Albania Company Tax Rates 2026: The Complete Rate Card for Businesses

The standard CIT rate in Albania is 15% on net taxable profit. The most important feature of the current system is the 0% threshold that shields the majority of small businesses from profit tax entirely through 31 December 2029 under Law No. 29/2023.

The 0% rate is all-or-nothing. Cross ALL 14,000,000 in gross turnover by even one lek and the 15% rate applies to your entire net profit for the year. There is no taper. A business earning ALL 13,900,000 with ALL 8,000,000 in expenses pays zero CIT. A business earning ALL 14,100,000 with the same expenses pays ALL 915,000. This cliff-edge makes threshold monitoring a critical accounting task. See our 0% rate deep dive for structuring strategies.

PIT applies to individuals: employees, sole traders (Person Fizik), and individual investors. Employment income uses monthly brackets; self-employed income uses the same ALL 14M turnover threshold as CIT.

Employment Income -- Monthly Brackets

Investment and Rental Income

Withholding tax applies when an Albanian entity pays a non-resident company or individual. For intercompany transactions with related parties, transfer pricing rules also apply. The Albanian payer withholds the tax and remits it to the tax authority. Albania has 46 signed DTTs (42 in force), which may reduce these standard rates. Always verify the applicable treaty before making cross-border payments.

See our dividend tax guide for the full distribution flowchart including the interaction between CIT, 8% WHT, and the effective rate on owner earnings.

VAT registration is mandatory once rolling 12-month turnover exceeds ALL 10,000,000 (~EUR 96,200). Voluntary registration is permitted below this threshold. The VAT period is the calendar month, with returns and payments due by the 14th of the following month.

Note that the VAT threshold and the CIT threshold are independent. A business with turnover between ALL 10M and ALL 14M is simultaneously VAT-registered (charging 20% on sales) and CIT-exempt (paying 0% on profit). For digital service providers and freelancers, see our VAT for freelancers guide.

Contributions are mandatory for all employers and self-employed individuals. Rates apply on the portion of gross salary between the minimum (ALL 50,000) and maximum (ALL 186,416) contributory salary thresholds, both updated on 1 January 2026.

Employer and Employee Contribution Rates

The total employer cost on any gross salary is 116.7% of that gross wage. An employee on ALL 100,000/month gross costs the employer ALL 116,700/month before any other overhead. Self-employed Person Fizik entities pay fixed monthly contributions: ALL 11,500 social insurance + ALL 3,400 health insurance = ALL 14,900/month (~EUR 143), mandatory regardless of income level.

These taxes are administered locally and are easy to overlook. Property tax is assessed annually; transfer tax is paid at the notary on each transaction.

Property and Transfer Taxes

Local Business Tax (Tatimi Lokal) -- Tirana Indicative Ranges

This example models total tax burden for a consulting Sh.p.k. at two stages: the 0% CIT phase (before 2030, turnover below ALL 14M) and the standard 15% CIT phase (post-2029 or above threshold). Assumptions: revenue EUR 80,000 (~ALL 8,320,000), expenses EUR 30,000, net profit EUR 50,000. Owner-director on ALL 80,000/month gross salary.

Scenario A -- 0% CIT Applies

Scenario B -- 15% CIT Applies (Post-2029 or Above ALL 14M)

The jump from 7.9% to 16.5% effective rate underlines why the 2029 sunset date requires business planning decisions today, not in 2028. Contact our Tirana office for a personalised calculation of your optimal structure.

Disclaimer: The information in this article is provided for general informational purposes only and does not constitute legal, tax, or financial advice. Cross-border tax structuring requires professional analysis of your specific circumstances. We recommend consulting with a qualified tax advisor before making decisions based on this content.