Albania's Mountain Package: Buy Land for EUR 1, Pay Zero Tax for 10 Years

Albania's Mountain Package (Paketa e Maleve) is a landmark government initiative designed to revitalize the country's mountainous regions through private investment. Law No. 20/2025 was approved by Parliament on March 13, 2025 and entered into force on May 3, 2025.

The core proposition is extraordinary: you can buy state-owned land for a symbolic EUR 1, receive 10 years of complete tax exemption, and access soft loans at 3.5% interest backed by a 70% sovereign guarantee. By January 2026, 40 municipalities have submitted applications and 69 priority development zones have been formally designated across 13+ municipalities.

The law specifically targets the Albanian diaspora, local residents who have used land without title, and domestic and foreign investors interested in developing mountain tourism, agritourism, agriculture, and cultural heritage projects.

The first 500 entities that acquire property under this law and execute their declared projects benefit from a complete exemption from four taxes for 10 years:

• Income/profit tax (tatimi mbi fitimin) — normally 15%
• VAT (TVSH) — normally 20%
• Real estate/property tax (taksa e pasurive) — varies by municipality
• Infrastructure impact tax (taksa e ndikimit ne infrastrukture)

Priority for the 500 slots is allocated on a first-come, first-served basis — whoever applies first, benefits first. This creates genuine urgency for serious investors.

Additionally, certified agritourism businesses qualify for a reduced 6% VAT rate (instead of 20%) and 5% profit tax even outside the Mountain Package. Combined with the full exemption, agritourism is the most tax-efficient sector in Albania today.

The primary category is "non-owner possessors" (posedues jopronar) — individuals or legal entities who have continuously possessed and used state-owned land for at least 10 years without formal title. This is extremely relevant for Albanian diaspora families who left ancestral properties decades ago. The law accepts a sworn declaration accompanied by certification from the village head or administrative unit administrator as proof of possession — formal documentation is not required.

Additionally, registered traders or businesses making joint investments with current possessors qualify. This opens a path for foreign investors or diaspora members to partner with local residents who hold possessory rights.

Eligible sectors include:

• Agritourism and mountain tourism (guesthouses, accommodation)
• Agriculture and livestock development
• Agricultural processing (agroperpunimi)
• Artisanal activities
• Education projects
• Cultural and natural heritage preservation
• General economic, industrial, and tourist development

Step 1: Apply online through the e-Albania portal (service code 16886) or via the official website paketaemaleve.gov.al.

Step 2: Submit your application to the local municipality with three documents: a survey plan (plan rilevimi) of the property prepared by a licensed surveyor, proof of possession or a sworn declaration with certification, and a business development plan describing your intended project.

Step 3: The municipality publicly posts your application for 45 days to allow third-party objections.

Step 4: The State Cadastral Agency (ASHK) and the Property Treatment Agency verify the legal status of the land.

Step 5: The Municipal Council approves or denies the application within 30 days after the posting period ends.

Step 6: A conditional sale contract is signed at the symbolic price of EUR 1. The ownership certificate is issued only after construction is completed per the business plan.

The entire process, from application to contract signing, takes approximately 3-4 months if there are no objections or complications.

Your application requires a business development plan that describes the planned activity, projected investment amount, expected employment, and implementation timeline. This is not a formality — the municipality and ministry evaluate it before granting approval.

A credible business plan should demonstrate how your project will contribute to the local mountain economy. Common project types include guesthouses and eco-lodges, agritourism farms, adventure tourism operations, agricultural processing facilities, and cultural heritage restoration.

What we prepare for clients: We draft professional business plans that meet Law 20/2025 criteria, including financial projections, tax impact analysis, employment plans, and compliance roadmaps. A well-prepared business plan significantly increases your chances of approval, especially in competitive zones like Theth where demand already exceeds supply (274 applications for the Theth-Nderlysaj zone alone as of January 2026).

The Mountain Package comes with binding conditions that can void your entire investment if breached:

• Construction must begin within 3 years of signing the conditional sale contract. If it doesn't, the ministry unilaterally terminates the contract and the land returns to state ownership — with zero financial compensation.
• Building permits expire after 2 years if construction doesn't start.
• No resale for 10 years. The property cannot be sold, transferred, or encumbered for a decade. The only exceptions are inheritance and family consolidation for development purposes.
• Bookkeeping and tax filing remain mandatory. Even during the 10-year tax exemption, you must maintain accounting records, file tax declarations, and comply with all reporting obligations. The exemption is from paying taxes, not from the administrative requirements. Failure to comply can result in fines and loss of exempt status.

This last point catches most investors off guard. A 10-year tax exemption sounds like you can forget about accountants and tax offices — but the opposite is true. You need proper accounting from day one to protect your exempt status.

Law 20/2025 establishes a EUR 250 million credit fund for agricultural and rural development in mountain zones. The terms are highly favorable:

• 3.5% interest rate (compared to commercial rates of 6-9%)
• 70% sovereign guarantee on collateral — the Albanian state guarantees 70% of your loan collateral, dramatically reducing what you need to put up

The Albanian Development Bank (Banka Shqiptare e Zhvillimit) will finance projects that commercial banks typically overlook. This means even investors without sufficient traditional collateral can access credit, provided their project falls within a designated priority zone.

For diaspora investors, this is particularly relevant: you may not have Albanian real estate to use as collateral, but the sovereign guarantee fills that gap.

As of early 2026, the Council of Ministers has designated 69 priority development zones across 13+ municipalities. Key locations include:

• Shkoder — 5 zones including Theth, Nderlysaj, Rragam (approximately 4,420 hectares). The Albanian Alps are the most sought-after area, with 274 applications for Theth alone.
• Kruje — 5 zones (15,233 ha) — the largest designated area
• Klos — 9 zones (10,343 ha)
• Vau i Dejes — 6 zones (9,564 ha)
• Kukes — 3 zones (907 ha)
• Mat — 3 zones (620 ha)
• Elbasan — 4 zones, Permet — 1 zone, Skrapar — 1 zone
• Maliq — 10 zones, Belsh — 5 zones, Vore — 7 zones

The list expands monthly as more municipalities submit proposals through VKM (Council of Ministers) decisions. An additional 8 municipalities are currently in the designation pipeline.

Navigating the Mountain Package requires coordination across multiple government agencies, legal requirements, and ongoing compliance obligations. Here is exactly what we do for our clients:

• Business plan preparation — Professional plans that meet Law 20/2025 criteria and maximize approval chances
• Business registration — Register your entity (Person Fizik or Sh.p.k.) with QKB, obtain your NIPT, and configure fiscalization
• Application support — Guide you through the e-Albania portal, coordinate with the municipality, and manage the 45-day posting period
• Accounting during the exemption period — Maintain proper books, file mandatory declarations, and protect your exempt status
• Investment tracking — Document all expenditures against the business plan for compliance verification
• Post-exemption tax planning — Prepare your transition to standard tax rates in year 11 with no surprises

Whether you are a diaspora Albanian reconnecting with ancestral land, a foreign investor exploring mountain tourism, or a local resident formalizing your property rights — we handle the financial and administrative complexity so you can focus on building.

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.