed individuals who derive the majority of their income from one or a few clients. This update aligns the reporting system more closely with standard … Read More

Major Tax Shift in Albania: When Does Self-Employment Become Employment? ​     The Ministry of Finance has updated Instruction No. 26, dated September 8, 2023, regarding income tax, clarifying the tax treatment of self-employed individuals who derive the majority of their income from one or a few clients. This update aligns the reporting system more closely with standard accounting … Read More

LEGAL TAX CHANGES FROM JANUARY 1, 2025       Personal Income Tax Law no. 29/2023 “On Income Tax,” as amended, came into force on 18.05.2023 and has extended its effects since January 1, 2024, with some exceptions, which will be presented in this informational material. This law aims to establish rules regarding:a) income tax for individuals and entities;b) income … Read More

Implementation of the New Income Tax Law: Requirements for Employees and the Declaration of Personal Status       The recently enacted Income Tax Law No. 29/2023 requires employees to submit a Declaration of Personal Status, which serves to determine the application of deductions from the taxable base as stipulated under Articles 20 and 22 of the law. While this … Read More

Improvements and New Amendments to the Legal Audit Law       The latest amendments to the legal audit law represent a significant step toward modernizing practices and aligning with international standards. This law introduces a stronger focus on transparency, professionalism, and harmonization with global requirements, impacting several key areas of this profession. Importance of Legal Amendments The recent review … Read More

Advantages of Doing Business in Albania Compared to the Balkans       Albania provides various advantages for foreign investors and businesses, including a favorable tax regime, affordable labor costs, and efficient processes for business registration. Below is a detailed comparison of Albania’s economic and tax environment with other countries in the Balkan region. Value Added Tax (VAT) In Albania: … Read More

Understanding Salary Contributions and Taxes in Albania       Understanding Salary Contributions and Taxes in Albania In Albania, wages are the primary source of income for most individuals, accounting for over 60% of household earnings. For 2024, the minimum wage is set at 40,000 ALL, which forms the basis for calculating taxes and social contributions. Social Security and Healthcare … Read More