Company Formation & Tax in Albania
A fast-growing Adriatic market with a notable small-business break — the SHPK, a 15% corporate tax and a 0% band for smaller companies.
Albania is an EU candidate that opened accession negotiations recently, with low costs, a modern VAT system and a distinctive corporate-tax break for smaller companies. Incorporation is handled online through a one-stop business registry, and full foreign ownership is permitted in most sectors.
Choosing an entity
The standard vehicle is the SHPK (Sh.p.k., shoqëri me përgjegjësi të kufizuar, private limited company), which can be formed with symbolic capital (from ALL 100, under €1). Registration runs through the National Business Center (NBC / QKB), accessible via the e-Albania portal, which issues the tax identification number (NIPT); name approval typically takes a day or two. Tax is then administered by the General Directorate of Taxes. Some steps, such as notarisation or bank account opening, may still call for a local representative.
Corporate tax and VAT
| Tax | Rate |
|---|---|
| Corporate income tax (standard) | 15% |
| Small business (turnover ≤ ALL 14m) | 0% (to end-2029) |
| VAT (standard) | 20% |
| VAT (reduced) | 6% |
| Dividend withholding | 8% |
The standard corporate income tax is 15%. A notable feature is a 0% rate for small businesses with annual turnover up to ALL 14,000,000 (roughly €140,000), in force through the end of 2029 under Law 29/2023 — but it is an all-or-nothing cliff: cross the threshold by any amount and the full 15% applies to the year's profit, so threshold monitoring matters. VAT is 20% standard with a 6% reduced rate for tourism and accommodation. Dividends carry an 8% withholding tax. The lek is the local currency, and Albania has tax treaties with more than 40 countries.
Frequently asked questions
What is the corporate tax rate in Albania?
15% standard, with a 0% rate for businesses whose annual turnover is up to ALL 14,000,000 (about €140,000), in force to the end of 2029.
How much capital do I need for an SHPK?
Symbolic — from ALL 100 (under €1).
What is the Albanian VAT rate?
20% standard, with a 6% reduced rate for tourism and accommodation.
Official sources
This guide is general information prepared by ARM Management and is current as at June 2026. It is not legal or tax advice; rules and thresholds change. Confirm against the General Directorate of Taxes, or with an advisor, before acting.
Set up in Albania with confidence.
ARM Management advises international companies on Albanian entity formation, registration and tax compliance, alongside wider Balkan and EU structuring. Begin with a confidential conversation.