Albania

Facts and figures

Pre arrival procedures
Employment visa
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation

Pre arrival procedures
Foreign citizens may enter the territory of Albania with or without visa (depending on nationality). As a general rule foreign citizens working in Albania for a period greater than one month are required to obtain a work permit, unless exempt by law or international agreement. Application forms are obtained at the migrations department in the ministry of labour and social affairs, in Albania embassies and consulates abroad and in regional labour office of the respective districts.

Employment visa
The Albanian legislation does not make reference to a specific ceiling for the number of foreign employees that a company established in Albania should have. Nevertheless an article of the law on foreign individuals, takes into consideration the needs of the employment market and generally requires local employers to justify hiring foreign individuals provided that the number of foreigners working for an employer does not exceed 10% of the total number of staff in the previous 12 months. However there are limitations for EU expatriates based on reciprocity Bilateral or Multilateral Agreement, for expatriates which are not required for a work permit (WP) in accordance with law. Different types of WP are issued by the activity that the expatriate will perform as employer/employee, transferred within the company, investors, seasonal work, student and professional development etc. WP are also issued for family members of foreigners residing lawfully in Albania and these have a priority in their issuance. Generally a WP is up to one year, with the option of being renewed. However there are cases where the WP is issued with validity of the required period for performing the work. After two renewals of a WP the foreign worker has the right to have a permanent work permit provided that certain condition is met.

Tax year
The Albanian tax year is from the 1 January to 31 December.

Tax returns and compliance
Albanian residents and those expatriates that have become Albanian tax residents by residing in Republic of Albania for 183 days or more, must file their annual tax return before 30 April of the year following the calendar year.

Payment of Albanian tax - the employer (the payer of the income) is obliged to withhold and pay in the name and behalf of the employee, the amount of personal income tax, during each separate payment.

Income tax rates
The personal income tax rate in Albania is flat and it is 10%.

Sample income tax calculation

 Employment income per month: 1000 €
 Tax at 10%: 100 €
    
                                                      
Information about Albania:

Last updated 23 November 2012

This information has been provided by Grant Thornton Albania, a member firm within Grant Thornton International Ltd and is for informational purposes only. Neither Grant Thornton Albania or Grant Thornton International Ltd can guarantee the accuracy, timeliness or completeness of the data contained herein. As such, you should not act on the information without first seeking professional tax advice.
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